Search - convention

17 July 1985 Income Tax Severed Letter July 17, 1985 Attention XXXX Dear Sirs: This is in reply to your letter dated May 9, 1985, concerning the meaning of the word "gain" as used in Article XIII of the new Canada-United States Income Tax Convention (1980) (Convention). ... Since the term "income" is not defined in the Convention, it takes on the meaning which it has under domestic law. ... When interpreting a passage of a Convention which is not clear, the Income Tax Convention Interpretations Act permits the interpreters to review the background papers and the intention of the negotiators when drafting the Convention. ...

Tax Convention Canada-U.S. Tax Treaty:Art. X, XI, XII 922332 24(1) K. ... Income Tax Convention (the "Convention") This is in reply to your letter of July 28, 1992 wherein you requested our opinion concerning Article XXII of the Convention in respect to the following hypothetical situation. ... Interest paid by a U.S. resident, for the purposes of the Convention, will be deemed to arise in the United States pursuant to paragraph 6 of Article XI of the Convention. ...

The entry into force of the proposed Convention between Canada and the United States can only take place when all issues covered by the Convention have been finalized. ... On June 14, 1983, the two countries signed a Protocol to amend the earlier Convention. ... It should be noted that the current Canada-United States Income Tax Convention remains in effect until it has been superceded by the proposed Convention. ...

It is our view that it is arguable that the term "income" used in Article 21 of the Canada-Australia Income Tax Convention (1980) does not include capital gains since the Convention mentions gains specifically where it is intended that these be included. ... In addition, there arises no inconsistency between the provisions of the Income Tax Act and the Convention which would cause the Convention to prevail pursuant to subsection 6(2) of the Canada-Australia Income Tax Convention Act, 1980, so as to limit Canada's right to tax the capital gains in question. ... In summary, we are of the view that under the Convention with Australia, Canada has not given up its right to tax capital gains. ...

Income Tax Convention (the "Convention") This is in reply to your letter of November 13, 1992. ... The partners are all residents of the United States for the purposes of the Convention. ... The Convention will not affect Canada's right to tax under that provision. ...

Income Tax Convention (1980) (the "current Convention") entered into force on August 16, 1984 you were of the view that the statement concerning such royalties pertained to the current Convention since IC 77-16R2 was issued more than three months after the entry into force of the current Convention. ... Tax Convention. Payments under perpetual or unlimited term agreements are not affected by this interpretation. ... Income Tax Convention (1942) (the "1942 Convention"). It has been our opinion since the Saint John Shipbuilding case (80 DTC 6272) that payments made to U.S. residents for the use of computer software under perpetual or unlimited agreements would not constitute rental or royalties for the purpose of the 1942 Convention and therefore such payments would not be subject to withholding tax. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XI, XXI 922104 24(1) K.B. Harding 957-2111 Attention: 19(1) October 20, 1992 Dear Sirs: Re: Article XI of the Canada-U.S. ... Income Tax Convention (the "Convention") clearly provides that for purposes of Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information Article XI of the Convention that interest is deemed to arise in the United States and not in Canada in the situation described above. ... Since the sourcing rule set out in paragraph 6 of Article XI is applicable only for the purposes of Article XI of the Convention, it does not change the Canadian sourcing rules for purposes of Article XXII (Other Income) of the Convention. ...

Tax Convention (the "Convention"). It is our opinion that the rate of withholding tax on the payments received from your RRIFs would be 25% of the gross amount and that paragraph 2(a) of Article XVIII of the Convention would not apply to reduce the withholding rate to 15%. ... Since the term "periodic payment" is not defined in the Convention, we look to the ordinary meaning under the Canadian Income Tax Act. ... As a consequence paragraph 2(a) of Article XVIII of the Convention would not apply to reduce the rate of withholding tax. ...

Income Tax Convention (the Convention) in the following hypothetical fact situation: 1. ... It is your view that Article XI(2) of the Convention provides that the tax is reduced to 15% where the beneficial owner of the interest is a U.S. resident. In addition, Article XXI(2) of the Convention provides that interest derived by a United States exempt entity will be exempt from Canadian tax. ...

Article VI of the Convention leaves open the question of taxation of income from real property by the State of residence by using the permissive word "may" in the Convention. ... The country of situs has clearly maintained its right to tax gains from the alienation of real property in Article XIII of the Convention and business profits from such alienation, where there is a permanent establishment, in Article 7 of the Convention. ... The Technical Explanation to paragraph 6 of Article VII of the Convention explains the relationship between the provisions of Article VII and other provisions of the Convention. ...