Paragraph 212(1)(d) - Rents, royalties, etc.
Cases
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
After finding that two lump-sum payments made by the taxpayer to an American company were not subject to Part XIII tax under s. 212(1)(d)(i),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | failure of Minister to allocate | 57 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | right to buy and resell product not a right to use | 204 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 13 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "including" enlarges | 105 |
Vauban Productions v. The Queen, 75 DTC 5371, [1975] CTC 511 (FCTD), aff'd 79 DTC 5186, [1979] CTC 262 (FCA)
The non-resident taxpayer, a film distributor, which had acquired from another film distributor the distributorship rights for certain films,...
CI Burland Properties Limited v MNR, 68 DTC 5220 (SCC)
Municipal taxes which, under the terms of the real property lease between the non-resident taxpayer and a resident tenant, the tenant agreed to...
United Geophysical Co. of Canada v. MNR, 61 DTC 1099, [1961] CTC 134 (Ex Ct)
In finding that payments made by the taxpayer to its U.S. parent for the use by it of equipment in its Canadian business represented "rent,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | company's business not carried on as agent for shareholder | 154 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | U.S. equipment rentals not attributable to Canadian services | 137 |
See Also
PepsiCo, Inc v Commissioner of Taxation, [2024] FCAFC 86
A U.S. company (PepsiCo) entered into an “exclusive bottling appointment” (“EBA”) with an independent Australian bottling company (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | concentrate purchases by an Australian soft drink bottler could not be recharacterized as trademark royalties for withholding tax purposes | 448 |
| Tax Topics - General Concepts - Payment & Receipt | there can be no payment by direction unless there is an antecedent obligation by the creditor to the third party | 160 |
The Principal Commissioner of Income Tax-6 v. M.Tech India P. Ltd., ITA 890/2015
The Assessee was engaged in the resale of software. The Revenue assessed on the basis that the payments made for the software were royalty...
Patricia & Daniel Blais O/A Satronics Satellites v The Queen, 2010 TCC 361, 2010 DTC 1271 [at 3904] (Informal Procedure)
The taxpayers sold individual customers access to the satellite network of an American firm ("NPS"). The Minister argued that the payments from...
Angoss International Ltd. v. R., 99 DTC 567, [1999] 2 CTC 2259 (TCC)
A lump-sum payment made in order to receive a non-exclusive licence of source code, and described as a "licence fee", was found to be "similar" to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | licensing of source code used in manufacturing | 47 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 47 |
Hasbro Canada Inc. v. The Queen, 98 DTC 2129, [1999] 1 CTC 2512 (TCC)
The taxpayer, which was a Canadian manufacturer and distributer of toys in Canada, paid fixed commissions expressed as a percentage of the...
Entré Computer Centers Inc. v. The Queen, 97 DTC 846, [1997] 1 CTC 2291 (TCC)
Payments made by Canadian franchisees to the taxpayer that were calculated as a mark-up on the value of products sold by the taxpayer to them were...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Substance | 98 |
Viceroy Rubber and Plastics Ltd. v. MNR, 93 DTC 347, [1993] 1 CTC 2343 (TCC)
In finding that payments, styled lease payments, that the taxpayer made to the non-resident holder of moulds used in the taxpayer's business were,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Substance | substance based on analysis of agreement | 97 |
Grand Toys Ltd. v. MNR, 90 DTC 1059, [1990] 1 CTC 2165 (TCC)
The taxpayer agreed to act as the exclusive distributor in Canada of articulated figurines produced by a Hong Kong joint venture ("Panosh") and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | 73 |
Canpar Holdings Ltd. v. Saskatchewan (Minister of Energy and Mines) (1987), 60 Sask R 128 (C.A.)
Before finding that the percentages of net production profits from Canadian resource properties paid by the taxpayer to two other corporations...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | amounts received were revenue notwithstanding on-payment obligation | 215 |
MNR v. Paris Canada Films Ltd., 62 DTC 1338, [1962] CTC 538 (Ex Ct)
Dumoulin J. stated (p. 1341):
"I incline to believe that a lump-sum payment for rights irrevocably ceded, tantamount to an assignment in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | 78 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | 63 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 60 |
Warsh & Co. Ltd. v. MNR, 62 DTC 247 (TAB)
The taxpayer, which was a Canadian manufacturer of ladies' dresses, agreed in writing with a U.S. company that it would have the exclusive...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 67 |
C.I.R. v. Longmans Green & Co., Ltd. (1932), 17 TC 272 (K.B.D.)
The respondent agreed with the French author of a book that it would acquire the exclusive right of translation and publication in the English...
