Search - convention

17 February 1995 External T.I. 9400545- RESIDENCE & SOURCE DEDUCTIONS (HAA7576-1)-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 "Where a U.S. resident who is not a factual or deemed resident of Canada exercises his employment in Canada, his employer... is required to withhold source deductions in respect of the employment under subsection 153(1) of the Act even if the remuneration received by such an individual is exempt from Canadian taxation by virtue of paragraph 2 of Article XV of the Convention. However, pursuant to paragraph 2 of Article XVII of the Convention, the individual may apply to the competent authority of Canada for a waiver from, or reduction of, the withholding tax otherwise exigible. ...

(June 1990 Access Letter, ¶1281)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 The definition of royalties in the Canada-U.S. Income Tax Convention includes payments made to a resident of the U.S. for the use of computer software. ...

12 June 2009 External T.I. 2009-0316511E5 F- Charges sociales et autres retenues France-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 list of pension plans recognized for French tax purposes re Art. ... XXIX(5) of the Canada-France Convention: [or as non-business income tax for the purposes of section 126]: CSG ("contribution sociale généralisée" ["general social contribution"]) CRDS ("contribution pour le remboursement de la dette sociale " [contribution for the repayment of the social debt]) Sécurité sociale vieillesse [old age social security] (retirement) Pole emploi (similar, in your opinion, to Employment Insurance) Retraite complémentaire [supplementary pension] (according to you, mandatory)? ... XXIX(5), CRA stated: [T]he purpose of this provision of the Convention is to oblige a contracting country (in your example, Canada) to grant relief during the first 60 months of residence to an individual who contributes to a pension fund in his or her country of origin (France) while working in the country where he or she resides (Canada) and continues during this period to contribute to the pension fund in his or her country of origin. ...

27 August 2012 External T.I. 2011-0416181E5- US internet publisher- CDN resident advertiser-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 per-click fees paid to US website publisher were for its services in uploading ads and were not Treaty royalties A US website publisher, which qualifies for benefits under the Canada-US Income Tax Convention and does not have a server or other permanent establishment in Canada, enters into an arrangement with an independent Canadian-resident promoter (the "Promoter") under which the Promoter will sell advertising space on the website to Canadian advertisers. ... XII of the Canada-US Convention. Assuing the US publisher had no permanent establishment in Canada, the fees also would be exempt under Art. ...

CRA stated: Pursuant to paragraph 1 of Article XVIII of the Convention, amounts received from a traditional IRA by a Canadian resident may be taxed in Canada. ... Consequently, the Convention does not apply to prevent the 2010 conversion amount from being taxed in Canada. CRA noted, however, that "in many cases, Article XVIII of the Convention may apply to either defer or relieve taxation in Canada. ...

19 August 2010 External T.I. 2009-0344111E5 F- Résidence Société Capital-Risque- Conv Can-France-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 French venture capital corporation is resident in France (“liable to tax”) notwithstanding that it has elected to be exempt on its portfolio gains In finding that a French venture capital corporation ("VCC"), that was resident in France for French taxation purposes by virtue of its domicile as well as its effective place of management, and that had elected to be exempt from French corporate income tax respecting current income and capital gains on the sale of securities included in its portfolio, was a resident of France for purposes of the Canada-France Income Tax Convention, CRA stated: [A] VCC is liable to tax in France by reason of its domicile, residence, place of management or any other criterion of a similar nature, as provided for in paragraph 1(a) of Article IV of the Convention, notwithstanding the fact that it may have opted for exemption from French corporation tax. ...

15 March 2006 External T.I. 2005-0124911E5 F- Prestation compensatoire française-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 life annuity, was to be treated for Treaty purposes as alimony or similar payments since it was treated by CRA as a support amount under ITA A resident of France was awarded compensatory benefits by order of the applicable French court on her divorce from her husband, consisting of a lump sum (payable in two instalments, separated by a year) and a life annuity payable on a monthly basis. ... CRA referred to Art. 18(4) of the Canada-France Convention, which provided: Alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof, shall be taxable only in that other State. It found that since the life annuity (but not the lump sum) was treated under Canadian domestic tax law (s. 56.1(4)) as a taxable support amount, Art. 3(2) of the Convention deemed it to be amounts referred to in Art. 18(4), so that Canada had the exclusive right to impose tax thereon. ...

REAL PROPERTY INTEREST & FTC (5638-2)-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 FTC for U.S. ... Income Tax Convention …, the U.S. has the right to tax Mr. A's gains on the disposition of his Canco's shares, as described … above. Furthermore, paragraph 3(a) of Article XXIV … provides that gains of a resident of Canada which may be taxed in the U.S. in accordance with the Convention shall be deemed to arise in the United States for the purposes of Article XXIV and paragraph 2(a) of Article XXIV provides that, subject to the provisions of the Act, Canada must permit a foreign tax credit in respect of income tax paid to the United States on gains arising in the United States. ...

Expense- Know-How and Training deducible cost of cruise that included seminars would not exceed the cost of a comparable domestic course Are expenses incurred by members of an Association respecting conventions, symposia and seminars held during a cruise deductible from their income? CRA noted that IT-357R2, para. 9 indicates that training is aimed at learning a subject in accordance with a formal course of study, whereas a convention is a formal meeting of members of an organization for professional or business purposes, and that para. 2 indicated that where the taxpayer takes a training course merely to maintain, update or upgrade an already existing skill or qualification respecting the individual’s business or profession, expenses incurred in connection with such a course are not considered to be capital in nature. ... If the costs were incurred in connection with a convention, nothing would be deductible because an ocean cruise is considered to occur outside Canada ...

(Tax Window, No. 13, p. 23, ¶1610)-- summary under Article 3 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 3 Because a partnership is not a "company" for purposes of the Canada-U.S. Convention, a partnership of two corporations will not be eligible for the reduced withholding tax rate on dividends of 10% for a company owning at least 10% of the voting shares of the payor. ...