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28 April 2010 External T.I. 2009-0347581E5 F- Frais de formation-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose expense incurred in course of operating real property need not have a direct effect on profit When asked whether expenses for attending a convention, seminar, luncheon meeting or other meeting incurred by an individual in the course of operating a business or an immovable are deductible under s. 9 even where there is no direct effect on profits, CRA stated: [I]n order for an expense to be considered to be made or incurred "for the purpose of", it is not necessary to show that income actually resulted from the particular outlay or expenditure itself. ... CRA responded: [W]ith the exception of certain specific provisions … (for example, convention expenses in subsection 20(10) and the restriction on capital cost allowance for rental property in subsection 1100(11) of the Regulations), the Act does not generally provide for a distinction between an expense incurred to earn income from a business and an expense incurred to earn income from property. ...

25 May 2017 External T.I. 2017-0685651E5- Non-capital losses of LLC-- summary under Article 25 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 25 restriction of s. 88(1.1) to Canadian corporations is not discrimination prohibited by Art. ... XXV(5), CRA noted the statement into para. 41 of the OECD Commentary on Art. 24(3) of the OECD Model Convention that “It does not extend to rules that take account of the relationship between an enterprise and other enterprises (e.g….transfer of losses…,” and stated: [A] rule that effectively allows for the transfer of losses between companies under common ownership does not in our view come within the protection against discrimination found in paragraph 5 of Article XXV... ...

CRA responded: By virtue of paragraph 1 of Article XV of the Convention, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. … If the employee performs employment in France while resident in Canada, France may tax the employee to the extent provided in Article XV of the Convention and Canada may allow a foreign tax credit for non-business income taxes paid by the employee to France. … 2002-0169607 states that the "contribution sociale généralisée" and the "contribution pour le remboursement de la dette sociale" qualify as a non-business income tax … since these contributions have the legal characteristics of a tax (levied without direct consideration) as opposed to social contributions which, in turn, confer on those who pay them a right to benefits. … [S]ocial security contributions generally do not qualify as income or profits taxes because they are not really taxes at all, within the judicially accepted meaning of that term. ...

15 January 1993 T.I. 923421 (November 1993 Access Letter, p. 508, ¶C180-152)-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 Discussion of annual distributions of income by a Canadian- resident trust to a U.S. partnership. ...

(Tax Window, No. 31, p. 4, ¶2510)-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 Tax-exempt entities are resident in the jurisdiction in which they are organized. ...

3 September 1992 T.I. 920333 "Interest-Free Loans- Reason for Withholding"-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 The word dividend in the Canada U.S. ...

(Tax Window, No. 15, p. 14, ¶1679)-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 Re taxability of rental payments derived from the use of moveable property in Canada by a Norwegian limited partnership. ...

Convention. ...

(Tax Window, No. 1, p. 9, ¶1166)-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Because the taxpayer's activities in Canada must be considered in relation to its business activities elsewhere, a U.S. resident will not be precluded from being considered to have a permanent establishment in Canada by virtue only of the Canadian activities having no expectation of profit. ...

(Tax Window, No. 32, p. 6, ¶2598)-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 A sales force in Canada could be regarded as stable or permanent activities of a U.S. corporation in Canada. ...