Administrative Policy
18 February 2022 Internal T.I. 2020-0836351I7 - 212(1)(d)/Copyrights/Trademarks/XXXXXXXXXX
Royalties were payable by Canco to a non-resident for the right to use copyright and trademarks in connection with the design, manufacturing and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | onus on CRA to allocate between exempt and taxable royalties – but not bound by licence agreement allocation | 250 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(x) | allocation of royalty between Canadian and non-resident business ordinarily made based on the respective revenues generated | 166 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) | allocation of expenses of a business carried on in two different countries | 338 |
16 August 2017 Internal T.I. 2017-0701291I7 - Exclusive Distributorship Rights
In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | Farmparts likely excluded application to product distributorship right/product name on product not a valuable use of trademark | 507 |
| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was for a restrictive covenant | 279 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(i) | a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was subject to s. 212(1)(i) withholding | 216 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | lump sum paid for distributorship rights was not a royalty | 243 |
13 February 2017 External T.I. 2015-0570011E5 - Compensation by non-resident-loss of rental income
A non-resident lessor of Canadian lands receives annual compensation from a Canadian utility company pursuant to a court order that is intended to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 216 - Subsection 216(1) | damages can be eligible for a s. 216 election | 103 |
3 October 2014 Internal T.I. 2014-0532051I7 - Rent and Part XIII Tax
A non-resident individual not carrying on business in Canada ("Owner") leases a Canadian property to a related resident individual ("Tenant") at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) | non-commercial arrangement not subject to s. 247 | 99 |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | rents from personal rental property not required to be reported | 112 |
27 March 2014 External T.I. 2013-0512921E5 - Withholding tax on relicensing fee
After stating that "in general, a rent or royalty represents a payment made to the owner of property for the right to use such property for a...
14 January 2013 External T.I. 2012-0443561E5 F - Part XIII re: royalties paid for tv program
Canco, which carried on a video production business in Canada made payments to USco for the use of a TV show concept (the "Format"), which it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | payments based on TV production costs came within s. 212(1)(d)(i) | 193 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | copyright exception applicable to use of TV format in producing a Canadianized TV production | 112 |
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
A Canco entered into a franchise agreement with a USCo under which Canco had the exclusive right in Canada to use USCo's trade-marks, brands,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | fee for purchase right | 175 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | procurement licence fee | 300 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | procurement licence fee | 165 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iv) | allocation to exclusivity payments | 100 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) | procurement licence fee | 164 |
24 May 2011 External T.I. 2007-0246981E5 - Subsection 212(1)
In consideration for the "Non-Resident's" grant of the right to manufacture and sell a trademarked product to the "Resident," who manufactures the...
19 January 2012 External T.I. 2011-0414341E5 F - Déf revenu brut location Partie XIII
A Canadian-resident "Manager" agrees to provide rental management services to the non-resident owner (the "Owner") of an immovable located in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 216 - Subsection 216(4) | election permits withholding only on net amount remitted by agent-manager to NR owner | 271 |
26 July 2010 External T.I. 2009-0349481E5 F - 212(1)d)(i)-Marque de commerce utilisée au Canada
Canco, which sells consumer goods to retailers, acquires a licence to use a trademark in connection with the sale of goods in Canada or the U.S....
21 June 2002 External T.I. 2001-0107705 F - Partie XIII et logiciels d'ordinateurs
Regarding whether mass-produced software, such as Microsoft Office, which requires the user to consent to the terms of the user licence and to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business | question of fact whether software developer generating royalties has a specified investment business | 42 |
4 December 1995, November TEI Round Table, Q. 4, 953042
In response to a question as to whether compensation payments made under a securities loan from a related non-resident corporation should be...
20 December 1995 External T.I. 9526825 - ENTRY FEE PAYMENTS & WITHHOLDING TAX
Discussion of factors bearing on whether surface lease payments are on account of capital (e.g., lump sum payments received as compensation for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 98 |
93 C.P.T.J. - Q.27
Royalties earned by non-residents not carrying on business in Canada from Canadian resource properties are subject to withholding tax under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 214 - Subsection 214(1) | 37 | |
| Tax Topics - Income Tax Regulations - Regulation 805 | 84 |
81 C.R. - Q.24
An arrangement that is treated as a purchase for domestic purposes nonetheless may give rise to withholding tax under paragraph 212(1)(d).
IT-303 "Know-How and Similar Payments to Non-Residents"
Meaning of royalty
7. The Department considers that the words "rent" and "royalty" are used in a broad sense and are not necessarily restricted to...
IT-494 "Hire of Ships and Aircraft from Non-Residents"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 215 - Subsection 215(1) | 64 | |
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(8) | 52 | |
| Tax Topics - Income Tax Act - Section 255 | 21 |
Articles
Raj Juneja, "Taxation of equity derivatives", 2015 CTF Annual Conference paper
Non-application to equity swaps (p. 17:20)
The CRA has taken the position that where a Canadian resident borrower of a security pays a lending or...
Scheuermann, "Income and Commodity Tax Aspects of Acquiring and Exploiting Technology", 1991 Conference Report, c. 45.
