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Senécal 613 957-2074 le 24 novembre 1989 Monsieur, Conformément au paragraphe 3 de l'article XXIV de la convention fiscale entre nos deux pays signée le 22 décembre 1975, nous souhaitons clarifier les modalités d'application de cette convention eu égard à certains contrats mixtes portant sur la fourniture d'équipements et la prestation de services reliés. ... Chacune de ces composantes doit être traitée différemment selon les règles appropriées, à savoir:- les fournitures importées seront imposables uniquement au Canada, aucun crédit d'impôt n'ayant donc à être consenti pour éliminer la double imposition;- le cas échéant, la rémunération d'études techniques ou économiques réalisées au Canada et, de ce fait, imposable au Canada, sera aussi sujette au Maroc à une imposition ne pouvant excéder 10% et ce conformément au paragraphe 2 de l'article XII de la convention. ... Cette interprétation des dispositions de la convention s'appliquera aux encaissements réalisés à compter du 1 janvier 1988. ...

In such a situation the Canada-United States Tax Convention, (1980) (the "Convention") provides that the United States may tax business income attributable to that permanent establishment. In addition Particle XIII of the Convention provides that the United States may tax gains derived by a resident of Canada from the alienation of real property situated in the United States. If you wish to inquire about the taxation of the U.S partnership income in the U.S. or about waiving the U.S. withholding, tax wc recommend that you contact the The Convention provides for a foreign tax credit in Canada, subject to any foreign tax credit limitation in Canadian tax law, for income tax paid to the United States on profits, income or gains earned in that country. ...

By virtue of Article 18 of the Canada_Australia Income Tax Convention (1980), this 25% rate will be reduced to 15% where the funds received out of an RRSP or RRIF are received in the form of an annuity. Since the work "annuity" is not defined in the Convention, Article 3 thereof states that an annuity sourced in Canada shall have the meaning it has under Canadian tax law. ... Photocopies of Articles 3 and 18 of the Canada-Australia Income Tax Convention (1980) are enclosed for your perusal. ...

Income Tax Convention (the "Convention"). Normally, Article XV of that Convention will exempt a U.S. resident from Canadian taxes on employment income earned in the U.S. ... If the deeming provisions of paragraph 250(1)(c) of the Act are not applicable, you are nevertheless taxable in Canada pursuant to subparagraph 115(2)(e)(i) of the Act on the income earned as an employee of the Canadian Consulate General since, by virtue of Article XIX of the Convention, such income is not currently taxable in the U.S. ...

Our comments with respect to the four different types of expenditures you identified is as follows: Convention Expenses Paragraph 1 of Interpretation Bulletin IT-131R2, a copy of which has been enclosed, sets out the requirements that must be satisfied before convention expenses can be deducted. As you have indicated, one of the requirements is that the convention be held at a location that may reasonably be regarded as consistent with the territorial scope of the organization. The Department's position on conventions held in foreign countries is set out at the bottom of paragraph 2 of IT-131R2. ...

Income Tax Convention (1980) (the "Convention") Subsection 126(1) of the Income Tax Act (the "Act") This is in reply to your letter of February 9, 1988 in which you outlined a situation where 1) a client of yours is required to report United States source non-business income and pay tax thereon in Canada during 1988, and 2) this United States non-business income will not be reported and the tax paid thereon in the United States until 1991. ... Specifically, you have asked whether Article XXIV of the Convention would permit this course of action. Our Comments Article XXIV of the Convention As we understand it you are concerned about whether paragraph 2(a) of this Article, which permits a Canadian resident to claim a foreign tax credit pursuant to Canadian tax law for "income tax paid or accrued to the United States on profits, income or gains arising in the United States", would permit the United States tax which will be paid in 1991 to be accrued and allocated to your client's 1988 taxation year for purposes of claiming a foreign tax credit. ...

Income Tax Convention (Convention) in the following hypothetical situation. ... It is our view that where the non-resident exercises his employment in Canada a relative portion of his employment income is received in respect of such employment and paragraph 2 of Article XV of the Convention will determine whether a portion of that income will be taxable in Canada, Accordingly, when the non-resident employee exercises his option a portion,of the benefit will be received in respect of his employment in Canada and the same paragraph of Article XV of the Convention will also apply to such income. ...

Income Tax Convention (the "Convention") the amount deductible under paragraph 60(j) of the Income Tax Act (the "Act") would be limited to the lesser of the amount of the transfer and the amount subject to taxation. Upon further consideration, we have concluded that the full amount of the Benefits must be brought into income under the provisions of subparagraph 56(1)(a)(i) of the Act but an offsetting deduction for 1/2 of the amount would be allowed under subparagraph 110(1)(f)(i) of the Act for the amount not taxable under the Convention. ...

Tel que nous vous avons indiqué lors de notre conversation téléphonique (Thériault/ 19(1)) du 20 juin 1989, il nous est impossible de poursuivre l'étude de votre demande de décisions anticipées sans avoir la convention concernant l'offre de règlement de 19(1) proposé pat 19(1). A ce jour nous n'avons pas reçu cette convention et en conséquence, si dans un délai de quinze jours nous n'avons pas reçu cette convention, nous présumerons que vous avez décidé de ne pas donner suite à votre projet et votre demande sera annulée. ...

Income Tax Convention (the "Convention") the amount deductible under paragraph 60(j) of the Income Tax Act (the Act) would be limited to the lesser of the amount of the transfer and the amount subject to taxation. Upon further consideration, we have concluded that the full amount of the Benefits must be brought into income under the provisions of subparagraph 56(1)(a)(i) of the Act but an offsetting deduction for 1/2 of the amount would be allowed under subparagraph 110(1)(f)(i) of the Act for the amount not taxable under the Convention. ...