Search - convention

Claude Lemelin 957-2126 Chief, Policy and Research Section 910309 Application of Article XXVII, Paragraph 2 of the Canada-United Kingdom Income Tax Convention (the "Convention") to Capital Gains Your File No: 19023 This is in reply to your Memorandum dated January 18, 1991. We are of the opinion that Paragraph 2 of Article XXVII of the Convention does not apply to capital gains. ... Furthermore, the Convention refers to income and capital gains (i.e. gains) separately and thus recognizes and maintains the distinction between the two. for Director Reorganizations and Non-Resident Division Rulings Directorate Legislative and Intergovernmental Affairs Branch 000254 ...

Income Tax Convention (1980) (the "Convention") Guarantee Fees This is in response to your memorandum of March 24, 1988 wherein you have requested our opinion whether guarantee fees are considered interest for the purposes of Article XI, paragraph 4 of the Convention. ... Accordingly, since paragraph 214(15)(a) of the Canadian Income Tax Act (the "Act") deems guarantee fees paid to a non-resident to be interest for the purposes of Part XIII of the Act, it is our view that they also constitute interest for the purposes of the Convention. ...

19 June 1989 Income Tax Severed Letter RRRR152- Canada and Sweden—non-resident owned investment corporation Unedited CRA Tags Canada-Sweden treaty Article 23 This is in reply to your letter of March 29, 1989 concerning paragraph 2(d)(i) of Article 23 of the Canada-Sweden Income Tax Convention (1983) (the "Convention"). ... The issue is whether the dividend payment to Sweden from the NRO is exempt from Swedish tax under paragraph 2(d)(i) of Article 23 of the Convention. ... Based on our interpretation of the Article and the intention of the Convention, we are of the view that a dividend from the NRO to Swedenco in the situation set out in paragraph 2 above would probably not be exempt, by virtue of paragraph 2(d)(i) of Article 23 of the Convention, from Swedish tax. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XVIII Subject: E. William Abrahamson v. ... Income Tax Convention (the "Convention"), but amounts subsequently paid out of the IRA are considered to be pension benefits pursuant to subparagraph 56(1)(a)(i). ... Secondly, even if a tax free roll to an IRA under the Convention implied that subsequent payments from the IRA were taxable, the Convention was effective only from 1980 and was not in force in 1975. ...

For the payment to be taxable in Canada it must be considered to be "remuneration for labour or for services" within the meaning of those words in Article XI of the Canada-Netherlands Income Tax Convention (1957) (the "Convention"). ... Accordingly, in our opinion we would have great difficulty in sustaining a position that the retroactive severance pay in question constituted remuneration for labour or services for purposes of Article XI of the Convention. ... With respect to the retroactive pay and vacation settlements, it is our opinion that they do constitute remuneration for labour or for services within the meaning of Article XI of the Convention and therefore are subject to tax in Canada. ...

For the payment to be taxable in Canada it must be considered to be "remuneration for labour or for services" within the meaning of those words in Article XI of the Canada-Netherlands Income Tax Convention (1957) (the "Convention"). ... Accordingly, in our opinion we would have great difficulty in sustaining a position that the retroactive severance pay in question constituted remuneration for labour or services for purposes of Article XI of the Convention. ... With respect to the retroactive pay and vacation settlements, it is our opinion that they do constitute remuneration for labour or for services within the meaning of Article XI of the Convention and therefore are subject to tax in Canada. ...

Campbell XXXX Re: Canada-United States Income Tax Convention XXXX We have your letter of March 7, 1985, regarding the interpretation of Article XVIII of the above-noted tax convention. ... Article XVIII of the Convention sets out the rules applying to payments from pension plans. ... The Convention did not refer to lump sum payments and thus the domestic rate would have applied, except that the Convention indicated that no rate would be applied above 15 per cent. ...

Tier I benefits are the equivalent of U.S. social security benefits and are covered by paragraph 5 of Article XVIII of the Canada-United States Income Tax Convention (Convention). However, Tier II benefits are considered to be private pension plan benefits and are covered by paragraphs 1 and 2 of Article XVIII of the Convention. ... In summary, paragraph 1 of Article XVIII of the Convention would exempt from income in Canada amounts that would be excluded from taxable income in the United States if the taxpayer were a resident thereof. ...

Tier 1 benefits are equivalent to U.S. social security benefits and as such are subject to paragraph 5 of Article XVIII of the Canada- United States Income Tax Convention (1980) (the "Convention"). With aspect to Tier 11 payments, these benefits are considered to be private pension plan benefits and are addressed by Article XVIII of the Convention. ... The portion that is exempt pursuant to paragraph 1 of Article XVIII of the Convention is deductible by virtue of subparagraph 110(i)(f)(i) of the Act in computing taxable income. ...

Income Tax Convention (1980) (the "Convention"), notwithstanding that the period over which such payments are made is abbreviated to a period shorter than to age 90 of the recipient. ... Now that the budget has been passed, your inquiry concerns the question of whether an amount paid out of an RRIF in excess of the minimum amount as provided for in paragraphs 146.3(1)(b.1) and 146(1)(f) of the Act qualifies as a periodic pension benefit 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. ...