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D.O. 19 931147 Article XVIII Canada-Italy Income Tax Convention This is in response to your Round Trip Memorandum received by Fax on April 22, 1993 wherein you requested our opinion whether certain amounts which are included in income but are subsequently excluded from taxable income should be excluded from the term income for purposes of determining whether Italian social security payments are exempt from tax in Canada by virtue of paragraph 3 of Article XVIII of the Canada-Italy Income Tax Convention (the "Convention"). ... Paragraph 3 of the Convention provides that any social security payment arising in Italy and paid in a taxable period to an individual who is a resident of Canada shall be taxable only in Italy provided that the income of the individual for the period that is taxable in Canada in aggregate, excluding the said social security payments, does not exceed the amount of twenty four thousand Canadian dollars or twenty seven million Italian lira whichever is the greater. ...

Income Tax Convention (Convention) would produce a different result. It would appear that a lump sum payment out of an IRA would not qualify as a "pension" as that term is defined in paragraph 7 of the Protocol to the Convention since it is not a periodic payment. Accordingly, paragraph 1 of Article XI of the Convention would apply. ...

Where the property was owned prior to 1972, the taxable capital gain may be reduced as capital gains were not taxable prior to 1972. 3) The Canada- United States Income Tax Convention (1942) provided that most gains are taxable in the state of residence only. ... Income Tax Convention (1980) provides that gains on the alienation of real property situated in the other contracting state may be taxed in that state. Accordingly, Article XIII, paragraph 9 of the new Convention provides a transitional rule that in effect reduces the gain which is liable for tax in Canada by the portion of the gain attributable from date of acquisition to December 31, 1984. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XII 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. ... With respect to your additional comments, it is our view that: (a) Paragraph 3 of Article XII of the Canada-U.S. 1980 Tax Convention (the "U.S Convention") indicates that a copyright royalty or other like payment in respect of the reproduction of any literary work arising in a Contracting State (i.e. ... Convention. Furthermore, a work or book about finance or management could be covered by those definitions. ...

Income Tax Convention (1980) and Article X of the Canada-U.K. Income Tax Convention (1978) require tax to be withheld at the respective rates prescribed therein on the gross amount of the dividend paid notwithstanding that paragraph 148(2)(a) provides that an amount as, on account or in lieu of payment of, a policy dividend is deemed to be proceeds of disposition. ... The income tax conventions mentioned above provide for a reduced rate of withholding tax on dividend payments. However, since policy dividends are included in a nonresident's taxable income in Canada to the extent provided for in paragraph 148(2)(a), subsection 148(1) and subparagraph 115(1)(a)(iv), the income tax conventions are not relevant. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XI, XII This in reply to your memorandum of July 3, 1986 requesting two rulings with respect to the application of paragraph 212(1)(d) of the Income Tax Act (the "Act") to the above named taxpayer. ... Convention and after October 11, 1984 to withholding tax of 10% under Article XII of the new Canada-U.S. Convention. As a final comment we note, because of the volume, that it would be virtually impossible for this section to review all computer software licensing contracts, thus our review of the contracts submitted has only been cursory. ...

L'exclusion aux nouvelles règles de R.P.E. est qu'il faut que la convention écrite soit conclue avant le 26 février 1986 par un contribuable et son employeur ou ancien employeur et correspondant à des services rendus par le contribuable a) avant juillet 1986; ou b) après juin 1986, si le contribuable a l'obligation de différer la réception du montant et ne peut se soustraire à cette obligation en l'annulant ou autrement. Nous trouvons que le plan 24(1) Le régime peut être une entente d'échelonnement du traitement ou une convention de retraite, dépendant des faits. Nous sommes d'avis que 24(1) A l'alinéa k) de la définition de convention de retraite, on exclut les ententes d'échelonnement du traitement, qui donne comme résultat que si le plan est une entente d'échelonnement du traitement, il ne peut être considéré une convention de retraite. ...

Aylward 920300 Article X of the Canada-Switzerland Income Tax Convention (1976) (the "Convention") This is in response to your memorandum dated January 29, 1992 concerning the interpretation of paragraph 6 of the above Article. ... Paragraph 6 of the Convention provides that the term "earnings" for the purposes of determining branch tax: "... does not include profits attributable to a permanent establishment in Canada of a company which is a resident of Switzerland earned in a year during which the business of the company was not carried on principally in Canada. ... In our view these other criteria would also be relevant in determining whether or not the business of a company is carried on principally in Canada for the purposes of paragraph 6 of Article X of the Convention. ...

L'exclusion aux nouvelles règles de R.P.E. est qu'il faut que la convention écrite soit conclue avant le 26 février 1986 par un contribuable et son employeur ou ancien employeur et correspondant à des services rendus par le contribuable a) avant juillet 1986; ou b) après juin 1986, si le contribuable a l'obligation de différer la réception du montant et ne peut se soustraire à cette obligation en l'annulant ou autrement. Nous trouvons que le plan 24(1) Le régime peut être une entente d'échelonnement du traitement ou une convention de retraite, dépendant des faits. Nous sommes d'avis que 24(1) l'alinéa k) de la définition de convention de retraite, on exclut les ententes d'échelonnement du traitement, qui donne comme résultat que si le plan est une entente d'échelonnement du traitement, il ne peut être considéré une convention de retraite. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XII Dear Sirs: This is in reply to your letter of March 5, 1990 concerning Canadian withholding tax on payments made to United States residents for the right to use computer software programs in Canada. ... The term “royalties” is defined in paragraph 4 of Article XII of the Canada-United States Income Tax Convention (1980) (the “Convention”) and in our view, it includes payments described above for the use of computer software programs. ... For additional information on Article XII of the Convention, we are enclosing a copy of the Article plus the technical explanation on the Article. ...