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2012 Ruling 2012-0432141R3- Server as a permanent establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Canadian data centre The taxpayers (USCo and its indirect subsidiary, NRCo) run various websites and related mobile services in order to gain advertising revenue, and to enable third parties to sell digital content, with one of the taxpayers receiving a percentage of the proceeds. ... Treaty (in the case of USCo) and for purposes of the "Convention" (in the case of NRCo). ...

23 July 2014 Internal T.I. 2014-0525231I7- Foreign tax credit-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 s. 40(3) gain had Cdn source because not taxed in Japan Canco paid Japanese income tax on the capital gain reported on the distribution by it of its shares of a Japanese subsidiary ("Forco") to its non-resident parent as a dividend-in-kind, and claimed a foreign tax credit against the Canadian income tax payable on the taxable portion of the s. 40(3) gain realized as a result of a dividend distribution from Forco earlier in the year. After concluding that Canco would not be entitled to a FTC on the basis inter alia that "a taxable capital gain resulting from a deemed disposition of property is considered to be Canadian-source income, which therefore cannot be included in the foreign non-business income for purposes of claiming a FTC," the Directorate went on to state: Article 21 [of the Canada-Japan Treaty] deems gains of a resident of Canada, which are taxed in Japan under the Convention, to arise from a source in Japan and requires Canada to provide a credit in respect of such Japanese tax against any Canadian tax payable on such gains. ...

2012 Ruling 2012-0458361R3- Cross-Border Financing-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A ECo, which is fiscally transparent for U.S. purposes and resident in the U.S. ... Convention), makes a loan (the "Charlie Debt") bearing non-participating interest to CCo, which is a CBCA corporation and affiliated with Eco. ...

2012 Ruling 2012-0458361R3- Cross-Border Financing-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 derivative benefit re loan interest ECo, which is fiscally transparent for U.S. purposes and resident in the U.S. ... Convention), makes a loan (the "Charlie Debt") bearing non-participating interest to CCo, which is a CBCA corporation and affiliated with Eco. ...

13 January 2014 External T.I. 2013-0512581E5- Sale of shares of Brazilian corporation-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 "income" includes taxable capital gains The capital gain realized by a resident of Canada ("Canco") on disposing of shares of a Brazilian company was taxed by Brazil in accordance with Art. 13 of the Canada-Brazil Treaty. Art. 22, para. 2 provides: [W]here a resident of Canada derives income which, in accordance with the provisions of this Convention, may be taxed in Brazil, Canada shall allow as a deduction from the tax on the income of that person, an amount equal to the income tax paid in Brazil, including business-income tax and non-business-income tax. ...

26 February 2014 External T.I. 2013-0487961E5- Excluded Right or Interest-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 apportionment of stock option benefits based on situs of employment during vesting period A senior employee of Canco, who is entitled to receive "free shares" from treasury as determined by management, with a vesting period of 4 to 6 years from the grant of the rights. ... After finding that there would be no deemed disposition of such a right on emigration by virtue of s. 128.1(4)(b)(iii), CRA went on to state, respecting which country has primary taxing rights as the country of source when the shares are issued: CRA has taken the position that for stock options exercised after 2012, the principles set out in paragraphs 12 to 12.15 to the Commentary on Article 15 of the OECD Model Convention will be applied to allocate a stock option benefit for purposes of the Act, unless an income tax treaty specifically applies to produce a different outcome.... ...

Convention A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident employer, becomes a resident of the U.S. ... Convention defines "pensions" to include any payment under a disability plan "a U.S. resident employee receiving LTD Plan payments could file a Canadian income tax return in order to obtain a refund of any withholdings made in excess of the 15% amount specified in paragraph 2 of Article XVIII. ...

Convention A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident employer, becomes a resident of the U.S. ... Convention defines "pensions" to include any payment under a disability plan "a U.S. resident employee receiving LTD Plan payments could file a Canadian income tax return in order to obtain a refund of any withholdings made in excess of the 15% amount specified in paragraph 2 of Article XVIII. ...

6 July 2012 Internal T.I. 2012-0440741I7- stock option benefit derived by US resident-- summary under Subparagraph 115(1)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 115- Subsection 115(1)- Paragraph 115(1)(a)- Subparagraph 115(1)(a)(i) USCo, which is a qualifying person for purposes of the Canada-US Income Tax Convention and is a wholly-owned subsidiary of a Canadian public company, employed a US-resident individual and performed employment duties for USCo in Canada for 55, 100 and 75 days in 2009, 2010 and 2011, respectively. ... Before considering the effect of the Canada-US Convention, CRA stated that Canada's default position regarding the allocation of the stock option benefit is that a stock option benefit is allocable to the services rendered in the year of grant, unless it is clear from the circumstances that some other period is more appropriate, and vesting is not relevant. ...

21 September 2012 External T.I. 2012-0457951E5- Fee for Information-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 information on customer leads was exempted as information on commercial experience CRA was asked whether the payment by a Canadian insurance broker (Aco) to a US insurance broker (Bco) of a percentage of the commissions earned by Aco, as a result of Bco providing Aco with information respecting US customers of Bco who wanted coverage for Canadian assets, would be subject to withholding under Reg. 105 or s. 212(1)(d). ... XII of the Canada-US Income Tax Convention: Where a resident of the U.S. is in receipt of payments for services made in the course of its business carried on in the U.S., it would be exempt from taxation in Canada by virtue of paragraph 1 of Article VII of the Treaty. ...