Fryers, "'Net Serve! One to Come!' (The Net Profits Interest in the Oil and Gas Industry - An In-Depth Analysis)", 1988 Canadian Petroleum Tax Journal, Spring 1988, p. 121
Discussion of the meaning of "royalty".
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 17 |
Subparagraph 212(1)(d)(i)
Cases
The Queen v. St. John Shipbuilding & Dry Dock Co. Ltd., 80 DTC 6272, [1980] CTC 352 (FCA)
In obiter dicta it was suggested that lump-sum payments for a non-exclusive licence to use computer programs in the design of ships were covered...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | lump sum for indefinite right to use property not a royalty | 126 |
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
Although the portions of a one-time payment attributable to the acquisition of a trade name and logo clearly came within s. 212(1)(d)(i), and a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | failure of Minister to allocate | 57 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum paid irrespective of user not "royalty" | 143 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 13 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "including" enlarges | 105 |
Quality Chekd Dairy Products Association v. MNR, 67 DTC 5303, [1967] CTC 452 (Ex Ct)
The taxpayer, which was a U.S.-resident corporative association of dairy companies, received a fee from a Canadian member that was, in part, a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 54 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 134 |
See Also
Zainul and Shazma Holdings Ltd. o/a Holiday Inn Hinton v. The Queen, 2004 DTC 3015, 2004 TCC 527 (Informal Procedure)
A lump-sum "application fee" paid by the taxpayer to a non-resident corporation, which carried on a business of granting Holiday Inn franchises,...
Brad-Lea Meadows Ltd. v. MNR, 90 DTC 1269, [1990] 1 CTC 2306 (TCC)
An Arizona corporation without share capital ("Best Western") which was formed by a number of independent motel owners as a non-profit association...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 66 |
Grand Toys Ltd. v. MNR, 90 DTC 1059, [1990] 1 CTC 2165 (TCC)
Payments which the taxpayer made to a non-resident joint venture arguably as the consideration for an exclusive distributorship, did not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | 99 |
ITC of Canada Ltd. v. Min. of Rev., [1979] CTC 277 (S.C.O.)
An Ontario corporation which was engaged in the business of importing films or videotapes from its U.S. parent and making them available to...
Technical Tape Corp. v. MNR, 64 DTC 428 (TAB)
The taxpayer entered into a written agreement for the provision to it in the United States by an American company of technical advice and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 78 |
Administrative Policy
16 August 2017 Internal T.I. 2017-0701291I7 - Exclusive Distributorship Rights
Canco and NRco (which is a resident under Article IV of the Treaty, has no permanent establishment in Canada and deals at arm’s length with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum non-contingent payment for distributorship right was not a royalty | 120 |
| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was for a restrictive covenant | 279 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(i) | a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was subject to s. 212(1)(i) withholding | 216 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | lump sum paid for distributorship rights was not a royalty | 243 |
18 November 2013 Internal T.I. 2011-0399581I7 F - Application of section 212(1)(d) ITA
Canco is granted an exclusive licence, bearing a royalty, by NRCo (an arm's length resident of Ireland) in respect of patents and know-how for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(viii) | cost-sharing agreement with catch-up payment provisions qualified | 87 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | contingent payments came within broad Treaty definition of royalty | 132 |
14 January 2013 External T.I. 2012-0443561E5 F - Part XIII re: royalties paid for tv program
Canco, which carried on a video production business in Canada made payments to USco for the use of a TV show concept (the "Format"), which it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | payments based on production costs of a television program were a royalty | 139 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | copyright exception applicable to use of TV format in producing a Canadianized TV production | 112 |
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
A Canco enters a Franchise Agreement with a USCo under which Canco has the exclusive right in Canada to use USCo's trade-marks, brands, know-how...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | procurement licence fee | 300 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | procurement licence fee | 165 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iv) | allocation to exclusivity payments | 100 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) | procurement licence fee | 164 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | procurement licence fees were not based on sales, or use in making sales | 422 |
27 August 2012 External T.I. 2011-0416181E5 - US internet publisher - CDN resident advertiser
A US website publisher, which qualifies for benefits under the Canada-US Income Tax Convention and does not have a server or other permanent...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | 153 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | 345 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | per-click fees paid to US website publisher were for its services in uploading ads and were not Treaty royalties | 180 |
2 August 2012 External T.I. 2011-0422781E5 - Part XIII tax-fee to use on-line trading program
The taxpayer inquired about whether Part XIII tax is payable in respect of a "licence fee" paid to a non-resident for access to "an on-line...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | fee for software use is not generally a royalty unless Treaty so directs | 105 |
Income Tax Technical News, No. 23, 18 June 2002
Notwithstanding its revised position on the terms of the Royalties Articles in most treaties, CCRA continues to be of the view that Part XIII tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 89 |
6 June 1994 External T.I. 9337485 - Partie XIII — Droit d'utilisation de logiciels information
The position of Revenue Canada that a payment for the use of, or the right to use, software in Canada is caught by s. 212(1)(d)(vi) applies even...
