Article 15

Cases

Hale v. The Queen, 90 DTC 6481, [1990] 2 CTC 247 (FCTD), aff'd 92 DTC 6473 (FCA)

While resident in Canada, the taxpayer was granted rights under the employee stock option plan of his Canadian employer and further rights (the...

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Words and Phrases
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See Also

Garcia v. The Queen, 2007 DTC 1593, 2007 TCC 548 (Informal Procedure)

A bonus received in 2003 by the taxpayer when he was a resident of Canada was taxable in Canada, notwithstanding that the bonus was earned in 2002...

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Words and Phrases
derived

Sutcliffe v. The Queen, 2006 DTC 2076, 2005 TCC 812

The taxpayer was a U.S. resident who was employed by Air Canada as a pilot on domestic flights (between Toronto and other Canadian cities) and...

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Prescott v. The Queen, 96 DTC 1372, [1995] 2 CTC 2068 (TCC)

Remuneration of $2,474 that the taxpayer (a U.S. resident) earned from employment at Simon Fraser University was exempt under paragraph 2 of...

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Administrative Policy

9 July 2021 Internal T.I. 2021-0893981I7 - CERB received by non-residents

Regarding the treatment of payments (“CERB Payments”) made pursuant to the Canada Emergency Response Benefit Act (the “CERB Act”) to an...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 120 - Subsection 120(1) CERB payments subject to the additional federal tax under s. 120(1) 117
Tax Topics - Treaties - Income Tax Conventions - Article 24 elimination of double taxation Art. addresses relief for taxation by Treaty partner of CERB payments 182

Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021

CRA referred to the travel restrictions imposed by governments or businesses in response to the COVID-19 crisis as a safety measure for their...

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7 September 2016 External T.I. 2014-0559751E5 - Subsection 115(3)

S. 115(3) allocates 100%, 50% or 0% of the employment income of a non-resident pilot from a flight to Canada based on whether both, one out of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(3) comparison of the Treaty method for allocating non-resident pilot income to the domestic (s. 115(3)) method should be done on an annual basis 155

20 July 2015 Internal T.I. 2012-0457671I7 - Treaty triangulation - Article 15

Mr. X, who is an employee of BCo, is a resident of State X for treaty purposes. BCo, which is a resident of State B for treaty purposes, carries...

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20 March 2015 External T.I. 2014-0534301E5 - Canadian Withholding Tax on Retiring Allowance

A lump sum payment in compensation for a loss of employment at a French subsidiary is made by Canco to a non-resident of Canada who had been...

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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 - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(j.1) retiring allowance paid to non-resident for loss of non-resident employment 149
Tax Topics - Treaties - Income Tax Conventions - Article 22 retiring allowance paid to French individual for loss of non-resident employment 73

10 February 2015 External T.I. 2013-0484501E5 - Treaties Article XV

Part-way through a year an individual ceased to be Canadian-resident and became a U.S. resident but derived employment income from the exercise of...

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16 June 2014 External T.I. 2013-0515431E5 - International traffic and airline enterprise

During peak season, Canco, which transports passengers to destinations inside and outside Canada, is supplied planes and non-resident pilots and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) application of Sutcliffe/Price allocation approach were s. 115(3) not applicable 150
Tax Topics - Income Tax Act - Section 115 - Subsection 115(4) non-resident's provision of crew and aircraft to Canadian airline 150
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Traffic non-resident's provision of crew and aircraft to Canadian airline 109
Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(c) non-resident's provision of crew and aircraft to Canadian airline 109
Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) Reg. 102 withholding or waiver notwithstanding Treaty exemption 166

26 February 2014 External T.I. 2013-0487961E5 - Excluded Right or Interest

A senior employee of Canco, who is entitled to receive "free shares" from treasury as determined by management, with a vesting period of 4 to 6...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(10) - excluded right or interest - (c) unvested rights to free shares 143

3 February 2014 External T.I. 2012-0464541E5 - Article 15 of the Canada-Germany Income Tax Treaty

One of the components of the safe-harbour rule in Art. 15(2)(a) of the Canada-Germany Treaty is that the employee is present in Canada for a...

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6 July 2012 Internal T.I. 2012-0440741I7 - stock option benefit derived by US resident

USCo, which is a qualifying person for purposes of the Canada-US Income Tax Convention and is a wholly-owned subsidiary of a Canadian public...

