Cases
Fowler v Commissioners for Her Majesty’s Revenue and Customs, [2020] UKSC 22
A U.K. domestic income tax provision deemed the diving activities of a South African resident in the North Sea to be the carrying on of a U.K...
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| Tax Topics - Treaties - Income Tax Conventions - Article 3 | deeming an employee to be an independent contractor did not oust the Treaty Employment Income Article | 462 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | principles in determining the scope of a deeming provision | 367 |
Fowler v HM Revenue and Customs, [2018] EWCA Civ 2544, rev'd 2020 UKSC 22
A U.K. domestic income tax provision deemed the diving activities of a South African resident in the North Sea to be the carrying on of a U.K...
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| Tax Topics - Treaties - Income Tax Conventions - Article 3 | a domestic provision deeming employment income to be from trade rendered it business profits for Treaty purposes | 517 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | domestic deeming provision had Treaty effect | 294 |
Gulfmark offshore N.S. Limited v. Canada, 2007 DTC 5563, 2007 FCA 302
Before the taxation year in question, the taxpayer, which was a U.K. company with a fleet of 27 supply vessels including a ship that was operated...
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| Tax Topics - Treaties - Income Tax Conventions - Article 27A | 105 |
Cudd Pressure Control Inc. v. Canada, 98 DTC 6630, [1999] 1 CTC 1 (FCA)
The taxpayer, which was resident in the United States, entered into a contract to provide two "snubbing" units to Mobil Oil Canada Ltd. for use in...
Utah Mines Ltd. v. The Queen, 92 DTC 6194, [1992] 1 CTC 306 (FCA)
The taxpayer, which was a U.S. corporation with a mining operation in B.C., was prohibited by s. 18(1)(m) from deducting royalties payable by it...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(m) | 141 | |
| Tax Topics - Statutory Interpretation - Treaties | 39 |
Sun Life Assurance Co. of Canada v. Pearson, 1986 BTC 282 (C.A.)
A statutory method of allocation whereby the portion of the gross profits of a Canadian life insurance company attributable to its U.K. branch...
Abed Estate v. The Queen, 82 DTC 6099, [1982] CTC 115 (FCA)
The exemption in Article I of the 1942 Canada - U.S. Convention, for the commercial profits of a U.S. enterprise that are not attributable to a...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(e) | no requirement to include a reserve if no evidence of its claiming in previous sale year | 160 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(7) | 133 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n) | taxpayer did not object to Minister deducting reserve | 159 |
Loeck v. The Queen, 78 DTC 6368, [1978] CTC 528 (FCTD), aff'd 82 DTC 6071, [1982] CTC 64 (FCA)
The German plaintiff owned and managed property in Hamburg that contained 17 rented apartments, and he was a shareholder in a public company that...
Ostime v. Australian Mutual Provident Society (1959), 38 TC 492 (HL)
Rule 3 applicable to Case III of Schedule D of the Income Tax Act, 1918 provided that a life insurance company with a head office overseas (in...
See Also
Vincent v. Agence du revenu du Québec, 2020 QCCQ 3605
From 2001 to May 2012, the taxpayer (“Vincent”), who was a lawyer and a Quebec resident, was a partner of KPMG Canada. He became a resident...
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| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | non-resident retired silent partner was a partner of Canadian firm | 372 |
Irish Bank Resolution Corporation Ltd v Revenue and Customs, [2020] EWCA Civ 1128
The Irish taxpayers, which carried on a UK branch banking business or a business of financing UK house purchases, were required to determine their...
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| Tax Topics - Treaties - Income Tax Conventions | subsequently-added material in OECD Commentaries could be reviewed if they were not inconsistent with contemporaneous commentaries | 228 |
GE Energy Parts Inc. v. Commissioner of Income Tax (International Taxation), ITA 621/2017, 21 December 2018 (High Court of Delhi)
Various non-resident General Electric companies employed non-resident employees (the “expatriates”) in an office in India to secure customers...
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| Tax Topics - Treaties - Income Tax Conventions - Article 4 | GE U.S. companies had a PE in India based on the intensive negotiation of their employees in India in contact negotiations | 326 |
Adobe Systems Inc. v. ADIT, W.P.(C) 2384/2013 (Delhi High Court)
The taxpayer, which was a U.S.-resident corporation not having any business operations in India, received software-related research and...
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| Tax Topics - Treaties - Income Tax Conventions - Article 5 | not carrying on business "through" sub's premises if no right to use them | 492 |
AB LLC and BD Holdings LLC v. Commrs. of South African Revenue Services, Case No. 13276, 15 May 2015, South Africa Tax Court
A US corporation, which spent 15 months based in the boardroom in South Africa of a South African client providing consulting services argued...
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| Tax Topics - Treaties - Income Tax Conventions - Article 5 | services PE was not required to be a fixed place of business – and a client boardroom so qualified anyway/double counting of days for 183-day test permitted | 563 |
Samuel Wuslich v. Minister of National Revenue, 91 DTC 704, [1991] 1 CTC 2473 (TCC)
In addition to carrying on an orthodontic practice at various locations in the U.S., the taxpayer also maintained a professional office in Regina....
