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McColm (613) 995-2455 January 23, 1984 Dear Sirs: This is in reply to your letter of December 5, 1983 concerning the characterisation of rental and other payments made by a Canadian lessee to an Israeli lessor for the use of an aircraft, for purposes of the Income Tax Act (Canada) (the "Act") and the Canada-Israel Income Tax Convention (1975) (the "Convention"). ... We confirm that, in the above-noted circumstances, monthly rental payments for the use of the aircraft, including variable amounts based on hours of use of airframes and engines would be properly characterized as 'rents, royalties or similar payments' for purposes of paragraph 212(1)(d) of the Act and as 'royalties' for purposes of Article XIII of the Convention. 2. ...

Income Tax Convention (the Convention) as stated in Article V thereof, the term permanent establishment means a fixed place of business in which the business of the enterprise is wholly or partly carried on. ... In order for A to have a PE in Canada the following conditions must be met; i) there must be a place of business; ii) the place of business must be fixed; ii) A must carry on business through the fixed place of business; and iv) the deeming provisions of paragraph 3 of the convention must not apply. ...

We have also noted that the 1981 Round Table position was formulated before the introduction of the Income Tax Conventions Interpretation Act ("ITCIA"), which is applicable, in the case of tax under Part XIII of the Act, to amounts paid or credited after June 23, 1983. Under the ITCIA, if a term is not defined in the provisions of a convention, it has the same meaning it has for purposes of the Act. ... Conversely, if the payments are described in a definition of rentals in the applicable tax convention, then the payments to the non-resident, in respect of a lease regarded as a disposition of property under the Act, would be rental payments. ...

U.S. social security pensions are generally taxable in Canada, however, paragraph 5 of Article XVIII of the 1980 Canada-United States Income Tax Convention (the "Convention") permits Canada to tax only one-half of such payments received by its residents. ... In this case, you would be considered a non-resident for Canadian income tax purposes, and it is assumed that you would be a U.S. resident for purposes of the Convention. ...

Furthermore, the provisions of the Canada-Sweden Income Tax Convention may be applicable to override the provisions of the Income Tax Act of Canada. Accordingly, we are unable to answer your questions as the determination of the taxation of any particular insurance policy would require a complete review of all facts relative to the policy and the policyholder having regard to both the Income Tax Act of Canada and the aforementioned income tax convention. ... We would caution that many of the comments in these publications are general in nature and that, when considering any particular circumstance, reference should be made to the Income Tax Act of Canada and the Canada-Sweden Income Tax Convention. ...

Income Tax Convention (the "U.S. Convention"), alimony and other similar amounts (including child support payments) paid by a resident of the U.S. to a resident of Canada, are exempt from Canadian taxes to the extent that the payments would be exempt from tax in the U.S. if the recipient were a resident thereof. ... Convention. However, because the exemption referred to in part 5(b) of Article XVIII relates to a Part 1 tax liability, the comments on page 2 of the Release dated September 11, 1984 (copy attached) correctly indicate that the exemption pertains only to social security benefits received after 1984. ...

Income Tax Convention (the Convention) as a result of an election made by the Canadian resident individual pursuant to U.S. tax law to bo taxed as though he were a U.S. resident alien. ... Given that such investment income is not earned by the "S" corporation and that the individual would have dual resident status, it is our opinion that in such circumstances the Convention should apply and the amount of taxes creditable for purposes of section 126 and/or deductible for purposes of subsection 20(11) and (12) of the Income Tax Act would be limited to the maximum rate provided by the treaty. ...

Harding (613) 957-2111 September 28, 1993 Dear Madam: Re: Canada-Egypt Income Tax Convention (the "Convention") This is in response to your fax (the "Fax") dated September 22, 1993 concerning the treatment of the income of Canadian partners who are members of an Egyptian partnership which carries on business in Egypt and not in Canada. ... As indicated in our letter of September 14, 1993 the Income Tax Conventions Interpretation Act ("ITCIA"), which was passed in Parliament and received Royal Assent, was enacted to ensure that the interpretation of any of Canada's tax treaties would not prevent Canada from taxing its residents on their world income. ...

27 February 1981 Income Tax Severed Letter RCT-0539 Unedited CRA Tags none We have been asked if the Canada-France Income Tax Convention- 1976 has application to the French islands of St Pierre et Miquelon. XXX In the past your Division has replied to correspondence (copy attached) indicating that the Convention has application to the islands of St. ...

28 September 1989 Income Tax Severed Letter HBW 4125-F1B Unedited CRA Tags Canada-France Income Tax Convention Article 5 XXX PARAGRAPH 5, ARTICLE XXIX CANADA-FRANCE INCOME TAX CONVENTION As competent authority, we have been asked to agree that the pension plans referred to in the attached submission correspond to pension plans which would be recognized for income tax purposes in Canada. ...