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Article 2103 confers the predominance over NAFTA of rights and obligations that Canada may have under a tax convention. ... Moreover, the rental income from property located in Mexico would have to be included in the income of the individual resident in Canada on the same basis as if the property was located in Canada and the same principle applies to the capital gain realised on the disposition of such property subject to the provisions of the Convention Between the Government of Canada and the Government of the United Mexican States For the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (the Convention). The effect of Articles 6 and 13 of the Convention allows for both States to tax the income from the property and the gain resulting from the disposition of the property. ...

Our comments in the September 4 memorandum apply equally to a dual resident of Canada and the U.S. or Canada and any other country where the person would be considered a resident of that other Contracting State for purposes of interpreting that particular income tax convention and that convention restricts Canada's right to tax a particular source of income.  ... Income Tax Convention, Canada's right to tax such interest income would be limited to 15% and our comments in the September 4 memorandum concerning the calculation of Federal and Provincial tax apply. ... An example of the tax reduction under this revised formula is as follows: Canadian Employment Income   $59,000 Interest Income from Canadian sources, $1,100(A)   Less: Expenses incurred to earn the Canadian interest income   100 1,000 (B) Net Income (as well as paragraph 3(a) income)   $60,000 (c) Deduction in computing taxable income   10,000 Taxable Income   $50,000 (D) Total Federal and Provincial Taxes Payable @ 40% Rate D X 40% = $50,000 X 40% =   $20,000 (E) Taxes Payable Relating to Canadian Interest Income B X E = $ 1,000  x $20,000 =C $60,000   $ 333 (F) Limitation under paragraph 2 of Article 11 of the Convention  10% X A = 10% X $ 1,100 =   $110 (G) Tax ReductionF- G = $333- $110 =   $223 (H) Note: The tax reduction should be apportioned on a reasonable basis between the Federal and Provincial taxes payable. ...

Manque de clarté des conventions et nécessité d’avoir des faits supplémentaires pour donner une conclusion définitive. 5. ... Vous n’avez pas joint à votre demande la convention signée entre XXXXXXXXXX. ... Il faudrait également analyser la substance des conventions pour établir la réalité économique. ...

If our conclusions are correct, the U.S. has taxed in accordance with the Convention. 4. ... Tax Convention (the "Convention") would prevent the U.S. from taxing any of this amount (assuming there was a gain, not a loss on the disposition of the shares and assuming the shares of XXXXXXXXXX did not represent a U.S. real property interest for the purposes of paragraph 3(a) of Article XIII of the Convention). ... If that is the case, the only remaining provision that may be relevant is Article XXII of the Convention, which states that income arising in the U.S. may be taxed in the U.S, without reduction by the Convention. ...

While these comments were made in respect of a convention, they are also relevant in respect of the seminar described above. ... The Court, in upholding an assessment in which the costs of attending the convention were disallowed in their entirety, concluded that the taxpayer attended the convention primarily for the purposes of a vacation rather than for business purposes. ... In addition, the convention site and its climatic allure was also considered to be relevant where the convention was oriented towards attracting pleasure seekers. ...

Au cours du mois XXXXXXXXXX, une convention de fonctionnement est conclue sous l’autorité de la loi de l’état de New York entre les deux membres de New-York-LLC-1, soit M. ... B, alors unique membre de New-York-LLC-2, établi une convention de fonctionnement à l’égard de cette LLC. 11. ... Le XXXXXXXXXX, une convention de fonctionnement est conclue sous l’autorité de la loi de l’état de la Floride entre M. ...

Income Tax Convention reduces the rate of withholding tax on dividends if the beneficial owner of the dividends is a company which owns it beast 10% of the voting stock of the company paying the dividends. ... Income Tax Convention, it is the Department's opinion that the 10% test is determined by reference to the number of issued and outstanding shares of the company which entitle the holder to a vote. ...

The Canada-US Income Tax Convention must be consulted in order to determine whether amounts paid from a U.S. source to a Canadian resident would be taxable. Paragraph 1 of Article XXII of the Canada-US Tax Convention, entitled "Other Income" provides that a Contracting State of which a person is a resident, has the right to tax items of income, wherever arising, if such income is not dealt with in the prior articles of the Convention. ...

Our Comments Paragraph 1 of Article 14 of the Convention provides that income in respect of professional services of an independent character would be subject to Canadian income tax to the extent that it was attributable to a fixed base in Canada that was regularly available to the taxpayer for purposes of performing the services. As outlined in our previous discussions, the commentary on Article 14 of the OECD Model Tax Convention suggests that there were no intended differences between the term "fixed base" for purposes of Article 14 and the term "permanent establishment" for purposes of Article 7, Business Profits. Further, we note that Article 5 of the Convention generally defines a permanent establishment as a "fixed place of business through which the business of an enterprise is wholly or partly carried on". ...

Income Tax Convention (the "Convention") provides for the 1989 and 1990 taxation years, while the individual was a non- resident of Canada and a resident of the United States, that salaries, wages and other remuneration derived by a resident of the United States in respect of employment shall be taxable only in the United States unless the employment is exercised in Canada. Since the employment was exercised outside Canada in the 1989 and 1990 taxation years, the Convention would also exclude such income from being taxed in Canada in those years. ... Since all of the employment was exercised in the United States, the income will be sourced in the United States for purposes of the Act and the Convention. ...