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15 July 2019- 12:02am CRA indicates that Canadian land was not Treaty-exempt even where it did not generate income Email this Content CRA indicated that a non-resident individual residing in Hong Kong for the purposes of the Canada-Hong Kong Convention who disposed of Canadian land was not exempted under the Convention on the taxable capital gain notwithstanding that the property did not generate any income, stating: [T]he reference to Article 6, "Income from Immovable Property", in Article 13, paragraph 1, of the Convention does not have the effect of reducing the scope of that paragraph. ... Summary of 4 June 2019 Internal T.I. 2018-0783441I7 F under Treaties Income Tax Conventions – Art. 13. ...

IV (4) of the Canada-US Convention, will consider such factors as the residency of the settlor and beneficiaries, the location of the trust property, and the reason the trust was established in its jurisdiction.  ... As s. 4.3 of the Income Tax Conventions Act trumps the Convention, the Convention's tiebreaker rules cannot be applied where s. 94(3) deems a trust to be resident in Canada. ...

., the principal purpose test (“PPT”)) and those of the Income Tax Convention Interpretation Act, the latter (the “ITCIA”) will prevail. S. 4.1 of the ITCIA provides that “notwithstanding the provisions of a Convention … the GAAR, applies to any benefit provided under the Convention.” The intention is that if the PPT applies, there will be no tax benefit under the Convention, to which the GAAR could apply. ...

4 May 2021- 11:09pm Blue Bridge – Federal Court of Appeal finds that CRA was not responsible for analyzing whether information requested by France could be used contrary to the French Treaty Email this Content Art. 26(1) of the Canada-France Convention provides for exchanges of “such information as is foreseeably relevant … to the administration or enforcement of the domestic laws concerning taxes of every kind … imposed on behalf of the Contracting States, insofar as the taxation thereunder is not contrary to the Convention.” ... Blue Bridge argued that it was the Minister’s responsibility to ensure that the “taxation … not contrary to the Convention” condition in Art. 26 was met before transmitting the requested information to France, whereas here, France was seeking to impose tax under a French wealth-tax statute which attributed all foreign trust assets to a French settlor or beneficiary in order to subject them to the tax, which in its view raised the possibility of the information being used to levy tax contrary to the Convention. ... Canada (National Revenue), 2021 CAF 62 under Treaties – Income Tax Conventions – Art. 27. ...

Canada also provided the OECD with a provisional list of countries it wishes to connect with under the MLI, so that its bilateral income tax conventions with those countries will be modified accordingly. The list has 75 counties which are, according to the Backgrounder released by the Department of Finance on June 7, 2017, "almost all countries and jurisdictions that were members of the ad hoc group that developed the Multilateral Convention and that have a bilateral tax treaty with Canada." However, the Backgrounder also notes that "for the modifications to apply to a tax treaty listed by Canada, Canada's treaty partner must also ratify the Multilateral Convention and list its tax treaty with Canada. ...

Art. 27(2) of the Canada-UK Convention effectively provides that where under the Convention “any income is relieved from tax in” Canada and that income is subject to tax in the UK only on a remittance basis, then “relief to be allowed under this Convention in [Canada] shall apply only to so much of the income as is taxed in” the UK. ... Summary of 1 June 2018 External T.I. 2017-0723051E5 under Treaties – Income Tax Conventions – Art. 29. ...

Convention (the “Convention”), the Inverted Payer Corporation is resident for Convention purposes in Canada because it had been incorporated there, so that s. 250(5) would not apply to deem it to be a non-resident. ... X(5) of the Convention bars the U.S. from taxing such dividends, IRC §7874(f) provides that the anti-inversion rules apply despite U.S. treaty obligations, and a U.S. court would respect this treaty override. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2007-07-06 29 May 2007 Internal T.I. 2007-0223381I7 F- Capital Dividend Account Income Tax Act- Section 87- Subsection 87(2)- Paragraph 87(2)(z.1) s. 87(2)(z.1) causes subsidiary CDA balances to flow through to the parent 2007-06-29 21 June 2007 External T.I. 2005-0157861E5 F- Cotisation professionnelle Income Tax Act- Section 8- Subsection 8(1)- Paragraph 8(1)(i)- Subparagraph 8(1)(i)(i) membership in a municipal employees’ association was not necessary for the maintenance of a professional status 18 June 2007 Internal T.I. 2007-0231861I7 F- Principale place d'affaires Income Tax Act- Section 8- Subsection 8(13)- Paragraph 8(13)(a)- Subparagraph 8(13)(a)(i) “principally performed” test references the proportion of time spent at the home office 13 June 2007 External T.I. 2007-0226261E5 F- Convention Émirats Arabes Unis Treaties- Income Tax Conventions- Article 4 meaning of “substantially all” in UAE Convention informed by its meaning under ITA Treaties- Income Tax Conventions- Article 3 undefined term in Convention informed by its domestic interpretation by CRA Income Tax Regulations- Regulation 5907- Subsection 5907(11.2)- Paragraph 5907(11.2)(a) FA required to have its central management and control in the Treaty country in addition to satisfying the Treaty residence test 21 June 2007 Internal T.I. 2007-0239681I7 F- perte sur prêts irrécouvrables Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g)- Subparagraph 40(2)(g)(ii) acquisition of shares through an RRSP can establish an income-producing purpose re a non-interest loan made directly to the corp 2007-06-22 14 June 2007 External T.I. 2006-0209341E5 F- Utilisation d'un bien d'une société de personnes Income Tax Act- Section 246- Subsection 246(1) conferral-of-benefit provisions do not apply to a partner’s personal use of partnership property other than car Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose partner’s use of partnership property is addressed by denying partnership income deductions and under s. 103, rather than through benefit-conferral provisions Income Tax Act- 101-110- Section 103- Subsection 103(1) personal use of property is a factor going to the reasonableness of the profit-sharing arrangements Income Tax Act- Section 96- Subsection 96(2.2)- Paragraph 96(2.2)(d) personal use of property could engage s. 96(2.2)(d) 13 June 2007 External T.I. 2006-0178031E5 F- Biens détenus par des fiducies testamentaires Income Tax Act- 101-110- Section 104- Subsection 104(2) property settled on a spousal trust that, on the spouse/s death, passes to testamentary trusts for the testator’s children, originates from him for s. 104(2)(a) purposes 14 June 2007 External T.I. 2006-0198341E5 F- L'EXPRESSION "VIT DANS UNE RELATION CONJUGALE" Income Tax Act- Section 248- Subsection 248(1)- Common-Law Partner meaning of "cohabits… in a conjugal relationship 2007-06-15 5 June 2007 External T.I. 2006-0174521E5 F- Avantages imposables- Ordinateur et Internet Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) 85% personal use of employer-funded home computer does not generate taxable benefit if computer is essential to performance of employment duties 7 June 2007 External T.I. 2007-0228831E5 F- Pénalité au rachat d'une obligation Income Tax Act- Section 40- Subsection 40(1)- Paragraph 40(1)(a)- Subparagraph 40(1)(a)(i) bond redemption premium entered into computation of capital gain or loss of bondholder notwithstanding withholding of premium from accrued interest ...