23 January 1998 980005
The distinction between shrink-wrap software and customs software was explained as turning, in part, on whether the purchaser/licensee was aware...
26 April 1995 External T.I. 9502165 - SYSTEMS/OPERATING SOFTWARE
In a situation where ... systems/operating software is sold in a manner that is similar to the sale of shrink-wrap computer software and is sold...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | shrink wrap exception applied to systems software | 83 |
12 September 1994 External T.I. 9319685 - WITHHOLDING TAX- COMPUTER SOFTWARE ROYALTES
Payments made by a Canadian resident to a non-resident for shrink-wrap or packaged computer software will be treated as proceeds from the sale of...
20 April 1994 Internal T.I. 9409740 - WITHHOLDING TAX - SOFTWARE MAINTENANCE FEES
Discussion of application of Part XIII to annual "maintenance" fees paid by Canadian customers to foreign software developers. "It may be...
93 C.R. - Q. 29
A payment to a non-resident for the use of, or the right to use, a custom computer software program for a period of indefinite duration is subject...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 48 |
6 March 1991 T.I. (Tax Window, No. 1, p. 12, ¶1136)
Where a Canadian resident enters a software licensing agreement with a non-resident for use of a computer program and also enters into a...
6 April 1990 T.I. (September 1990 Access Letter, ¶1441)
In order for payments for software services provided by the supplier of the software not to be considered payment in connection with the use of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | 75 |
Articles
Turro, "U.S. Government Grapples with Treatment of Income from Software, while Industry Interests Battle among Themselves", Tax Notes International, Vol. 8, No. 25, June 20, 1994, p. 1615.
Boidman, "Continuing Cross-Border Software Controversy", Tax Management International Journal, February 11, 1994, p. 90.
K.J. Murray, "Computer Software: Canadian and Cross-Border Issues", 1993 Conference Report, C. 27
Discussion of possibility that the "purchase" by a Canadian licensee of a custom software modification will be exempt from Canadian withholding...
Chapin-Fortin, "Revenue Canada Hard on Software", CA Magazine, December 1993, p. 30.
Subparagraph 212(1)(d)(ii)
See Also
Hasbro Canada Inc. v. The Queen, 98 DTC 2129, [1999] 1 CTC 2512 (TCC)
The taxpayer, which was a Canadian manufacturer and distributer of toys in Canada, paid fixed commissions expressed as a percentage of the...
Administrative Policy
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
A Canco enters a franchise agreement with a USCo under which Canco has the exclusive right in Canada to use USCo's trade-marks, brands, know-how...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | fee for purchase right | 175 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | procurement licence fee | 165 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iv) | allocation to exclusivity payments | 100 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) | procurement licence fee | 164 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | procurement licence fees were not based on sales, or use in making sales | 422 |
21 September 2012 External T.I. 2012-0457951E5 - Fee for Information
In response to a question as to whether the payment by a Canadian insurance broker (Aco) to a US insurance broker (Bco) of a percentage of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | information on customer leads was exempted as information on commercial experience | 262 |
11 April 1995 External T.I. 9419675 - PAYMENT FOR SERVICES
Where a Canadian corporation, in the business of securing tenants for Canadian landlords, pays a finder's fee to a non-resident corporation equal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | 89 |
16 March 1993 T.I. (Tax Window, No. 30, p. 15, ¶2478)
The provision by a non-resident engineering company of the conclusions of its research by means of a training course given outside Canada to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | 95 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 7 | 33 |
Subparagraph 212(1)(d)(iii)
See Also
Hasbro Canada Inc. v. The Queen, 98 DTC 2129, [1999] 1 CTC 2512 (TCC)
The taxpayer, which was a Canadian manufacturer and distributor of toys in Canada, paid fixed commissions expressed as a percentage of the...
Administrative Policy
24 September 2015 External T.I. 2013-0495611E5 - Withholding on incentive payments to non-residents
A Canadian resident manufacturing corporation ("Canco") pays the non-resident employees, of non-resident dealers selling its products outside...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration | no withholding on payment to non-resident employee of 3rd party | 143 |
| Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(1) | T4A reporting of payments to non-resident employee of 3rd party | 84 |
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
Under a franchise agreement with a USCo, Canco is required to pay USCo a fixed monthly fee, a percentage of gross receipts, and a "Procurement...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | fee for purchase right | 175 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | procurement licence fee | 300 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iv) | allocation to exclusivity payments | 100 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) | procurement licence fee | 164 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | procurement licence fees were not based on sales, or use in making sales | 422 |
27 August 2012 External T.I. 2011-0416181E5 - US internet publisher - CDN resident advertiser
A US website publisher, which qualifies for benefits under the Canada-US Income Tax Convention and does not have a server or other permanent...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | 153 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | clicks fees to website | 156 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | per-click fees paid to US website publisher were for its services in uploading ads and were not Treaty royalties | 180 |
11 April 1995 External T.I. 9419675 - PAYMENT FOR SERVICES
Where a Canadian corporation, in the business of securing tenants for Canadian landlords, pays a finder's fee to a non-resident corporation equal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | 89 |
2 March 1995 Internal T.I. 9433667 - WITHHOLDING TAX ON OIL MARKETING FEES
Marketing fees would be exempt from Part XIII tax to the extent that they were paid for services performed by the non-resident in connection with...
