Search - convention

5 February 2002 Internal T.I. 2000-0058637- Interest Paid to Non-Resident-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 Where the Australian branch of a Canadian bank pays interests to an Australian subsidiary of the bank, the interest paid would not be covered by Article XI of the Canada-Australia Convention (as it would be borne by an Australian permanent establishment and, therefore, would not arise in Canada) and would be exempted by the business profits Article (Article VII) rather than by Article XXI. ... Convention, Article XXII rather than Article VII of that Convention would be relevant, in light of the Technical Explanation of the U.S. ...

6 February 2024 Internal T.I. 2022-0936261I7- Application of the Canada-US treaty to expats-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 application of Canada-US treaty to a Canadian corporation that is a deemed U.S. resident under the anti-inversion rules Regarding a corporation (the “Inverted Payer Corporation”) incorporated under the laws of Canada that is subject to the “anti-inversion rules” in IRC §7874(b) (so that it is resident in the U.S. for IRC purposes), the Directorate indicated that under the “tie-breaker” rule in Art. ... Convention (the “Convention”), the Inverted Payer Corporation is resident for Convention purposes in Canada because it had been incorporated there, so that s. 250(5) would not apply to deem it to be a non-resident. ... X(5) of the Convention bars the U.S. from taxing such dividends, IRC §7874(f) provides that the anti-inversion rules apply despite U.S. treaty obligations, and a U.S. court would respect this treaty override (see Jamieson v. ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 lump sum paid for distributorship rights was not a royalty In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right to distribute its product in Canada, with Canco agreeing not to acquire or sell competitive products. ... A substantially similar definition of the term “royalties” [to that in the Treaty] is found in Article 12 of the Model Convention …. Paragraph 10.1 of the OECD commentary (the “OECD Commentary”) on Article 12 of the Model Tax Convention states that payments made in consideration for obtaining the exclusive distribution rights of a product in a given territory do not constitute royalties within the meaning of the Model Tax Convention as they are not made in consideration for the use of, or the right to use, an element of property included in the definition. ...

Convention (the “Convention”), the Inverted Payer Corporation is resident for Convention purposes in Canada because it had been incorporated there, so that s. 250(5) would not apply to deem it to be a non-resident. ... X(5) of the Convention bars the U.S. from taxing such dividends, IRC §7874(f) provides that the anti-inversion rules apply despite U.S. treaty obligations, and a U.S. court would respect this treaty override. ...

Before considering Reg. 400(2)(e), the Directorate found that “Article XVI of the Convention, which applies without regard to, inter alia, Article VII of the Convention, and which permits Canada to tax income derived by a non-resident company from performances in Canada without requiring that such income be earned through a permanent establishment in Canada under the Convention.” ...

31 July 2002 Internal T.I. 2002-0136937 F- Placement Français "Assurance-salaire-vie-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 withdrawal from French employee-contribution plan (assurance-salaire-vie) was not a “pension” The holder in France of an "assurance-salaire-vie," which is similar to a registered retirement savings plan except that a withdrawal from it is taxable only if made within the first eight years of the contribution, immigrates to Canada. ... XVIII(1) of the France-Canada Convention as a “pension” as the only contributions were employee contributions, nor would they qualify as an:annuity” per Art. ... XXI of the Convention, the withdrawals could be taxed in Canada, and also in France. ...

3 March 1997 Internal T.I. 9641327- SUBSECTION 20(11) AND TAX TREATIES-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 Discussion of the interaction of s. 20(11) and paragraph 5 of Article XXIV of the U.S. Convention. ...

TREATY & LIFE INSURANCE PROCEEDS-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 The word "gains" in article XIII of the Canada-U.S. Convention means capital gains. ...

21 November 2023 Internal T.I. 2021-0880101I7- Article 5(3)(b) of the Canada-Mexico Treaty-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 the “six months” test in Art. 5(3)(b) of the Mexico Treaty should be day-counted (more than 183 days) Art. 5(3)(b) of the Mexico-Canada Convention provides that a “permanent establishment” includes: (b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or a connected project) within a Contracting State for a period or periods aggregating more than six months within any twelve month period Regarding how “six months” should be computed, the Directorate first noted that, as this was an undefined term, it was to be determined in accordance with “Canadian domestic tax law,” and then stated: Considering that the testing period of six months is not required to be consecutive, the only reasonable interpretation of the term “periods aggregating more than” six months within any twelve month period” is to aggregate the number of days equivalent to the number of months. This interpretation was supported by Art. 5(3)(b) of the 2001 UN Model Convention, on which Art. 5(3)(b) of the Canada-Mexico Treaty was based, in 2011 having replaced the previous “six months” test by a “183 days” test, and by Kayelle. ...

6 March 1995 Internal T.I. 9428767- VIDEO REPRODUCTION RIGHTS-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 The exemption in Article XII of the Canada-U.S. Convention for copyright royalties does not apply to royalties for video tape works intended for private (home) use. ...