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We are also working on TPM-3, dealing with downward adjustments, in conjunction with updates to IC 71-17, Guidance on Competent Authority under Canada’s Tax Conventions. ...

That said, there will be differences, largely related to Canadian drafting conventions and compatibility with domestic legislation – but it is very important that the model rules be closely followed. ...

Q.4: Liable to Tax and Territorial Taxation In order to qualify for the benefits under an income tax convention agreed upon by the Government of Canada and the government of a foreign jurisdiction (a Tax Treaty), a person must generally be considered a resident of a “Contracting State” for the purposes of the relevant Tax Treaty. ... The resolution of such interpretative issues requires a textual, contextual and purposive analysis of the relevant provisions of the applicable Tax Treaty, in light of the applicable foreign tax legislation, as well as secondary authoritative sources, including for example the Organization for Economic Cooperation and Development relevant Model Tax Convention and its Commentary. ...

The same progression of tie-breaker tests is found in most of Canada’s treaties, as they mirror the OECD Model Convention. ... Additional information on the habitual abode test can be found in paras. 19 and 20 of the Official Commentary to Article IV of the OECD Model Convention. ...

Tax Convention (“the Treaty”)? CRA Response Generally, when a person (“a miner”) that operates Mining Equipment creates a valid block, they will receive an amount of the mined crypto-asset. ... Consistent with the commentaries on the OECD Model Tax Convention, a non-resident miner will generally be considered to carry on business in Canada through a permanent establishment where: the crypto-mining business is carried on, wholly or in part, through the operation of crypto-mining equipment; the crypto-mining equipment is at the non-resident’s disposal (whether the taxpayer owns or leases the crypto-mining equipment); and the crypto-mining equipment is used in an identifiable fixed geographic location within Canada. ...

Official Response 28 May 2015 IFA Roundtable, Q. 11, 2015-0581571C6 Question 12 – Conflicting versions of Swiss Treaty Article 10(2)(a) of the Canada-Switzerland Tax Convention (the “Swiss Treaty”) restricts Canada's right to tax dividends paid by Canadian-resident companies to Swiss-resident companies to a maximum of 5 per cent of the gross amount of the dividends if, inter alia, the dividends are paid to a company that “owns at least 10 per cent of the voting stock and of the capital of the company paying the dividends”. ...

That will be released as part of the release of the 2017 update to the OECD Model Tax Convention, which I expect will occur in May. ...

Email this Content 25 September 2017 CTF Finance Roundtable on 18 July 2017 Proposals Passive Income Q.1 – Effect on lower-bracket taxpayers Oral Response Q.2 – Calculating deferral on investment income Oral Response Q.3 – Principles affecting the proposals Oral Response Q.4- Grandfathering Oral Response Income-Sprinkling Q.5 – Complexity of TOSI Oral Response Q.6 – Difference in treatment of family transactions Oral Response Q.7 – Comparison of friends in business vs. family members Oral Response Surplus-Stripping Q.8 – Pipeline transactions Oral Response Q.9 – Effects on intergenerational transfers of family businesses Oral Response Q.10 – Scope of s. 246.1 Oral Response Q.11 – Non-ancillary s. 246.1 application to NAL transactions Oral Response General Q.12 – Implementation Oral Response Additional comment on tax advantage computation This summarizes the oral responses provided by two senior Finance officials at the Finance Roundtable held at the Infinity Convention Centre in Ottawa on 25 September 2017. ...

Income Tax Convention, invest in Canada through a vehicle resident in a third country. ...

Email this Content 25 September 2017 CTF Policy Conference, Morning Finance Session ("Setting the Stage") Maude Lavoie on passive investment income Integration Historical context of current rules No specific proposal yet Reintroduction of Part V Tax Deferred taxation model—apportionment approach Deferred taxation model- elective approach Key questions for discussions Ted Cook on income sprinkling and surplus stripping Income sprinkling Comparison of self-employment, and incorporation/sprinkling Dividends paid to children ages 18-22 Income-sprinkling issue Current sprinkling rules Limitations in current sprinkling rules Policy concern re lifetime capital gains exemption (LCGE) multiplication Policy responses re sprinkling and LTGE Policy Response re LCGE multiplication Sprinkling/LTCG feedback to date Conversion of dividends into capital gains S. 84.1 dividend treatment Avoidance of s. 84.1 Intergenerational business transfers Policy response re surplus stripping Feedback re surplus stripping Andrew Marsland on responses to common misconceptions Income sprinkling Salaries v. dividends Passive income Tax rate on passive investment income Concern over business savings This is a summary of the morning session of the Canadian Tax Foundation Policy Conference, Tax Planning Using Private Corporations: Analysis and Discussion with Finance, Monday, September 25, 2017, Infinity Convention Centre, Ottawa. ...