16 March 1993 T.I. (Tax Window, No. 30, p. 15, ¶2478)
Payment for services of a non-resident engineer at an hourly rate of $125 would not appear to dependent upon the "use to be made of" or the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | 39 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 7 | 33 |
Subparagraph 212(1)(d)(iv)
Administrative Policy
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
In suggesting that a portion of a Canco's franchise fees paid to a USCo were subject to withholding under s. 212(1)(d)(iv), CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | fee for purchase right | 175 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | procurement licence fee | 300 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | procurement licence fee | 165 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) | procurement licence fee | 164 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | procurement licence fees were not based on sales, or use in making sales | 422 |
Subparagraph 212(1)(d)(v)
Administrative Policy
3 December 2019 CTF Roundtable Q. 10, 2019-0824461C6 - Earnout payments to non-residents
Shareholders of Canco sell their shares, which are not taxable Canadian property, to an arm’s-length third purchaser for a purchase price that...
21 April 2015 External T.I. 2013-0494251E5 - 128.1(4) and Part XIII tax on future payments
At the time of his emigration from Canada to the US, "Mr. X" was entitled to the "Payments" from a Canadian resident who had purchased a client...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) | right to client list utilization payments | 115 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | client list utilization payments to U.S. resident | 180 |
4 December 2012 Internal T.I. 2011-0431871I7 - Part XIII and Procurement Fees
A Canco enters a franchise agreement with a USCo under which Canco has the exclusive right in Canada to use USCo's trade-marks, brands, know-how...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | fee for purchase right | 175 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(ii) | procurement licence fee | 300 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) | procurement licence fee | 165 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iv) | allocation to exclusivity payments | 100 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | procurement licence fees were not based on sales, or use in making sales | 422 |
Subparagraph 212(1)(d)(vi)
See Also
Rogers Communications Inc. v. Society of Composers, Authors and Music Publishers of Canada, 2012 SCC 35, [2012] 2 S.C.R. 283
The Supreme Court found that Internet streaming of musical works falls within the exclusive right in s. 3(1)(f) of the Copyright Act "in the case...
Entertainment Software Association v. Society of Composers, Authors and Music Publishers of Canada, 2012 SCC 34, [2012] 2 S.C.R. 231
The Society of Composers, Authors and Music Publishers of Canada ("SOCAN") would negotiate with individual game publishers (collectively...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Legislative History | 294 |
Syspro Software Ltd. v. The Queen, 2003 DTC 931, 2003 TCC 498
The taxpayer, which was a distributor of software licensed to it by a non-resident, was entitled to exemption for royalties paid by it to the...
Angoss International Ltd. v. R., 99 DTC 567, [1999] 2 CTC 2259 (TCC)
A lump-sum payment made for a non-exclusive licence to source code to be used by the taxpayer in manufacturing software to be sold by it was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum payment for a non-exclusive licence was similar to royalty | 47 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 47 |
Apple Computer, Inc. v. Mackintosh Computers Ltd.; Apple Computer, Inc. v. 115778 Canada Inc., [1990] 2 S.C.R. 209
A computer program, which originated in copyrightable written form, continued to be protected by copyright when it was replicated in the circuitry...
Bishop v. Stevens, [1990] 2 S.C.R. 467
The respondent (Bishop) composed music and lyrics to a song and licensed the rights to a performing rights society (“CAPAC”). Stevens, a...
Administrative Policy
18 February 2022 Internal T.I. 2020-0836351I7 - 212(1)(d)/Copyrights/Trademarks/XXXXXXXXXX
Royalties were payable by Canco to a non-resident for the right to use copyright and trademarks in connection with the design, manufacturing and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | royalties used outside Canada generally were subject to s. 212(1)(d) | 105 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(x) | allocation of royalty between Canadian and non-resident business ordinarily made based on the respective revenues generated | 166 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) | allocation of expenses of a business carried on in two different countries | 338 |
29 November 2022 CTF Roundtable Q. 13, 2022-0950641C6 - Part XIII Tax on Royalties Paid on Broadcasting
2011-0404511C6 confirmed CRA’s longstanding position in IT-303SR, so that the exception in s. 212(1)(d)(vi) applied to all payments for...
