Search - convention

11 May 2012 External T.I. 2011-0428791E5- Foreign Tax Credit-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 Respecting a question as to the availability of a foreign tax credit for state franchise tax paid by a Canadian taxpayer (Canco), CRA (after indicating that the tax potentially would qualify for a credit), CRA went on to indicate that Article XXIV of the Canada-US Convention would not provided relief where the foreign tax credit was not available and the franchise tax was imposed notwithstanding the absence by Canco of a permanent establishment in the state (presumably given that the income in question would not be deemed to arise in the US under Art. ...

3 December 2002 External T.I. 2002-0173855- Removal computer software OECD abservation-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 Respecting the position of Canada that after May 27, 2002 a payment for the use of custom computer software will only be subject to the royalty article of a particular convention if there is a reference to other intangible property in the royalty definition and there is no specific exclusion in the royalty article for computer software, CCRA noted that there is no change in assessing practices for payments made before March 28, 2002. ...

19 April 2011 External T.I. 2011-0392761E5- Motion picture films, ITA 212(5)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 A Canadian-resident company (Canco) uses motion pictures distributed to it by a US and French company by reproducing them in Canada in digitized form and encrypting, in order that it can provide them to Canadian customers using its specialized software. ... XII, para. 4(a) of the Canada-France Convention are satisfied. ...

30 August 2011 External T.I. 2011-0402471E5- Article V(9)(a), VII(1)-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Where self-employed US-resident individual provides services in Canada January 1-January 31 and October 1-December 31 in one year, and January 1-April 30 in the next year, the fact that the services in the October-April period (being more than 183 days) are deemed to be performed through a permanent establishment in Canada does not influence the tax treatment of the January period. ... Convention] does not deem a [permanent establishment] to exist in Canada to which income from services provided at another time could be attributed. ...

1 June 2009 External T.I. 2009-0319481E5- Dividends Paid to S Corporation-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 The Canadian rate of withholding tax on a dividend paid by a Canadian corporation, that is fiscally transparent for U.S. purposes, to an S Corp of which an individual resident of the U.S. is the shareholder, will be subject to a 25% withholding tax due to Article IV(7)(b) of the Canada-U.S. Convention. Furthermore, Article IV(6) will not apply to treat the dividend as being derived by the shareholder of US Co because for U.S. purposes the shareholder will not be considered to have derived a dividend through US Co given the fiscally transparent nature of the Canadian corporation. ...

8 April 2003 External T.I. 2003-000199-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 After referring to Bromley v. ... Convention generally requires that more than 50% of the value of the shares being alienated be derived from immovable property or a right referred to in paragraph 4 of Article 13 in order for paragraph 5(a) to apply. ...

24 February 2011 Internal T.I. 2010-0387901I7- Permanent Establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 construction site PE is conclusive as to existence of PE Paragraph 3 of the OECD Model Convention (providing that "a building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months") represents a stand alone test for determining whether a site or project qualifies as a permanent establishment, so that once the requirements of that paragraph have been satisfied, a permanent establishment will be found to exist and it is not necessary to consider whether the "basic rule" in paragraph 1 has been satisfied. ...

Treaty-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 where Canco receives a guarantee (in respect of a loan made to Canco by a third party or Canco's indirect Canadian parent) for no consideration from a US sister company, the resulting interest payment imputed to be made by Canco under ss. 247(2) and 214(15)(a) will be exempted under Art. ... XI(1) of the Canada-US Income Tax Convention given that the former "was intended to deal with guarantee fees over the other Articles in the Treaty. ...

6 July 2012 Internal T.I. 2012-0453461I7 F- rental losses Canada-France Treaty-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 s. 126(1) FTC re French income tax on rental income Respecting a French rental property (the "Immovable") of the Canadian-resident individual taxpayer, CRA stated: [B]y virtue of Article XXIII of the Convention, Canada will grant a credit for the tax paid in France on the rental income generated by those immovables in order to avoid double taxation. ...

CRA indicated that such a trip is not a "convention" under s. 20(10). As per para. 11 of IT-131R2, CRA does not consider intra-company meetings, seminars, courses, etc. to be conventions from the employees' perspective. ...