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| Tax Topics - General Concepts - Illegality | 35 |
Administrative Policy
26 May 2016 IFA Roundtable Q. 2, 2016-0642061C6 - AOA & Notional Expenses
Notwithstanding the new wording of Article 7 of the OECD Model Convention and the OECD commentary thereon, CRA continues to consider (in light of
20 November 2014 Internal T.I. 2014-0539631I7 - Restrictive Covenants-Part XIII (Luxembourg)
After CanCo had sold shares of a partly-owned subsidiary (SubCo), it made a payment to the other share vendor (LuxCo) pursuant to what was assumed...
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| Tax Topics - Income Tax Act - Section 56.4 - Subsection 56.4(1) - Restrictive Covenant | restrictive covenant definition is broad | 102 |
| Tax Topics - Treaties - Income Tax Conventions - Article 22 | restrictive covenant payment not eligible for relief under Lux Treaty | 266 |
Canada-U.S. Income Tax Convention - Agreement between Competent Authorities on the interpretation of Article VII (Business Profits) CRA Notice dated 19 July 2012
The competent authorities of Canada and the US agreed on 26 June 2012 pursuant to Article XXVI, para. 3 (resolution of interpretive doubt), that...
14 November 2007 External T.I. 2007-0253321E5 - Non-resident withholding tax
Respecting whether franchise fees paid to a U.S. resident were subject to withholding tax, the Directorate stated that:
"Where a payment...
11 September 2007 External T.I. 2006-0195851E5 F - Crédit pour impôt étranger
Xco, a Canadian corporation without a permanent establishment in Romania and owning more than 50% of the shares of S.A.co, a Romanian corporation,...
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| Tax Topics - Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax | if Romania denies refund of withholding tax improperly held on management fees, CRA nonetheless will deny FTC | 323 |
6 February 2001 External T.I. 2000-0044095 F - Honoraires - retenue d'impôt non-résident
Regarding whether a Canadian resident corporation should withhold tax on fees it pays for services rendered in the United States by individuals...
5 February 2001 External T.I. 2000-0032695 F - Convention fiscale Canada-France
A CCPC (“Canco”) agreed to pay a French company (“Franceco”) for its consulting services, aimed at identifying and connecting with...
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| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(iii) - Clause 212(1)(d)(iii)(C) | profits based consulting fee paid to French company came within s. 212(1)(d)(iii)(C) | 80 |
Income Tax Technical News, No. 18, 16 June 2000
Discussion of Cudd Pressure case.
17 January 1996 External T.I. 9520065 - BORROWINGS EFFECTIVELY CONNECTED TO A PE
Before indicating that borrowings by a U.S. Parent to acquire flow-through shares issued by one of its wholly-owned subsidiaries would not be...
10 May 1995 External T.I. 9332355 F - Capital Gains
The Canada-Denmark Convention does not deal with the taxation of capital gains. Accordingly, the transfer of shares of a Canadian private company...
16 March 1993 T.I. (Tax Window, No. 30, p. 15, ¶2478)
Payment to a U.S.-resident engineer for his services would be exempt from Part XIII tax if such payments did not fall within Article XII of the...
6 January 1992 T.I. (Tax Window, No. 15, p. 14, ¶1679)
Re taxability of rental payments derived from the use of moveable property in Canada by a Norwegian limited partnership.
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| Tax Topics - Treaties - Income Tax Conventions - Article 3 | 129 |
IC 87-2 "International Transfer Pricing and Other International Transactions", para. 32
Most treaties do not require that management fees be treated as anything other than a component of industrial, commercial or business profits.
IT-468R "Management or Administration Fees Paid to Non-residents" (Archived) 29 December 1999
Where the treaty does not contain a specific article on management or administration fees, such fees paid to the non-resident will, to the extent...
Articles
Nathan Boidman, "How Will Revised Sourcing Rules Affect Sales of U.S.-Made Goods Abroad?", Tax Notes International, 10 February 2020, p. 655
Treaty-limits on what Canada may tax on sales by U.S. into Canada (p.658)
Under the prior version of Code s. 863, the gross revenue of a U.S....
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| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | 191 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 24 | 542 |
Joshua Lawrence, "New York Nexus Widens", Canadian Tax Highlights, Vol. 22, No. 8, August 2014, p. 1.
No physical nexus under NY franchise tax (p.1)
[U]nder New York's new nexus standard, any corporation "deriving receipts from activity" within New...
Michael Kobetsky, "Inter-Bank Loans: Determining a Branch's Business Profits Under Article 7 of the OECD Model", International Bureau for Fiscal Documentation, February 2005, p. 48.
David A. Ward, "Attribution of Income to Permanent Establishments", Canadian Tax Journal, Vol. 48, No. 3, 2000, p. 559.
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| Tax Topics - Income Tax Act - Section 10 - Subsection 10(2) | 0 |