17 May 2022 IFA Roundtable Q. 2, 2022-0926461C6 - Royalty Apportionment 212(1)(d)(vi)
Should the application of the s. 212(1)(d)(vi) exception be based on an apportionment of a royalty payment between copyrights and trademarks...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | CRA has authority to re-apportion where a royalty allocation is not “reasonable and realistic” | 215 |
5 January 2018 External T.I. 2017-0697811E5 - Paragraph 212(1)(d)(vi)
A group of corporations, formed and resident in the United States (collectively, “USIP”), own the copyright to artistic work (the “Copyright...
5 November 2014 External T.I. 2013-0506191E5 - copyright photographs
A Canadian company pays a non-resident for the use of the photographs in connection with television in Canada (for example in a backdrop to a film...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | payments for photos before incorporation into TV program were exempt | 109 |
2014 Ruling 2012-0462801R3 - Application of Part XIII
Forco, a non-resident tax-exempt organization and a qualifying person (presumably under Art. XXIXA.2 of the Canada-U.S. Convention) will...
1 May 2014 External T.I. 2013-0514291E5 F - Redevances sur une oeuvre musicale dans un film
Would copyright royalties paid by a resident of Canada to a resident of Belgium respecting the production or reproduction of a musical work to be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | s. 212(5) exclusion does not apply to copyright royalty for music used in film | 114 |
14 January 2013 External T.I. 2012-0443561E5 F - Part XIII re: royalties paid for tv program
Canco, which carried on a video production business in Canada made payments to USco for the use of a TV show concept (the "Format"), which it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | payments based on production costs of a television program were a royalty | 139 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | payments based on TV production costs came within s. 212(1)(d)(i) | 193 |
23 November 2012 External T.I. 2012-0441091E5 - Software License Agreement
A Canadian company, which manufactures and distributes equipment in Canada, acquires the right to reproduce and distribute software in the...
23 August 2012 External T.I. 2011-0427181E5 - Computer Software Licence Fee
The taxpayer asked whether withholding tax would apply to a bundled "licence fee" for the exclusive right to market and distribute a non-resident...
3 May 2011 IFA Roundtable, 2011-0404511C6 - 212(1)(d)(vi)
In response to a question that noted that subsequent to the issuance on 19 September 1985 of a Special Release amendment to IT-303 which...
26 May 2011 External T.I. 2010-0354921E5 F - 212(1)d)(vi) - Exemption redevance droit d'auteur
Canco pays royalties (including a lump sum advance royalty that is non-refundable irrespective of revenues generated) to the U.S. holder of...
2011 Ruling 2011-0399141R3 - Software Distribution, Medium
an indirect Canadian subsidiary of a non-resident corporation ('Corp A") has been the Canadian distributor of products manufactured by Corp A,...
13 June 2003 External T.I. 2003-0018975 - Royalty and copyright
Bars paid fees to display artistic or dramatic works that arrived at the bar by a satellite transmission, DVD, video-cassette or through the...
30 October 2002 External T.I. 2002-0147545 - Royalty-Reproduction Distribution
Where a foreign corporation ("Forco") has licensed to its Canadian subsidiary ("Canco") a master copy of software and granted Canco the right to...
23 January 1998 Internal T.I. 9730076 - COPYRIGHT ROYALTIES
Given that s. 3(1)(a) of the Copyright Act referred to the right to "produce, reproduce, perform or publish any translation of the work", a...
16 February 1996 External T.I. 9512725 - PART XIII - PAYMENTS FOR RIGHT TO BROADCAST
A payment made for the right to broadcast a live scripted production staged in the U.S. would not be exempt under s. 212(1)(d)(vi) nor under...
17 August 1995 External T.I. 9419825 - 7661-1 PART XIII SOFTWARE DISTRIBUTOR ROYALTIES
Where a Canadian subsidiary ("Canco") of a non-resident corporation ("Forco") imports computer hardware from Forco that is pre-loaded with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | 80 |
3 August 1994 External T.I. 9108855 - WITHHOLDING TAX COMPUTER SOFTWARE ROYALTIES
An arrangement whereby Canco is licensed by USco the right to produce or reproduce computer software in consideration for a royalty based on the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 66 |
1994 Canadian Tax Foundation "Comments on Withholding Tax Rules on Imported Software" 9430560
"The right to make back-up copies as provided by the Copyright Act is not considered a right to produce or reproduce ... . In addition, where a...
26 February 1993 T.I. (Tax Window, No. 29, p. 19, ¶2448)
The printing of cartoon characters on bedspreads, sheets and pillow cases would be considered "production or reproduction" for purposes of s....
14 October 1992 Rulings Tax Seminar Central Region 9230057
"We would definitely recommend that the Department challenge any arrangement where a Canadian distributor supposedly enters into an agreement...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 69 |
October 1992 Central Region Rulings Directorate Tax Seminar, Q. L (May 1993 Access Letter, p. 231)
RC will challenge any arrangement where a Canadian distributor supposedly enters into an agreement with a non-resident to acquire the right to...
