Search - convention

Sommerer, 2012 DTC 5126 [at at 7219], 2012 FCA 207-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 attributed gain not included After finding that s. 75(2) did not apply to attribute to the Canadian-resident taxpayer a taxable capital gain realized by an Austrian private foundation (a resident of Austria), the Court went on to find that, in any event, such application of s. 75(2) would have been precluded by the Canada-Austria Income Tax Convention, as found in the Tax Court. ... The existence of that reservation suggests that an underlying premise of the Canada-Austria Income Tax Convention is that tax on attributed income generally is within its scope. ... The Crown's argument requires the interpretation of a specific income tax convention to be approached on the basis of a premise that excludes, from the outset, the notion that the convention is not [sic] intended to avoid economic double taxation. ...

., 97 DTC 1511, [1998] 1 CTC 2095 (TCC)-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 Article IX of the 1980 Canada-U.S. Convention and Article IV of the 1942 Canada-U.S. Convention did not prevent the application of s. 18(4) of the Act to limit the deduction of interest by the taxpayer, not withstanding that the loans in question bore interest at an arm's length rate. ...

Canada, 2012 FCA 320, aff'g 2012 DTC 1125 [at 3133], 2012 TCC 91-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 vital interest: closest personal and economic relations Lamarre J. found that the taxpayer, a U.S. citizen, was resident in Canada during the relevant tax period, pursuant to Art. ... Convention. The taxpayer had spent only 69 of 623 days in the United States. ... In affirming that this decision, Dawson J.A. remarked (at para. 6): The [vital interests] test to be applied under the Convention is one of fact: in which, if any, state does the individual have closer personal and economic relations? ...

The Queen, 94 DTC 1816 (TCC)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 period starts running no earlier than 1972 Land of U.S. ... Convention on the basis of the number of months of ownership subsequent to December 31, 1971 rather than subsequent to the date of acquisition in 1952. ... Treasury Department and to IT-173R2, para. 14, both of which referred to the period of [total] ownership, and also found that s. 3 of the Income Tax Conventions Interpretation Act had no application because paragraph 9 of Article XIII referred to the "gain" rather than to the "capital gain". ...

Convention and Article IV of the 1942 Canada-U.S. Convention did not prevent the application of s. 18(4) of the Act to limit the deduction of interest by the taxpayer, not withstanding that the loans in question bore interest at an arm's length rate. ...

The Queen, 2014 DTC 1046 [at at 2882], 2014 TCC 12, briefly aff'd 2014 FCA 275-- summary under Article 29 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29 Treaty residence not domestically applicable In 2002, the taxpayer was resident both in Canada and the U.K. for domestic tax purposes, but by virtue of Art. 4, para. 2(a) of the Canada-U.K Income Tax Convention (the "Convention") he was a resident of the U.K. for purposes of the Convention. ... If he instead had been successful on this argument, he would have faced a further difficulty in Art. 27, para. 2 of the Convention, which provided that income, which otherwise was "relieved" from Canadian income tax under the Convention but was subject to tax in the U.K. only on a remittance basis, would only be subject to such relief to the extent it was so remitted. ... -source employment income (which had not been remitted to the U.K.), stating (at para. 67): I agree with respondent that reading the words such as "arising in Canada" into Article 27(2) would distort the intended meaning of that provision of the Convention. ...

The Queen, 94 DTC 6375 (FCTD)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 MacKay J. found that the reference in Article XIIIC of the 1942 Canada-U.S. Convention to "motion picture films" referred only to products which originally were created for theatrical exhibition rather than for television viewing, in light of evidence that those in the industry did not consider television movies and other made-for-television productions to be "motion picture films" and in light of its determination that the phrase "motion picture films" should be given the meaning intended by the parties to the Convention in 1950 when that Article was incorporated by the Protocol amending the 1942 Convention. ...

Canada (National Revenue), 2021 FCA 62-- summary under Article 27 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 27 CRA was not responsible for analyzing whether information requested by France could be used contrary to the French Treaty Art. 26(1) of the Canada-France Convention provided inter alia: The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description 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, 2004 DTC 6103, 2004 FCA 51-- summary under Article 2 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 2 Article VI of the Canada-Ireland Convention, which provided that "the rate of Canadian tax on income... derived from sources within Canada by a resident of Ireland shall not exceed 15 percent" applied to limit the rate of capital gains tax payable by a resident of Ireland on the disposition of shares of a Canadian private corporation to 15 percent of the taxable capital gain rather than of the capital gain, given that both Article II(3) of the Convention and s. 3 of the Income Tax Conventions Interpretation Act mandated that the meaning to be given to a term found in a treaty should be the meaning given to the term from time to time under the Act, unless the context otherwise required. ...

The Queen, 2000 DTC 2473 (TCC), aff'd 2003 DTC 5015 (FCA)-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 After already having concluded that the taxpayer was not resident in Japan and only resident in Canada, Garon C.J. went on to state (at p. 2493): "Although I do not decide the matter, I doubt that this Court has the authority to apply the tie breaker rules referred to in the Canada-Japan Income Tax Convention. The words of the Convention state specifically that 'the competent authorities of the Contracting States shall determine by mutual agreement the Contracting State of which that person shall be deemed to be a resident for the purposes of this Convention' and this should be done by resorting to the tie breaker rules. ...