Article 2 - Taxes Covered

Table of Contents

Cases

Beame v. Canada, 2004 DTC 6103, 2004 FCA 51

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.

See Also

Niemeijer v. The Queen, 2010 DTC 1029 [at 2677], 2009 TCC 624 (Informal Procedure)

Little, J. accepted the submission of the Crown that social security charges do not qualify as taxes. Accordingly, health insurance premiums paid by the taxpayer (a Canadian resident employed by KLM Royal Dutch Airlines) did not qualify as taxes for purposes of the Canada-Netherlands Income Tax Convention.

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