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.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 3 | 117 |
See Also
Niemeijer v. The Queen, 2010 DTC 1029 [at 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.
Administrative Policy
26 March 2001 External T.I. 2001-0070165 F - Conventions fiscales et lois provinciales
Where a Quebec resident who was resident in a treaty country under the tie-breaker rule was otherwise subject to both Quebec tax and Part XIII tax on property income received from Quebec, the ARQ had suggested that Canada should reduce its rate of withholding to 0%. CCRA stated:
Canadian tax treaties only cover “the taxes imposed by the Government of Canada under the Income Tax Act” (see, for example, paragraph 2 of Article II of the Canada-United States Tax Convention). Canadian tax treaties therefore have no effect with respect to taxes levied under provincial tax legislation, whether or not those taxes are levied by the federal government.
Consequently, in the situation referred to in the question submitted to senior officials of Revenu Québec at the 1996 APFF convention, the federal government would not be required to reduce its own tax rate to 0% in order to comply with the terms of the tax treaties to which it is a party.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | Canada will not reduce its withholding rate to 0% to make room for Quebec taxes imposed on the same property income | 197 |