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Paragraph 8 of IC76-12R3 states: "(u)nder most conventions, however, the business profits provisions are considered to encompass reasonable management fees and to exempt them from Part XIII tax unless a specific article provides otherwise. ... Conventions which specifically provides for a withholding on reasonable management fees. ... We would greatly appreciate knowing Revenue Canada's interpretation of the Conventions, as they relate to the above situations, and any further enlightenment on the subject. ...

McCorkle Canada-Israel and Canada-France Tax Conventions In our memorandum of January 25, XXXX our use of the wording "is... being taxed" was intended to have the same meaning as the wording "is taxable" that is used in paragraph 2 of Article XI of both the France and Israel tax conventions. ... Paragraph 2 of Article XI in each of these conventions provides that Canada can tax this interest in accordance with the provisions of our law but if the recipient is a resident of the treaty country (France or Israel as the case may be) and provided such interest is taxable in the home state, the non-resident person is eligible to have his Part XIII tax determined at a rate not exceeding 15%. 2. ... The payer should withhold tax at 25% (paragraph 212(1)(b)) unless he has information that clearly indicates that the non-resident recipient (who is also beneficial owner) acts the requirements of paragraph, 2 of Article XI of the pertinent convention.. ...

Short: XXXX is concerned with resolving the following problem relating to paragraph 7 of Article XI of the Canada-United Kingdom Convention. ... The technical interpretation of the Convention and the Act is that this interest is subject to 25% withholding tax, even when the interest is physically paid by the United Kingdom branch to the United Kingdom lender. ... It is not certain that the existence of an "other income" article would solve the problem as it could be argued that interest is "an item of income" that is dealt with in another article of the Convention. ...

Donnelly XXXX Re: Canada-United Kingdom Convention Article X We would appreciate your assistance in obtaining clarification of United Kingdom taxation of dividends received by a discretionary trust when they are subsequently distributed to a Canadian beneficiary. ... It would appear to us that in the example, the "gross-up for foreign taxes paid" is not the same as the "tax credit" referred to in Article X of the Convention. 3. ... For Canadian tax purposes, our initial conclusion with respect to the tax position of the Canadian beneficiary is (a) the $156 is dividend income; (b) the $144 is not a "tax credit" for purposes of Articles X and XXVII of the Convention; and (c) for foreign tax credit purposes in Canada we will recognize foreign tax paid in respect of the dividend of 15% of $156. ...

Toussaint Dear Sirs: This is in reply to your letter dated August 19, 1985, wherein you requested our opinion on the application of Article XI(3)(b) of the Canada-United States Income Tax Convention (1980) ("Convention") where interest is paid by a resident of Canada to a Canadian resident estate before it is distributed to a United States resident beneficiary. ... It is our understanding that Article XXII (2) of the Convention recognizes among other things that in Canada the income distributed` by a Canadian estate or trust to a resident of the United States is a separate type of income, i.e. estate or trust income, which has not the same character in the hands of the estate or trust. ... Based on the above, it is our view that the provisions of Article XI(3)(b) of the Convention cannot apply to exempt from taxation in Canada, an amount paid to a resident of the United States by an estate or trust resident in Canada even though this amount would have been exempted pursuant to that Article if it had been received directly by the non-resident beneficiary. ...

Paragraph 4(a) of Article XIII of the Canada United Kingdom Income Tax Convention states that: "Gains from the alienation of shares(...)deriving their value... from immovable property situated in a Contracting State... may be taxed in that State. ... However, most of our recent conventions, other than the United States, contain a similar clause, and we request that you provide us with your views on how this situation is to be interpreted in both the United Kingdom Convention and other conventions with similar wording. ...

Tax Convention, which we discussed in some detail on earlier occasions. ... There is some uncertainty on our part, at least, as to the precise manner in which United Kingdom authorities give effect to the exemption in Article XVII of the Convention. ... XXXX We are not particularly satisfied with the arbitrary reduction of the paragraph 126(1)(a) amount which is currently in vogue, which causes repeated problems, but we have found no more satisfactory method of dealing with the exemption in paragraph 1 of Article XVII of the Convention. ...

21 September 1988 Income Tax Severed Letter September 21, 1988 The Director General Specialty Rulings Directorate Revenue Canada- Taxation 875 Heron Road Ottawa, Ontario K1A 0L8 Dear Sir Non-Resident Withholding Tax and Article XXII of the Canada-US Tax Convention On behalf of one of our clients, we are writing to request your confirmation of our understanding of the application of paragraph 2 of Article XXII of the Canada-US Tax Convention of 1980 so far as it applies to the provisions of paragraph 212(l)(c) and subsection 212(11) of the Income Tax Act (as amended by Bill C-139). ... This would be consistent with paragraph 16 of IT-465R which states: "Where a non resident beneficiary is a resident of the United States, Article XXII of the Canada-US Income Tax Convention (1980) exempts from Part XIII tax any portion of the trust's income paid or credited to the non-resident that can be shown to be out of income received from sources outside Canada" Would you also confirm that "income" referred to in Article XXII includes taxable capital gains (per Paragraph 17 of IT-465R) 2. Although a unit of the Trust will constitute "taxable Canadian property" to a non-resident unit holder pursuant to subparagraph 115(1)(b)(vii) of the Act, Article XIII, paragraph 4 of the Convention will, in our view, exempt a non-resident unit holder from Canadian tax on any gain realized on the disposition-of the unit. ...

Income Tax Convention (1980) (the "Convention") defines the term "royalties (for purposes of that article) to mean"...Payments of any kind received as consideration for the use of, or the right to use, any copyright of literary... work... or for the use of, or the right to use, tangible personal property or for information concerning industrial, commercial or scientific experience... ... Accordingly the definition of royalties in the Convention is broad enough to permit Canada to withhold its tax on payments made to a resident of the United States for the use of computer software. ... We are enclosing copies of Article of the Convention, the technical explanation with respect to that article and paragraph 212(1)(d) of the Act which imposes the tax on the computer software. ...

Income Tax Convention (Convention). While it is arguable that an IRA fell within subsection 75(2) prior to 1982, it is doubtful that any Canadian taxpayer has included such amounts in their income. ... It is our position that for purposes of the Convention that amounts received out of an IRA will be a payment from a retirement plan and therefore fall within Article XVIII of the Convention. ...