17 August 1995 External T.I. 9419825 - 7661-1 PART XIII SOFTWARE DISTRIBUTOR ROYALTIES
"Where a payment is made to a non-resident for the right to make a copy of a computer software program for back-up purposes such payment would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | 108 |
12 March 1992 External T.I. 5-910839
With respect to the withholding tax status of royalties to be paid by a Canadian licensee to an arm's length U.S. licensor, RC stated that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 17 - Subsection 17(1) | 64 |
4 March 1992 Memorandum (Tax Window, No. 17, p. 11, ¶1781)
Where a Canadian resident acquired the rights to manufacture and sell games under licence from a non-resident, payments in respect of the design...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 27 |
13 February 1992 Memorandum (Tax Window, No. 16, p. 22, ¶1744)
Payment made to a non-resident for the right to produce or reproduce computer software is not subject to withholding tax; however, payments for...
4 January 1991 T.I. (Tax Window, Prelim. No. 3, p. 15, ¶1086)
Payments made for the right to use a computer program, for the right of a distributor to sell or sublicense a computer program to end-users or...
1990 Answers Provided by Scarborough District Office (May 1990 Access Letter, ¶1200, Q. 03)
Where a foreign owner of a computer program grants the right to a Canadian resident to produce or reproduce computer software in Canada for...
88 C.R. - F.Q.41
Where the end-user of a computer program has the right to make copies for his own personal use such a taxpayer is not making use of a copyright...
86 C.R. - Q.13
Software, notwithstanding Apple, does not qualify for copyright protection.
Articles
Brown, "The Canadian Income Tax Treatment of Computer Software Payments", 1994 Canadian Tax Journal, Vol. 42, No. 3, p. 593.
D'Aurelio, "International Issues: A Revenue Canada Perspective", 1990 Conference Report, c. 44, under "Copyright Royalties"
Subparagraph 212(1)(d)(viii)
Administrative Policy
18 November 2013 Internal T.I. 2011-0399581I7 F - Application of section 212(1)(d) ITA
Canco is granted an exclusive licence, bearing a royalty, by NRCO (an arm's length resident of Ireland) in respect of patents and know-how for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | seriatim benchmark lump sums, although not royalties, came within s. 212(1)(d) | 154 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | contingent payments came within broad Treaty definition of royalty | 132 |
Articles
Biasio, "Cost Sharing in the 1990s and Beyond: Part 2", International Tax Planning, 1997 Canadian Tax Journal, Vol. 45, No. 1, p. 131.
Tremblay, "Canadian International Tax Considerations", 1997 International Tax Planning, Vol. VI, No. 1, p. 364.
Subparagraph 212(1)(d)(ix)
Administrative Policy
2007 Ruling 2006-0211991R3 - Part XIII Tax
Payments made pursuant to a bare boat charter were rental payments for the use of or the right to use corporeal property and accordingly were...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 5 | bareboat charter not giving rise to PE in Canada | 152 |
8 February 1993 Memorandum (Tax Window, no. 29, p.18, ¶2421)
Where a Canadian resident has chartered a fishing vessel from a non-resident to be supplied from a Canadian port, with the cargo to be delivered...
Subparagraph 212(1)(d)(x)
Administrative Policy
18 February 2022 Internal T.I. 2020-0836351I7 - 212(1)(d)/Copyrights/Trademarks/XXXXXXXXXX
Royalties were payable by Canco to a non-resident for the right to use copyright and trademarks in connection with the design, manufacturing and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | royalties used outside Canada generally were subject to s. 212(1)(d) | 105 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) | onus on CRA to allocate between exempt and taxable royalties – but not bound by licence agreement allocation | 250 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) | allocation of expenses of a business carried on in two different countries | 338 |
Paragraph 212(1)(h) - Pension benefits
Cases
The Queen v. Sun Life Assurance Co. of Canada, 80 DTC 6333, [1980] CTC 418 (FCA)
The tax imposed by s. 212(1) "must be paid 'on every amount' irrespective of its capital or income nature." An argument that in order to be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 221 - Subsection 221(1) - Paragraph 221(1)(h) | 44 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | 86 |
Forest v. The Queen, 80 DTC 6149 (FCTD)
Non-resident individuals who, pursuant to the terms of a registered pension fund plan and after resigning from their positions with their Canadian...
Administrative Policy
13 February 2015 External T.I. 2014-0541961E5 - RPP and CPP payments-former employee of Consulate
Registered pension plan and Canada pension plan payments received by a Canadian citizen working for at a Canadian consulate and Canadian embassy...