Topic Descriptor 17 May 2023 IFA Roundtable Q. 1, 2023-0964391C6- stock based compensation and transfer pricing Income Tax Act- Section 7- Subsection 7(3)- Paragraph 7(3)(b) s. 7(3)(b) non-deduction or s. 112(1)(e) deductibility could apply to cross-border stock option recharges of non-resident parent Income Tax Act- Section 247- New- Subsection 247(2) stock-compensation expenses may be relevant to pricing cross-border services charges even where s. 7(3)(b) prohibits their deduction 17 May 2023 IFA Roundtable Q. 2, 2023-0964301C6- Ukraine Russia FAs and Tax Reporting Income Tax Act- Section 233.5 failure to file complete information for affiliate in war-torn country Income Tax Act- Section 220- Subsection 220(2.1) potential relief from return-filing requirements re FA in war-torn country 17 May 2023 IFA Roundtable Q. 3, 2023-0964551C6- T1134 Supplement Income Tax Act- Section 233.5 T1134 should be timely-filed with missing information noted Income Tax Act- Section 90- Subsection 90(2) a pro rata distribution by an LLLP to its members is a dividend 17 May 2023 IFA Roundtable Q. 4, 2023-0965421C6- Canada-Barbados Income Tax Convention – “Special Tax Benefit” Treaties- Income Tax Conventions- Article 29 Class 2 licensees under the Barbados Insurance Act receive a “special tax benefit” for purposes of the Treaty-benefit exclusion 17 May 2023 IFA Roundtable Q. 5, 2023-0965771C6- Remote Work Arrangements Income Tax Act- Section 253- Paragraph 253(b) s. 253(b) does not extend to “invitation to treat” or advertisement Income Tax Act- Section 253- Paragraph 253(a) product development from Canadian home office might engage s. 253(a) Income Tax Act- Section 115- Subsection 115(1)- Paragraph 115(1)(a)- Subparagraph 115(1)(a)(ii) whether Canadian home offices of US employees can give rise to it carrying on business in Canada Treaties- Income Tax Conventions- Article 5 whether employee’s home office can constitute a PE of US employer 17 May 2023 IFA Roundtable Q. 6, 2023-0964351C6- Application of the Canada-US Treaty Treaties- Income Tax Conventions- Article 4 Treaty benefits could be created for a s. 216 structure by creating partnerships for US purposes 15 September 2020 IFA Roundtable Q. 7, 2020-0853571C6- Regulation 5901(2)(b) Pre-Acquisition Surplus Election Income Tax Regulations- Regulation 5901- Subsection 5901(2)- Paragraph 5901(2)(b)- Subparagraph 5901(2)(b)(ii) Reg. 5901(2)(b)(ii)(A) does not taint a siloed dividend paid by FA to Canco1 even though another Canco holds other FA shares through an LP 17 May 2023 IFA Roundtable Q. 7, 2023-0964521C6- Application of Article 10, Canada-Hong Kong Treaties- Multilateral Instrument- Article 7- Article 7(1) the PPT object and purpose test is met where individuals in a Treaty country transfer their Canco shares to a Treaty-resident Holdco to reduce dividend withholding Treaties- Income Tax Conventions- Article 10 violating main purpose test in HK Treaty increases dividend rate/ PPT object and purpose test not violated by using personal holding company in same jurisdiction 17 May 2023 IFA Roundtable Q. 8, 2023-0964561C6- Tax-free Surplus Balance and Paragraph 88(1)(d) Income Tax Act- Section 88- Subsection 88(1)- Paragraph 88(1)(d)- Subparagraph 88(1)(d)(ii)- Variable C surplus computation not required in typical bump and run transaction Income Tax Regulations- Regulation 5905- Subsection 5905(5.4) no surplus calculations needed where FA of Canadian target is acquired by Forco through a Cdn. ...