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Income Tax Convention (1980). The relevant portions of section 212 of the Act read as follows: 212 (1) Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of, Rents, Royalties, ETC (d) rent, royalty or similar payment, including, but not so as to restrict the generality of the foregoing, any payment (i) for the use of or for the right to use in Canada any property, invention, trade-name, patent, trade-mark, design or model, plan, secret formula, process or other thing whatever, (ii) for information concerning industrial, commercial or scientific experience where the total amount payable as consideration for that information is dependent in whole or in part on (A) the use to be made of, or the benefit to be derived from, that information, (B) production or sales of goods or services, or (C) profits, (iii) for services of an industrial, commercial or scientific character performed by a non-resident person where the total amount payable as consideration for those services is dependent in whole or in part on (A) the use to be made of, or the benefit to be derived from, those services, (B) production or sales of goods or services, or (C) profits, but not including a payment made for services performed in connection with the sale of property or the negotiation of a contract, (iv) made pursuant to an agreement between a person resident in Canada and a non-resident person under which the non-resident person agrees not to use or not to permit any other person to use any thing referred to in subparagraph (i) or any information referred to in subparagraph (11), or (v) that was dependent on the use of or production from property in Canada whether or not it was an instalment on the sale price of the property, but not including an instalment on the sale price of agricultural land, but not including (vi) a royalty or similar payment on or in respect of a copyright in respect of the production or reproduction of any literary, dramatic, musical or artistic work. Article XII of the Convention reads: Article XII Royalties I. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. ... Even if I am wrong in rejecting the respondent’s argument that the payment is caught by the words “...any payment for the use of or the right to use in Canada any... other thing whatever” in the opening words of paragraph 212(1)(J) and subparagraph (i) thereof but not by the words “royalty or similar payment”, in subparagraph (vi), I think the payment is in any event protected by the Convention. ...

As in the case at bar, she was entitled, pursuant to the UK-US Tax Convention and under the UK Income Tax Act, to a credit against any UK taxes payable in respect of US income which had been taxed there. ... The Crown contended that the alteration in the rate of exchange when the credit was repaid should be taken into account when the taxpayer’s credit under the Convention was adjusted by reason of the repayment of tax in 1950. ... But I reject the Crown’s contention because the alteration in the rate of exchange is purely an outside circumstance which has nothing to do with the liability for tax nor the way in which the Convention ought to be related to the law. ...

You agree to abide by the copyright law and all other applicable laws of Canada, the United States and other countries which are signatories to international treaties and conventions protecting content and software.   14.     ... The most recent commentary to Article 12 of the OECD Model Tax Convention on Income and Capital (as produced in Perla Gyöngyi Végh, ed., OECD Model Tax Convention on Income and on Capital, Condensed Version – 2005; and Key Tax Features of Member Countries (Amsterdam: International Bureau of Fiscal Documentation, 2005)) states a functional test, one that that focuses on identifying the essential consideration for which the payment is made. ...

The first contextual notion to be taken account of is the distinction between “listed” and"non-listed" countries created by subsection 5907(11), which reads as follows: (11) The following countries are hereby listed for the purposes of paragraphs (1)(b) and (c): (kk) United States of America, but for greater certainty, not including the Territories; The listed countries appear to be largely those with which Canada has entered into tax conventions. ... Income Tax Convention in effect at the time, [2] as well as that of 1980, expressly provided that the term "United States” did not include Puerto Rico. ... Income Tax Convention (1980), Art. 111 (1)(b). ...