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2017 Ruling 2017-0712731R3- Amount of withholding tax under paragraph 212(1)(b)-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 CRA treats non-resident LPs as conduits for purposes of Treaty interest withholding relief Four non-resident LPs with the same non-resident corporate general partner (GP Co) collectively control Canco through their holdings of a common and preferred shares (with the minority shareholders being unrelated investors) and have also made unsecured interest-bearing loans to Canco. ...

15 September 2020 IFA Roundtable Q. 5, 2020-0853401C6- IFA 2020 Q5: TPM-17 and COVID-19-- summary under Article 9 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 9 Cdn governmental COVID assistance generally does not reduce cost TPM-17 provides that the Canadian taxpayer’s cost base should not be reduced by government assistance unless there is reliable evidence that arm’s length parties would have done so. ...

IV of Canada’s Income Tax Conventions, the Directorate noted that CERB Payments are required to by ss. 56(1)(r)(iv.1) and 115(1)(a)(iii.22) to be included in computing the taxable income earned in Canada of a Non-Resident recipient, and then indicated that since Reg. 2602 does not refer to amounts included in income pursuant to s. 115(1)(a)(iii.22), CERB Payments are subject to the federal surtax pursuant to s. 120(1) rather than being income earned in a province. ...

17 May 2022 IFA Roundtable Q. 1, 2022-0933371C6- Meaning of Habitual Abode-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 habitual abode determined in context based inter alia on relative stays and nature of activities Canada’s treaties typically contain tie-breaker rules for individuals. ...

17 May 2022 IFA Roundtable Q. 13, 2022-0926381C6- Statistics on MAPs-- summary under Article 26 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 26 around half of CRA’s recent MAP cases resulted in full relief CRA provided the following statistics on MAPs for the 2020 calendar year: … The average time to complete a negotiable MAP case was 17.83 months; Of the 74 MAP cases closed in 2020, 36 cases (i.e., 48.6%) resulted in full relief from double taxation upon negotiation, 9 cases (i.e., 12.2%) had objections not justified, and 8 cases (i.e., 10.8%) were resolved through unilateral relief. ...

22 December 2021 External T.I. 2021-0878661E5- Canadian tax on lump sum RRSP payments-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 lump sum RRSP payments to a New Zealand resident are subject to Part XIII tax at a 25% rate Regarding the Canadian withholding tax rate applicable to lump sum payments from a Canadian registered retirement savings plan (“RRSP”) to a resident of New Zealand, the questioner noted that IC76-12R6 as it then read stated, in Appendix C, that a lump sum RRSP payment to a resident of New Zealand was subject to a 15% Canadian withholding tax. ...

11 April 2023 Internal T.I. 2023-0964101I7- Tax issues for cross-border employees-- summary under Article 8 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 8 contributions to 401(k) plan not deductible to the extent the duties of employment were performed from a Canadian home office Regarding the deductibility of a contribution made to a 401(k) plan by a cross-border employee (with a hybrid work arrangement) who exercises a portion of the duties of employment from Canada, the Directorate referenced the rule in Art. ...

6 April 2023 Internal T.I. 2022-0929731I7- Articles 18(2) and (3) of the Canada-Italy Treaty-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 CPP and OAS payments treated as pensions and social security payments under the Canada-Italy Treaty Regarding the receipt by an individual resident in Italy of periodic Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) benefit payments, the Directorate found that Art. 18(2) of the Canada-Italy Treaty limits the tax on Canadian-source pension income (including CPP) to the lesser of 15% of the total such income exceeding $12,000 and the amount of tax (referred to as the “as-if-resident” or “AIR” amount) that a resident of Canada would pay on that income. ...

2023 Ruling 2022-0958521R3- foreign absorptive mergers-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 disposition of shares of companies resident in third countries and which were taxable Canadian property was exempted under XIII(4) of the Canada-US Treaty After giving effect to some preliminary transactions, a U.S. corporation which was a qualifying person for purposes of the Canada-US Treaty (the “Treaty”) wholly-owned four stacked corporations in Country 1. ...

2022 Ruling 2022-0929431R3 F- Entity classification-- summary under Section 96 Summary Under Tax Topics- Income Tax Act- Section 96 French SCPI is a corporation rather than partnership CRA ruled that a société civile de placement immobilier (“SCPI”) [real estate investment company] was a corporation for ITA purposes and a “company” for purposes of the Canadian application of the Convention with France. ...