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23 January 2012 External T.I. 2011-0418281E5 - Employment income - treaty exemption

Where US Co (not having a permanent establishment in Canada) provides the services of a US-resident employee for less than 183 days to its...

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17 June 2011 External T.I. 2011-0403541E5 - "employer"/ "person"

Respecting Art. XV(2)(b) of the Canada-US Convention:

[T]he intention is to determine who, in fact, is exercising the functions of employer. In...

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25 January 2010 Internal T.I. 2009-0319951I7 - Article 15 & definition of permanent establishment

ACo is a British company that performed seismic surveys offshore Canada. BCo is a Norwegian company that provided a crew to Aco under a service...

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IC-6R2 para. 95 "Required Withholding from Amounts Paid to Non-Resident Persons Performing Services in Canada"

CRA has adopted the OECD position that the words "borne by" mean that the expenses allowable as a deduction in computing taxable income.

20 March 2002 Internal T.I. 2002-0126537 - Article XV(2); Employee Stock Options

A U.S. resident employee of a Canadian corporation was paid salary of $7,000 by it and granted stock options in respect of which he ultimately...

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3 September 1997 Internal T.I. 9714337 - STOCK OPTION BENEFIT EXERCISED BY A NON-RESIDENT

The benefit realized by a resident of the U.S. on the exercise of an employee stock option was not taxable in Canada because he was not present in...

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17 February 1995 External T.I. 9400545 - RESIDENCE & SOURCE DEDUCTIONS (HAA7576-1)

"Where a U.S. resident who is not a factual or deemed resident of Canada exercises his employment in Canada, his employer ... is required to...

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2 December 1993 Internal T.I. 933330A - NON-RESIDENT EXERCISES STOCK OPTION(4093-U5-100-15)

Stock option benefits arising to an individual in respect of his Canadian employment after he ceased to be employed and while a resident of the...

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2 December 1993 9333306 - Non-resident Exercised a Stock Option

Where a U.S. resident exercises employee stock options issued to him by a U.S. public company while he was employed in Canada by a Canadian...

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2 December 1993 Memorandum 933330 (C.T.O. "Non-Resident Exercise Stock Option (4093-U5-100-15)")

A detailed example showing how a stock option benefit ultimately realized by a U.S.-resident individual is allocated among his years of employment...

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14 December 1992 912281A F - PROFESSIONS DÉPENDANTES\AVANTAGES EN VERTU D'UN EMPLOI

An employee stock option will be taxable under Paragraph 2 of Article XV of the Canada-U.S. Convention if, in the year the employment was...

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85 C.R. - Q.55

the phrase "borne by an employer in Article XV(2)(b) of the 1980 U.S. Convention means borne by the employer of the particular individual. Where a...

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Articles

Kasper Dziurdź, "Article 15 of the OECD Model: The 183 Day Rule and the Meaning of 'Borne by a Permanent Establishment'", OECD, Bulletin for International Taxation, March 2013, p. 122

After reviewing the history of Article 15(2) of the OECD Model Convention, commencing with the Germany-Sweden Income Tax and Capital Treaty...

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Susan Wooles, "Cross-border Employees: a Doubly Taxing Matter", Taxation of Executive Compensation and Retirement, Vol. 22, No. 4, November 2010, p. 1343

Includes discussion as to whether a US subsidiary is a contructive employer of a seconded Canadian employee; and whether employee loan-outs give...

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Luc de Broe, "Interpretation of Article 15(2)(b) of the OECD Model Convention: 'Remuneration paid by, or on Behalf of, an employer who is not a resident of the other state'", Bureau of International Fiscal Documentation, Vol. 54, No. 10, October 2000, p. 503.

Bradley A. Sakich, "Inbound Personal Services", 1996 Conference Report, c. 44 at 44:8-10

Discussion of meaning of "borne by" and of decision in C.I.R. v. JFP Energy Inc. (1990), 14 TRNZ 617 (C.A.).

Dewling, "U.S. Residents Rendering Temporary Services in Canada May Be Subject to Canadian Tax on Remuneration Received from U.S. Employer", Taxation of Executive Compensation and Retirement, November 1990, p. 355.

OECD

OECD Discussion Draft, Working Party 1 "OECD Model Tax Convention: Tax Treatment of Termination Payments," 25 June 2013: Recommended additions to...

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