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Principal Issues: Are bonds issued by the Kingdom of Morocco eligible for tax sparing under Article XXII of the Canada-Morocco Convention? ... Stalker Attention: XXXXXXXXXX January 20, 1997 Dear Sirs: Re: General Revenue Bonds Issued by the Kingdom of Morocco We are writing in response to your facsimile transmission dated September 2, 1996 in respect of the Canada-Morocco Income Tax Convention (the "Convention"). You have asked whether the tax sparing provisions in Article XXII of the Convention would apply to interest payments on bonds issued by the Kingdom of Morocco. ...

15 July 1992 Income Tax Severed Letter 9204805- Does Association of Racing Car Teams Qualify as a League 920480 24(1) K.B.Harding 957-2111 Attention: 19(1) July 15, 1992 Dear Sirs: Re: Article XVI of the Canada-U.S Income Tax Convention (the "Convention") This is in reply to your letter of February 12, 1992 wherein you requested our opinion concerning Article XVI of the Convention. ... You questioned the meaning of the word "league" as used in paragraph (3)(a) of Article XVI of the Convention and how that paragraph would apply to the above situation. ... It is our understanding that the exemption from the application of paragraphs 1 and 2 of Article XVI of the Convention provided in paragraph 3 of Article XVI of the Convention was intended as a concession to hockey and baseball players etc. where the teams are required to compete in all games in a regular schedule. ...

Tax Convention Canada-U.S. Tax Treaty:Art. XIX Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. ... Convention (the "Convention"). It should be noted that in paragraph 2 of Article XXIX of the Convention, the United States preserved its right to tax its citizens as if there was no Convention, however, paragraph 3 of that Article of the Convention, also provides that even for its citizens the United States will honour its commitment under certain articles of the Convention, including Article XIX of the Convention. ... In summary, unless the locally engaged staff in the United States take positive steps to renounce their Canadian citizenship we are of the view that since dual citizens continue to be citizens of Canada, Canada maintains its right to tax such individuals since they continue to meet the conditions set out in Article XIX of the Convention. ...

Amounts paid by a corporation resident in the United States to a corporation resident in Canada that are deemed to be dividends by and for purposes of the taxation laws of the United States may, by virtue of paragraph 3 of Article X of the Canada-United States Income Tax Convention, 1980 (the "Convention"), be deemed to be dividends for purposes of Article X of the Convention. ... Consistent with paragraph 1 of Article X and paragraph 1 of Article XI and as provided by paragraph 2 of Article XXIX of the Convention, the Convention does not affect the manner in which Canada may tax residents of Canada in respect of interest and dividends and accordingly the taxation of residents of Canada in respect of interest and dividends arising in the United States is to be in accordance with the provisions of the Income Tax Act. We cannot rule out the possibility that a taxpayer may be granted relief from taxation in a particular situation by virtue of the provisions of Article XXVI of the Convention and thus recommend that an application be made pursuant to paragraph 1 of Article XXVI of the Convention where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of the Convention. ...

Income Tax Convention (1980) applies strictly to capital gains, or whether it encompasses "income" gains as well. ... Income Tax Convention (198) or would it be taxable in Canada under another provision of the Treaty? ... Tax Convention (1980) (hereinafter "Tax Convention"). The lump sum payment made to the U.S. resident by the insurance company would not fall under the provisions of Article XVIII of the Tax Convention for the reason that to the extent that the "life.insurance policy in Canada" may be viewed as a "annuity" the lump sum payment would not fall within the term "annuities" as defined in paragraph 4 of Article XVIII since it would not constitute a periodic payment. ...

We are not entirely convinced that in the hypothetical situation set out in your letter that the individual would be a resident of the United Kingdom for purposes of Article IV of the Canada-United Kingdom Tax Convention (Convention). ... We have reviewed the terms of the Convention and it is our view that there is nothing in the Convention which restricts Canada's right to tax an individual, who is resident in both Canada and the United Kingdom, but for purposes of the treaty is deemed to be resident of the United Kingdom, on income received from a third country. ... " Since the Canada-United States Income Tax Convention is modelled on the OECD model, we confirm the argument expressed in your letter. ...

Toussaint Attention: XXXX Dear Sirs: This is in reply to your letter dated August 19, 1985, concerning the treatment of software licence payments under the Canada-United States Income Tax Convention (1980) (the new "Convention"). ... It was therefore decided that payments made for the use of software programs could not be exempt under Article XIII C of the former Convention or under Article XII(3) of the new Convention because they are not copyright royalties or payments in respect of the right to produce or reproduce literary, dramatic, musical or artistic work. ... Yours sincerely, Director Provincial and International Relations Division CGT/ jb Article XIII C- Canada-United States Income Tax Convention (New) ...

However, the old Convention, Article VIA, exempted such periodic payments from withholding tax. ... Commuted value to Beneficiary or Lump Sum to Annuitant The new Convention does not limit the tax to 15% on lump sum payments. ... While Article VIA of the old Convention does not exempt lump sum payments, Article XI of that Convention does provide for a 15% withholding rate. ...

En somme, en vertu du paragraphe 248(1) L.I.R., tant une action visée par une convention en vertu de laquelle elle doit être acquise dans les 60 jours suivant la conclusion de la convention qu’une action visée par une convention d’achat qui ne contient pas cette condition peut se qualifier d’API ou d’APCT. Dans le cas où la convention prévoit l’acquisition de l’action dans les 60 jours suivant la conclusion de la convention, le sous-alinéa 248(1)f)(i) L.I.R. et la division 248(1)a)(i)(A) L.I.R. indiquent que, pour déterminer si l’action est une API ou une APCT, il ne sera pas tenu compte d’une telle convention si le montant fixé pour l’acquérir ne dépasse pas le plus élevé de sa JVM au moment de la conclusion de la convention ou au moment de son acquisition. Dans le cas où la convention ne prévoit pas l’acquisition de l’action dans les 60 jours suivant la conclusion de la convention, le sous-alinéa 248(1)f)(ii) L.I.R. et la division 248(1)a)(i)(B) L.I.R. indiquent qu’il ne sera pas tenu compte d’une telle convention si le montant fixé pour l’acquérir ne dépasse pas sa juste valeur marchande au moment de son acquisition. ...

Position Adoptée: (1) Non. (2) L'expression "convention d'achat-vente" doit être interprétée à la lumière de son sens ordinaire. ... Questions: a) L'ARC considère-t-elle qu'une convention prévoyant que des actions d'une société pourraient être émises à une personne non-résidente dans certaines circonstances et sur décision de cette personne constitue une "convention d'achat-vente" pour les fins de l'alinéa 110.6(14) b) L.I.R.? ... Quoique la forme et la teneur d'une convention d'achat-vente peut varier selon les circonstances, l'ARC a indiqué dans l'interprétation 2002-0156745 qu'une telle convention d'achat-vente est généralement défini comme étant un contrat bilatéral qui prévoit habituellement la vente par une personne et l'acquisition par une autre personne de biens qui font l'objet de la convention appartenant à la première personne. ...