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23 January 2012 External T.I. 2011-0418281E5- Employment income- treaty exemption-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 US sub is true employer Where US Co (not having a permanent establishment in Canada) provides the services of a US-resident employee for less than 183 days to its Canadian affiliate (Canco), the position taken in technical interpretation 2011-0403551E5 that the employee's remuneration is exempt under Art.XV, para. 2 of the Canada-US Convention is not changed if there is no profit element in the reimbursement charge made by US Co to Canco nor would it change if there is no formal service contract- provided that the true and only employer of the employee both in substance and in form is US Co. ...

2012 Ruling 2011-0429961R3- Hydrocarbon & Immovable property: Canada-UK Treaty-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 storage business carried on in leased real estate had over 50% of value Ruling that the transfer of shares of a UK company (Forco2- whose value is derived from CAnco shares) by two other UK companies (Forco1 and Forco4) would be exempt under Art. XIII, para. 8 of the Canada-UK Convention on the basis of an internal estimate prepared by Canco management that the going concern value of the gas storage business carried on by Canco (which was carried on in real estate facilities held on leased land) was greater than X% of the value of the shares of Canco, and that the hydrocarbon assets of Canco did not exceed Y% of the assets of Canco. ...

29 August 2012 External T.I. 2012-0433791E5- Permanent Establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 counting of presence on personal business A Canadian-resident employee (Mr A) of a Canadian resident corporation (Canco) provides services in the US to US businesses for 150 days in any 12-month period, with such services being Canco's only source of gross active business revenue. CRA was asked whether Mr A would be considered to be present in the US for more than 183 days for purposes of para. 9(a) of Article V of the Canada-US Convention, on the basis that Mr A was present in the US for a further 50 days in a 12-month period for personal reasons, such as shopping, vacationing and attending sporting events. ...

17 May 2012 IFA Roundtable, 2012-0444161C6- Competent Authority Agreements-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 no deferral agreement where gain exempted In responding to a query which noted that the Canada-U.S. Treaty, unlike other Conventions, specifically referred to deferral agreements of competent authorities being entered into to avoid double taxation, and asked whether "the Canadian Competent Authority [would] be willing to enter into a deferral agreement under one of these other treaties where the profit, gain or income is exempted or excluded from taxation under the domestic laws of the residence," CRA responded negatively:...the Canadian Competent Authority requires taxpayers seeking a deferral agreement to demonstrate that the profit, gain or income for which an agreement is being sought is only deferred- not exempted or excluded- from taxation under the domestic laws of the residence state. ...

30 January 2013 External T.I. 2012-0449621E5 F- Belgian pension-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Belgian social security payment received by Canadan resident must be included in the personal return, but with offsetting s 110(1)(f)(i) deduction claimed Respecting the payment of a Belgian pension to a Canadian resident, CRA stated (TaxInterpretations translation): Thus, to the extent that the retirement pension of a recipient satisfies the conditions stated in paragraph 1 of Article 18 of the Convention and does not constitute a payment by virtue of social security legislation of Belgium, the sum received by the Canadian taxpayer is taxable in Canada and in Belgium. ...

18 November 2013 Internal T.I. 2011-0399581I7 F- Application of section 212(1)(d) ITA-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 contingent payments came within broad Treaty definition of royalty Canco is granted an exclusive licence, bearing a royalty, by NRCO (an arm's length resident of Ireland) in respect of patents and know-how for the production and commercialization of certain products. ... " However, they were royalties under the Ireland-Canada Convention- but were exempt under Art. 12, subpara. 3(b) as royalties for the use of, or the right to use, any patent or information concerning industrial, commercial or scientific experience. ...

28 November 2010 Annual CTF Roundtable, 2010-0387001C6- Canada-US Treaty LOB- Treatment of Interest-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A interest paid out of connected business Canco has both qualifying active business income from a Canadian business that is connected with an active trade or business (the connected business) of its wholly-owning US parent (USco) and also non-qualifying income of some kind, and pays interest to USco (which is not a qualifying person) on a debt owing to USco. ... XXIX A, para. 3 of the Canada-US Convention if (1) the payment is in respect of indebtedness that was incurred exclusively for the purpose of earning income from Canco's connected business, or (2) Canco can establish that the interest payment was funded out of the earnings of the connected business. ...