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Arsenault (613) 957-2126 24(1)19(1) March 20, 1991 Dear Sirs: Re: Subparagraph 3(d) of Article XI of the Canada-United States Income Tax Convention, 1980 (the "Convention") This is in reply to your letter dated February 7, 1991 whereby you requested our opinion concerning the meaning of the term "persons dealing with each other not at arm's length" in subparagraph 3(d) of Article XI of the Convention. In our opinion, by virtue of paragraph 2 of Article III of the Convention, the term "persons dealing with each other not at arm's length" has the same meaning as it does for purposes of the Canadian Income Tax Act (the "Act") as regards the application of the Convention by Canada. Therefore, for purposes of the application of the Convention by Canada, the provisions of section 251 of the Act will be applicable in determining whether persons are not dealing with each other at arm's length. ...

15 July 1992 Income Tax Severed Letter 9204805- Does Association of Racing Car Teams Qualify as a League 920480 24(1) K.B.Harding 957-2111 Attention: 19(1) July 15, 1992 Dear Sirs: Re: Article XVI of the Canada-U.S Income Tax Convention (the "Convention") This is in reply to your letter of February 12, 1992 wherein you requested our opinion concerning Article XVI of the Convention. ... You questioned the meaning of the word "league" as used in paragraph (3)(a) of Article XVI of the Convention and how that paragraph would apply to the above situation. ... It is our understanding that the exemption from the application of paragraphs 1 and 2 of Article XVI of the Convention provided in paragraph 3 of Article XVI of the Convention was intended as a concession to hockey and baseball players etc. where the teams are required to compete in all games in a regular schedule. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XIX Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. ... Convention (the "Convention"). It should be noted that in paragraph 2 of Article XXIX of the Convention, the United States preserved its right to tax its citizens as if there was no Convention, however, paragraph 3 of that Article of the Convention, also provides that even for its citizens the United States will honour its commitment under certain articles of the Convention, including Article XIX of the Convention. ... In summary, unless the locally engaged staff in the United States take positive steps to renounce their Canadian citizenship we are of the view that since dual citizens continue to be citizens of Canada, Canada maintains its right to tax such individuals since they continue to meet the conditions set out in Article XIX of the Convention. ...

Income Tax Convention (1980) applies strictly to capital gains, or whether it encompasses "income" gains as well. ... Income Tax Convention (198) or would it be taxable in Canada under another provision of the Treaty? ... Tax Convention (1980) (hereinafter "Tax Convention"). The lump sum payment made to the U.S. resident by the insurance company would not fall under the provisions of Article XVIII of the Tax Convention for the reason that to the extent that the "life.insurance policy in Canada" may be viewed as a "annuity" the lump sum payment would not fall within the term "annuities" as defined in paragraph 4 of Article XVIII since it would not constitute a periodic payment. ...

We are not entirely convinced that in the hypothetical situation set out in your letter that the individual would be a resident of the United Kingdom for purposes of Article IV of the Canada-United Kingdom Tax Convention (Convention). ... We have reviewed the terms of the Convention and it is our view that there is nothing in the Convention which restricts Canada's right to tax an individual, who is resident in both Canada and the United Kingdom, but for purposes of the treaty is deemed to be resident of the United Kingdom, on income received from a third country. ... " Since the Canada-United States Income Tax Convention is modelled on the OECD model, we confirm the argument expressed in your letter. ...

Toussaint Attention: XXXX Dear Sirs: This is in reply to your letter dated August 19, 1985, concerning the treatment of software licence payments under the Canada-United States Income Tax Convention (1980) (the new "Convention"). ... It was therefore decided that payments made for the use of software programs could not be exempt under Article XIII C of the former Convention or under Article XII(3) of the new Convention because they are not copyright royalties or payments in respect of the right to produce or reproduce literary, dramatic, musical or artistic work. ... Yours sincerely, Director Provincial and International Relations Division CGT/ jb Article XIII C- Canada-United States Income Tax Convention (New) ...

However, the old Convention, Article VIA, exempted such periodic payments from withholding tax. ... Commuted value to Beneficiary or Lump Sum to Annuitant The new Convention does not limit the tax to 15% on lump sum payments. ... While Article VIA of the old Convention does not exempt lump sum payments, Article XI of that Convention does provide for a 15% withholding rate. ...

Income Tax Convention (1980) (Convention) to provide guidelines as to what would constitute a "retirement plan" for purposes of paragraph 3 of Article XVIII of the Convention. ... Income Tax Convention (Convention). We are of the view that the term "periodic pension payment" in the Convention means a series of payments made for the purpose of providing the recipient with retirement income throughout his life or a greater part of his life. ... Tax Convention was added to clarify this matter for purposes of that Article. ...

9 December 1991 Income Tax Severed Letter 913233A F- Rents from Movable Property Unedited CRA Tags Treaty Norway Article 6, Treaty Norway Article 11   913233 Rents from Movable Property Canada-Norway Income Tax Convention (the "Convention") This will follow up a telephone conversation with Mr. ... Generally, all amounts received by a resident of Norway from a resident of Canada would be included in the profits of the enterprise of the Norwegian resident for the purposes of Article 6 (Business Profits) of the Convention unless such amounts are carved out by another article of the Convention.  Since the definition of royalties in Article 11 (Royalties) of the Convention does not include bareboat rents paid or credited by a resident of Canada to a resident of Norway such amounts will fall within Article 6 (Business Profits) of the Convention and will be exempt from tax in Canada unless the Norwegian resident carries on business in Canada through a permanent establishment. ...

Income Tax Convention (Convention). Subsection 212(1)(b) of the Income Tax Act (the "Act") requires every non-resident of Canada to pay an income tax of 25% on every amount that a resident of Canada pays or credits to him. ... Since paragraphs 1 and 2 of Article XI of the Convention do not deal with interest arising in the United States or a third country and paid to a resident of the United States, such an item of income will fall within paragraph I of Article III of the Convention. ... It should be noted that such an exemption is applicable to this particular Convention and its application to other income tax conventions or agreements may not produce the same result. ...