See Also
Cloutier v. The Queen, 2003 DTC 317 (TCC)
The taxpayer, who was a U.S. citizen and a resident of Canada, was not exempt under Article XIX on employment income earned by her as a teacher in the United States. Article XIX of the Canada-U.S. Convention was intended to deal with citizens working abroad in the discharge of a governmental function. "Functions of a governmental nature" was not intended to include functions that are commonly found in the private sector, such as education. Public school and university teaching services were intended to be governed by Article XV.
Administrative Policy
10 February 2022 External T.I. 2019-0819651E5 F - Pension from China
A Canadian resident who had retired from the civil service of the State of China received a pension that was not taxable under the domestic tax law of China. After finding that the pension was taxable as superannuation or pension benefits under s. 56(1)(a)(i), CRA found that the pension was not exempted from Canadian income tax under the Canada-China Treaty given that the exemption under Art. 18 was stated to exclude pensions.
13 October 2009 External T.I. 2009-0342091E5 F - Revenu d'emploi exonéré par Conv.- frais de garde
The wife of a couple, both of whom were Canadian residents, was a French national who received a salary that was exempt under Art. XIX, para. 1 of the Convention with France, that was not reported on a T4 information slip. CRA stated:
First, the total employment income amounts shown in box 14 of a taxpayer's T4 slips should generally be reported on line 101 of a return. Instead, a taxpayer's income from employment for a taxation year that is not reported on a T4 slip should be reported on line 104 of the taxpayer’s return for that year.
Furthermore, a taxpayer's claim for exemption from Canadian tax under paragraph 1 of Article XIX of the Canada-France Convention in respect of salaries, wages and other similar remuneration, other than pensions paid by France, must be claimed on line 256 of the taxpayer's return with the words "Income not taxable under a convention" as a clarification. Thus, this exemption from Canadian tax is technically provided to a taxpayer through a deduction in computing taxable income under subparagraph 110(1)(f)(i). Note that a taxpayer may attach an explanatory note to the taxpayer’s return to substantiate the claim for a deduction.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 63 - Subsection 63(2) | child care expenses could only be claimed by the spouse with the lower net income, notwithstanding that her income was Treaty-exempt | 72 |
19 June 2002 External T.I. 2000-0020525 F - Article 19 Canada - France Tax Treaty
Regarding whether salary paid to the correspondent was taxable only in France by virtue of Art. 19 of the Canada-France Convention, CCRA noted that it had been informed by the French tax authorities that in their view the payer was an "instrumentality of France" which did not carry on a trade or business, and then indicated that it had transferred the file to the International Legislative Affairs Group of the Legislative Policy Division - a group is responsible for determining the meaning of "instrumentality" in situations where Canada may not agree with the foreign government's position and for resolving such interpretative base disagreements, if any, as a member of the competent authority through Mutual Agreement Procedures.
T.I. 921585 (December 1992 Access Letter, p. 24, ¶C111-048)
A Canadian citizen who is employed at the Canadian embassy in Washington will be subject to tax in Canada even after he has acquired U.S. citizenship.