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Tax Convention (“Convention”), business profits of a corporation resident in Canada that does not have a permanent establishment in the U.S. shall be taxable only in Canada. Will CRA agree to accept requests for competent authority relief under Article XXVI of the Convention on the basis that the taxes imposed under the GILTI rules may be in violation of Article VII? ... XXIX(2) the Convention cannot affect the taxation by the US of its own residents, except to the extent provided in Para. ...

Convention applies to TFSA and RDSP trusts Does 2013-0504641E5- indicating that a reduced (to 15%) rate of withholding on amounts distributed by RESPs constituted as trusts can apply pursuant to Art. XXII of the Canada-U.S. convention- also apply to RDSPs and TFSAs that are trusts? After noting that the Part XIII withholding rules could apply to distributions from a TFSA described in s. 12(1)(z.5), 146.2(9) or 207.061, CRA stated: Since payments from TFSAs and RDSPs to US residents are not dealt with in any other Article of the Convention, they qualify as "other income" for the purposes of Article XXII:1 of the Convention. … Consequently, the reduced rate of 15% provided for in Article XXII:2 of the Convention may be applied to amounts distributed from TFSAs and RDSPs to a U.S. resident where such TFSAs and RDSPs are constituted as trusts and are described in paragraph 212(1)(r.1) or 212(1)(p), as the case may be. ...

7 June 2017 CPTS Roundtable, 2017-0695131C6-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 Q.3- Canada-U.K. ... After referring to the status of such shares as “taxable Canadian property”, and noting that under Art.13, para. 5(a), shares may be taxed in Canada if they derive the greater part of their value from immovable property situated in Canada, OR “any right referred to in paragraph 4 of Article 13 of the Convention, which describes certain rights related to petroleum, natural gas, or other related hydrocarbons situated in Canada,” CRA stated: Assuming that the shares of the Canadian subsidiary (which carries on an active oil and gas business) derive the greater part of their value from rights described in paragraph 4 of Article 13 of the Convention, then Canada retains its right to tax the gain on the alienation of those shares. It is not necessary to determine whether the shares derive their value from immovable property as defined in the Convention or the Income Tax Conventions Interpretation Act. ...

3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 9, 2023-0976941C6- Withholding on registered plans-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 RRSP/ RRIF payments are “pensions” under Art. ... XXII of the US Convention, but must be "periodic pension payments" for 15% rate to apply After indicating that the reduced rate of 15% under Art. ... Convention may be applied to amounts distributed to U.S. residents from TFSAs, RDSPs and RESPs (where such payments would have been income if the recipient had been resident), CRA went on to indicate that Art. ...

6 October 2017 APFF Roundtable Q. 6, 2017-0709041C6 F- Services PE-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 there can be a services PE in Canada during the tail end of a project which ends in the first few months of a calendar year Where the conditions in Art. ... Convention (respecting a services PE) are satisfied during a taxation year respecting a particular project, which continues for several months longer in the following taxation year, but with the 183-day criteria not met in that subsequent year, will CRA consider that the enterprise nonetheless is deemed to have a permanent establishment in Canada during the subsequent year? CRA responded that "Since paragraph 9(b) of Article V of the Convention specifies that the 183-day test applies to 'any twelve-month period', that period may not correspond to the taxation year of the taxpayer," and then provided the following example: Pursuant to Article V, subparagraph 9(b) of the Convention, a United States enterprise, whose fiscal year-end is December 31, which provides services on an ongoing basis from January 15, 20_1, to January 25 20_2 shall be deemed to provide such services through a permanent establishment in Canada for the entire period. ...

Expense- Know-How and Training convention expenses "historically" viewed as capital expenditures CRA stated: Where a taxpayer has incurred expenses related to a convention in order to earn income from a business and such expenses are not capital expenditures, such expenses may be deductible in computing its business income without reference to subsection 20(10). Historically, the CRA's position with respect to convention expenses is that such expenditures are generally capital expenditures to which paragraph 18(1)(b) applies. ...

26 May 2016 IFA Roundtable Q. 2, 2016-0642061C6- AOA & Notional Expenses-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 no deduction of notional expenses from the profits of PEs of (non-U.S.) non-residents Notwithstanding the new wording of Article 7 of the OECD Model Convention and the OECD commentary thereon, CRA continues to consider (in light of Cudd Pressure and s. 4(b) of the Income Tax Conventions Interpretations Act) that notional expenses are not deductible in computing the profits attributable to a Canadian permanent establishment for Treaty purposes – with the exception of PEs of qualifying U.S. residents, as to which there is an agreement with the U.S. competent authority which overrides s. 4(b) of the ITCIA. ...

28 November 2011 November CTF Roundtable, 2011-0426591C6- Deemed services permanent establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 subcontracting Where a US company (USCo) subcontracts part of its contract, to perform consulting services to an arm's length Canadian customer (Canco) to related US corporation (USCo 2), whose employees will spend over 183 days in Canada on the project in a 12 month period, then s. 9(b) of Art. V of the Canada-US Convention will deem the services to have been provided by USCo through a permanent establishment in Canada. ... Furthermore: as the discussion in paragraph 42.43 of the [OECD] Commentary pertains to the interpretation of wording that is materially unlike the wording of subparagraph 9(b) or Article V of the Convention…. it is not of assistance in interpreting the latter provision. ...

2004 IFA Roundtable Q. 3, 2004-007223-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 Although a partner is not considered to own a specified percentage of the shares of a corporation held by a partnership, a favourable ruling was granted where a corporation issued sufficient voting preferred shares directly to each partner in order to comply with the formal requirements, of the Canada-U.S. Convention, Article X, para. 2(a), that the beneficial owner of the dividend must own at least 10% of the voting stock of the corporation paying the dividend. ...

11 October 1996 APFF Roundtable, 7M12910- APFF ROUND TABLE-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) Where specific anti-avoidance provisions are not applicable to a transaction or series of transactions that results in tax abuse, the general anti-avoidance provision may be applied even before taking tax conventions into account. ... Convention. ...