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17 May 2012 IFA Roundtable, 2012-0444161C6- Competent Authority Agreements-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 no deferral agreement where gain exempted In responding to a query which noted that the Canada-U.S. Treaty, unlike other Conventions, specifically referred to deferral agreements of competent authorities being entered into to avoid double taxation, and asked whether "the Canadian Competent Authority [would] be willing to enter into a deferral agreement under one of these other treaties where the profit, gain or income is exempted or excluded from taxation under the domestic laws of the residence," CRA responded negatively:...the Canadian Competent Authority requires taxpayers seeking a deferral agreement to demonstrate that the profit, gain or income for which an agreement is being sought is only deferred- not exempted or excluded- from taxation under the domestic laws of the residence state. ...

28 November 2010 Annual CTF Roundtable, 2010-0387001C6- Canada-US Treaty LOB- Treatment of Interest-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A interest paid out of connected business Canco has both qualifying active business income from a Canadian business that is connected with an active trade or business (the connected business) of its wholly-owning US parent (USco) and also non-qualifying income of some kind, and pays interest to USco (which is not a qualifying person) on a debt owing to USco. ... XXIX A, para. 3 of the Canada-US Convention if (1) the payment is in respect of indebtedness that was incurred exclusively for the purpose of earning income from Canco's connected business, or (2) Canco can establish that the interest payment was funded out of the earnings of the connected business. ...

30 November 2010 Annual CTF Roundtable, 2010-0386391C6- Branch Tax-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 In response to a query as to whether the branch tax reduction in Art. X(6) of the Canada-US Tax Convention is available to a fiscally transparent LLC that is wholly-owned by US-resident individuals, CRA stated that such Treaty benefits may be claimed by an LLC on behalf of its members with respect to an amount of profit attributable to a Canadian branch only if the amount is considered to be derived, pursuant to Art. ...

17 May 2012 IFA Roundtable, 2012-0444151C6- Hybrid Partnerships and Branch Tax Liability-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A The two partners of a partnership which has elected to be a domestic corporation for Code purposes are: a corporation which is resident in the U.S. for purposes of the Canada- U.S. Income Tax Convention; and a corporation resident in a non-Treaty country. ...

LLC-- summary under Article 26 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 26 no relief under Art. 26(1) of US Treaty re LLC with U.S. ... XXVI(1) of the Convention, on the basis that, from the U.S. perspective, the member is double-taxed on the same U.S. source income? ...

28 November 2010 CTF Roundtable Q. 9, 2010-0387091C6- Late filing of T1 returns-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Suppose a US-resident taxpayer provides services in Canada for 130 days between 1 October to 28 February, does not anticipate providing further services in Canada, and obtains regulation 105 waivers for services provided in that period. ... V(9)(a) of the Canada-US Convention retroactively to impute a permanent establishment. ...

7 May 2004 IFA Roundtable Q. 1, 2004-0072131C6- IFA Round Table 2004 Q.1- 212(13.1)(a)-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 In the context of a "tower" structure, a partnership of which two taxable Canadian corporations are the partners borrows money from a U.S. financial institution in order to acquire an interest in a U.S. limited liability company. ... Convention would apply to deem the interest to arise in Canada and that generally the second sentence of para. 6 of Article XI would not apply to re-source such interest to the U.S. unless the CRA was convinced that (i) investing in the interest in a wholly-owned subsidiary (i.e., the LLC in this case) of the partnership constituted a business carried on by it through a permanent establishment in the U.S. ...

17 May 2012 IFA Roundtable, 2012-0444151C6- Hybrid Partnerships and Branch Tax Liability-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 The two partners of a partnership which has elected to be a domestic corporation for Code purposes are: a corporation which is resident in the U.S. for purposes of the Canada- U.S. Income Tax Convention; and a corporation resident in a non-Treaty country. ...

LLC-- summary under Article 29 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29 single member LLC with dual resident member could elect to be C-Corp and S-Corp, and then consider applying for relief under Art. 29(5) A single-member disregarded U.S. limited liability company (“SMLLC”), whose member is a resident of Canada, is factually resident in Canada and, thus subject to Part I tax, whereas U.S. source income (e.g., business income form a U.S. permanent establishment) would also be subject to U.S. income tax in the hands of the member, without the SMLLC being entitled to claim any foreign tax credit for such U.S. tax paid by its member. Is there Convention relief from double taxation? CRA noted that if the member was a dual resident or U.S. citizen, and the LLC elected to be taxed as an S-Corp after electing to be taxable as a C-Corp, it would be subject to pass-through taxation for U.S. income tax purposes like a typical disregarded US LLC. ...

27 October 2020 CTF Roundtable Q. 5, 2020-0864281C6- Article IV:6 of the Canada-US Treaty-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 choice between application of France and US Convention to dividends paid by Canco at bottom of multi-tier structure A partnership whose partners are resident in the U.S. and in other countries with which Canada does and does not have a treaty owns a French entity (that is fiscally transparent for U.S., but not Canadian or French purposes) that earns dividends and interest from a Canadian company. ...