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-Canada convention will enter into force shortly, we are seeking your views in a few situations of concern to us. 1. ... As the 1980 Convention has no provision analagous to paragraph 5 of Article XI of the 1942 Convention, will you please advise us of the date upon which the statutory authority for Canada's Income Tax Regulation 203 will cease to exist. Paragraph 6 of Article XXX of the 1980 Convention appears to suggest it could be at different times for different taxpayers. 5. ...

Plus précisément vous désirez savoir si l'expression "une convention y relative" employée au paragraphe 256(1.1) de la Loi peut englober une convention entre actionnaires. ... Nous sommes d'avis que l'expression "une convention y relative" employée au paragraphe 256(1.1) de la Loi pourrait englober une convention unanime des actionnaires régie par la Loi sur les compagnies. Dans un tel cas, une convention unanime des actionnaires qui aurait pour effet de restreindre le pouvoir des administrateurs dans la déclaration du dividende de sorte qu'il soit déclaré par ceux-ci selon un taux fixe conformément aux termes de ladite convention pourrait faire que les exigences de l'alinéa 256(1.1)c) de la Loi sont rencontrées dans la mesure où il est démontré que le taux indiqué dans la convention est un pourcentage déterminé qui ne fluctue pas. ...

Tax Convention (Convention)? (3) As Articles V and XIV of the Canada-U.S. Income Tax Convention (U.S. Treaty) are substantially similar to Article V and XIV of the Convention would your replies to Opinion #1 and #2 above be the same if XXXX and his Corporation were U.S. residents? ... Since the words of Articles V and XIV of the Convention are substantially similar to the related articles in the U.S. ...

Income Tax Convention (Convention). We have reviewed the proposed draft legislation as set out in Bill C-64 which received first reading on June 9, 1987. ... Such withholding tax would be subject to any relief granted to a non-resident by virtue of a provision contained in a tax convention or agreement with another country. As you are aware, there have been no tax cases under the Convention to provide us with guidelines as to what constitutes a "retirement plan" for purposes of paragraph 3 of Article XVIII of the Convention. ...

XXX This is in reply to your round-trip memorandum of November 24, 1983, wherein you requested our comments on whether Article XIV of the Canada-Italy Income Tax Convention (the Convention) applies to exempt XXX from tax in Canada in respect of the income he derived under the Shareholders Agreement dated July 16, 1981. ... While "fixed base" is not defined it is roughly synonymous with "permanent establishment" (which is defined in Article V of the Convention). ... XXX it would of course be a question of fact, whether (and to what extent) the payments were effectively connected thereto for the purposes of Article XII(5) of the Convention. ...

6 March 1984 Income Tax Severed Letter RRRR89- Non-resident withholding tax—Canada-Italy treaty Unedited CRA Tags 212(1)(d)(i), Canada–Italy Income Tax Convention Article XIV XXX This is in reply to your round-trip memorandum of November 24, 1983, wherein you requested our comments on whether Article XIV of the Canada-Italy Income Tax Convention (the Convention) applies to exempt XXX from tax in Canada in respect of the income he derived under the Shareholders Agreement dated July 16, 1981. ... While “fixed base” is not defined it is roughly synonymous with “permanent establishment” (which is defined in Article V of the Convention). ... XXX it would of course be a question of fact, whether (and to what extent) the payments were effectively connected thereto for the purposes of Article XII(5) of the Convention. ...

Perrin Non-Resident Project Team XXXX Article XVII Canada-United Kingdom Income Tax Convention (the Convention) Paragraph 212(1)(h) of the Income Tax Act (the Act) This is in reply to your recent memorandum questioning the amount on which withholding tax is exigible where a U.K. resident receives Canadian source pension income (e.g. $25,000) which he causes to be transferred in part (e.g. $5,000) (pursuant to an authorization in prescribed form from the payer) to an RRSP, under which the U.K. resident is the annuitant. ... We understand that this is the intent of the Article; i.e., only if an amount is subject to tax under Part XIII of the Act, do we look to the convention for exemption. ... However, we note your concern that if Part XIII tax is not levied in respect of such transferred amounts, subsequent payments out of these plans may not be taxable, where the non-resident has arranged his affairs to take advantage of the diminimus rule in Article XVII of the Convention (which is also present in Article XVII of the Canada-New Zealand Income Tax Convention and Article XVIII of the Canada-Italy Income Tax Convention). ...

Department of National Revenue response Whatever the effect of a tax convention at the international level, it is well established that these conventions have the force of law in Canada once they have been enacted in the appropriate domestic legislation. ... Consequently, every tax convention must be the subject of positive legislation in order for it to have the force of law in Canada. It should be noted in connection with this that subsection 10(6) of the 1971 Income Tax Application Rules explains that any reference in a tax convention to a rate higher than the rate stipulated in a tax convention is, with respect to the payments made to a resident of the other country, to be interpreted as a reference to the rate stipulated in the tax convention. ...

Income Tax Convention (1980) (the "Convention") income derived by a religious, scientific, literary, educational or charitable organization resident in the U.S. is exempt from tax in Canada to the extent that such income is exempt from U.S. tax. ... If Article XXI of the Convention and paragraph 149(1)(1) would not exempt the U.S. entities from tax, then in our view, Article VII of the Convention would also probably not exempt them from tax in Canada since the U.S. entities would have a permanent establishment in Canada. "Permanent Establshment" is defined by Article V of the Convention and includes a workshop. ...

Income Tax Convention (1980) (the "Convention"). Thus, in your view, withholding in respect of such stipulated predetermined payments made to a resident of the United States should be reduced by the Convention to 15% if the recipient is the beneficial owner of such payments. 2) In your view if a resident of the United States draws any amount out of a RRIF in excess of the minimum amount as now provided for in paragraphs 146.3(1)(b.1) and 146.3(1)(f) of the Act, the correct withholding rate is 15%. ... Item 2) concerns the question of whether an amount paid out of a RRIF in excess of the minimum amount qualifies as a periodic pension payment for purposes of the Convention. ... In addition to examining all the facts this question may require a determination of the intent of the legislators and drafters of the Convention. ...