IT-76R2 "Exempt Portion of Pension when Employee has been a Non-Resident"
Paragraph 212(1)(i)
Cases
Pangaea One Acquisition Holdings XII S.A.R.L. v. Canada, 2020 FCA 21
A non-resident shareholder (“Pangaea”) of a Canadian corporation (“Public Mobile”) was required under the terms of the unanimous...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | payment to another shareholder for its agreement to join in a share sale was for a restrictive covenant | 245 |
See Also
Pangaea One Acquisition Holdings XII S.À.R.L. v. The Queen, 2018 TCC 158, aff'd 2020 FCA 21
A non-resident shareholder (“Pangaea”) of a Canadian corporation (“Public Mobile”) was required under the terms of the unanimous...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | agreement with another shareholder to enter into a share sale with a 3rd party was a restrictive covenant | 216 |
Administrative Policy
16 August 2017 Internal T.I. 2017-0701291I7 - Exclusive Distributorship Rights
In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | Farmparts likely excluded application to product distributorship right/product name on product not a valuable use of trademark | 507 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum non-contingent payment for distributorship right was not a royalty | 120 |
| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was for a restrictive covenant | 279 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | lump sum paid for distributorship rights was not a royalty | 243 |
Articles
Joint Committee, "Impact of Pangaea case", 10 January 2024 Joint Committee Submission
Policy concern re withholding on debenture consent fees (pp. 1-2)
- In a 2020 submission, the Joint Committee expressed concerns that a broad...
Joint Committee, "Impact of Pangaea Case", 10 August 2020 Joint Committee Submission
It is recommended in light of the broad textual approach taken in Pangaea as to what was a “restrictive covenant” that the Act (perhaps s....
Paragraph 212(1)(j.1) - Retiring allowances
Cases
The Queen v. Albino, 94 DTC 6071, [1994] 1 CTC 205 (FCTD)
In 1973, the taxpayer agreed to participate in an "incentive performance plan" of his employer under which the taxpayer was granted "share...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 145 | |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 57 |
Administrative Policy
20 March 2015 External T.I. 2014-0534301E5 - Canadian Withholding Tax on Retiring Allowance
A lump sum payment in respect of a loss of employment is made by Canco to a non-resident of Canada (the "Taxpayer") who had been seconded to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(e) - Subparagraph 115(2)(e)(i) | retiring allowance paid to non-resident for loss of non-resident employment | 56 |
| Tax Topics - Treaties - Income Tax Conventions - Article 15 | retiring allowance paid to French individual for loss of non-resident employment | 73 |
| Tax Topics - Treaties - Income Tax Conventions - Article 22 | retiring allowance paid to French individual for loss of non-resident employment | 73 |
19 March 2002 External T.I. 2002-0120785 F - Allocation de retraite - 212(13)(d)
An individual worked for 10 years in Canada for a Canadian corporation, then ceased to be resident and worked the next 12 years for a sister U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 215 - Subsection 215(2) | s. 215(2) applicable to retiring allowance paid by US employer where it invoiced the sister Canadian corporation, as the predecessor employer, therefor | 177 |
Paragraph 212(1)(l) - Registered retirement savings plan payments
Administrative Policy
10 October 2014 APFF Roundtable, 2014-0534821C6 F - Question 2 - APFF Round Table
At the 2013 APFF Roundtble, CRA indicated that a non-resident annuitant making a contribution to an RRSP or RRIF is required to provide a social...
11 October 2013 Roundtable, 2013-0495281C6 F - Question 9 - APFF Round Table
Has the position in 2002-0141355 - that an RRSP can be transferred to the RRSP of a surviving non-resident spouse, who can open an RRSP, even if...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.1) | deemed receipt of refund of premiums for amount paid to executor, with deemed benefit to recipient spouse | 275 |
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.1) | transfer of RRIF by executor to RRIF of surviving spouse | 328 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(q) | direct transfer to RRIF of surviving non-resident spouse | 297 |
Paragraph 212(1)(q)
Administrative Policy
11 October 2013 Roundtable, 2013-0495281C6 F - Question 9 - APFF Round Table
Upon the death of a RRIF annuitant, Part XIII does not appear to provide an exemption similar to that provided for an RRSP (paragraph 212(1)(l))...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(l) | transfer to RRSP or RRIF of surviving non-resident spouse: SIN required; payment can be made directly to RRSP/RRIF of surviving spouse in accordance with joint instructions even where no specific non-will designation is made | 542 |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.1) | deemed receipt of refund of premiums for amount paid to executor, with deemed benefit to recipient spouse | 275 |
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.1) | transfer of RRIF by executor to RRIF of surviving spouse | 328 |
Paragraph 212(1)(r) - Registered education savings plan
Administrative Policy
3 June 2014 External T.I. 2013-0504641E5 - RESP payments to a non-resident person
Where a non-resident person subject to paragraph 212(1)(r) receives educational assistance payments from an RESP, that person cannot file a...