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Issue Whether a paragraph 1(b) of Article XVIII entitles a non-resident taxpayer to make a 217 election and deduct the $10,000 exemption provided for in the Convention. ... With respect to the Canada-Italy Convention, the legislators effectively wrote the elective provisions of section 217 of the Act into paragraph 1(b) of Article XVIII of the Convention for purposes of determining the applicable tax rate. ... Subparagraph 110(1)(f)(i) provides a deduction in computing taxable income for an amount exempt from income tax in Canada by virtue of a provision in a tax convention or agreement with another country that has the force of law in Canada. ...

Tax Convention Canada-U.S. Tax Treaty:Art. X, XI, XXI, XXIX Subject: XXX the "Trust") This is further to our Memorandum to you dated October 1, 1990 and the telephone discussion on October 12, 1990 between Mr. ... Wilson advised that your original inquiry as to whether a trust whose income in exempt in its hands and in the hands of the beneficiaries can be a "resident of a Contracting State" for treaty purposes was meant to relate to a trust that did not meet the definition of a religious, scientific, literary, educational or charitable organization under Article XXI of the Canada- United States Income Tax Convention, 1980 (the "Convention") but is exempt from taxation in the United States. ... However, provided the exemption from tax does not arise simply from the flow through of the trust's income to its beneficiaries and provided paragraph 6(a) of Article XXIX of the Convention does not apply, we see no reason not to generally apply our position to trusts. ...

Income Tax Convention. As a result of several enquiries concerning the residency status of exempt organizations created in a country with which Canada had a tax treaty, the matter was reviewed by this Division. ... However, we are prepared to issue the amended interpretation you requested to put the wording in line with paragraph 1 of Article XXI of the Convention. ... " It should be noted that the charitable organization must qualify as a resident of Canada or the United States in order to fall within the wording of Article XXI of the Convention. ...

Shea-DesRosiers (613) 957-8953 A l'attention de 19(1) Le 18 novembre 1992 Mesdames/Messieurs, Objet: Convention de retraite en vertu du paragraphe 248(1) de la Loi de l'impôt sur le revenu (la "Loi") et application du paragraphe 75(2) de la Loi à une telle convention La présente fait suite à votre lettre du 27 octobre 1992 concernant l'application du paragraphe 75(2) de la Loi à une fiducie régissant une convention de retraite qui contient une clause de remboursement d'un surplus à l'employeur. Nous sommes d'avis que le paragraphe 75(2) de la Loi s'appliquerait à une fiducie régissant une convention de retraite qui contient une telle clause puisque les alinéas 75(3)a) et d) de la Loi n'excluent pas, de l'application du paragraphe 75(2) de la Loi, une fiducie régissant une convention de retraite. ... Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information Nous avons avisé notre division des modifications courantes et des règlements du problème que soulève l'application du paragraphe 75(2) de la Loi aux fiducies régissant les conventions de retraite dans une situation telle que celle décrite ci-haut afin qu'il soit porté à l'attention du ministère des Finances. ...

Income Tax Convention (1980) (the "Convention"), notwithstanding that the underlying source of that item is a motion picture film. This exemption, however, only relates to such payments made on or after October 1, 1984 as provided by paragraph 2(a) of Article XXX of the Convention. In our view, the above position is in accord with the comments on paragraph 3 of Article XII of the Convention in the U.S. ...

However, pursuant to Article XIIIC of the 1942 Convention and Article XXX of the 1980 Convention, payments made before Network's first taxation year beginning on or after January 1, 1986 will be exempt from withholding tax, except any portion of the payments that are in respect of programming based on motion picture films. To the extent that the payments are in respect of programming based on motion picture films, the withholding tax is limited to 15% pursuant to Article XI of the 1942 Convention. The Part XIII withholding tax on payments made to Network after that time will be reduced to 10% pursuant to Article XII of the 1980 Convention. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XII, Canada-France Income Tax Convention 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. ... Income Tax Convention (1980) and the Canada-France Income Tax Convention (1975) to exert from Part XIII withholding tax, royalties payable by a Canadian distributor to either an unrelated U.S. producer corporation or to an unrelated French producer corporation for the right to distribute in Canada various videotapes and videodisc products for home use. ... Income Tax Convention (1980), royalties exempt pursuant thereto include royalties related to the sale or rental of videotapes for private viewing. ...

4 February 1981 Income Tax Severed Letter Dear XXX This is in reply to your letter of December 29 concerning the Canada-Australia Income Tax Convention (1980) (the Convention) which has yet to be ratified. ... We agree that in the absence of the effect of a tax convention, subsection 2(3) of the Income Tax Act would apply and tax would be payable by Mr. and Mrs. ... We have perused the Convention and there is no specific Article dealing with the alienation of capital property you have described. ...

Fioravanti (613) 995-1767 December 17, 1984 Dear Sir: This is in reply to your letter of September 7 requesting our interpretation of the effective rate of "branch tax" provided by Section 219 of the Income Tax Act in light of the 1960 Canada- U.S. lax Convention. You raise the question that in view of the provisions of Subsection 11(4) ITAR and in view of the intention to equate the rate of branch tax to the rate of dividends paid by a subsidiary to its parent, will the provisions of Subsection 11(4) ITAR and the relevant provisions in the new Convention be interpreted to permit a reduction ire the branch tax from 15% to 10% from October 1, 1964 to the effective date of paragraph 6 of Article X of the new Convention (being the first fiscal year of the payer non-resident corporation commencing on or after January 1, 1985): or, does the fact that any additional tax is limited by paragraph 6 of Article X of the new Convention to 10% result in Subsection 11(4) ITAR being inapplicable notwithstanding the fact that the limitation contained in paragraph 6 of Article h of the new Convention does not have effect in respect of the taxation year in respect of which the branch taxes are required to be paid where such taxation year did not commence on or after January 1, 1985? We agree with your latter analysis that the branch tax will not be reduced to 10% prior to the period set out in paragraph 2(b) of Article XXX of the Convention. ...

Income Tax Convention (Convention) This is in reply to your memorandum of November 16, 1987 concerning the treatment of recapture of capital cost allowance under the Convention. It continues to be our general view, for the reasons set out in the letters attached to your memorandum, that Article XIII of the Convention will have application to capital gains derived by a resident of the United States whereas Articles VI, VII, VIII and XIV of that Convention will apply to tax the income, including the recapture of capital cost allowance, which a non-resident earns in Canada. Paragraph 8 of Article XIII of the Convention permits the Canadian competent authority, in the situations set out therein, to agree to defer the recognition of the profit, capital gain or income (including C.C.A.) for Canadian income tax purposes in order to avoid double taxation. ...