Income Tax Conventions

Table of Contents

Income Tax Conventions
Cases(15)
See Also(11)
Administrative Policy(2)
Articles(12)

Subtopics

Cases

Royal Bank of Canada v Commissioners for His Majesty's Revenue and Customs, [2023] EWCA Civ 695

Falk LJ was assisted in arriving at a restrictive interpretation of Art. 6 of the Canada-U.K. Treaty in light of the French version of the Treaty.

Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 6 an oil and gas royalty is not income from immovable property under the Canada-U.K. Treaty where the recipient never had any interest in the oil field 531
Tax Topics - Treaties - Income Tax Conventions - Article 12 reference to IP royalties does not extend to someone who has no interest in the IP 165

Canada v. Alta Energy Luxembourg S.A.R.L., 2021 SCC 49

In considering whether there had been a treaty-shopping abuse of the Canada-Luxembourg Treaty (concluded in 1999), and before declining to follow...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) Treaty shopping to avoid capital gains tax on Canadian resource assets was contemplated, and not a Treaty abuse 660
Tax Topics - Treaties - Income Tax Conventions - Article 13 utilization of the business property exemption by a Luxembourg conduit accorded with the bargain negotiated by Canada, which was to encourage investment by such investors 605
Tax Topics - Treaties - Income Tax Conventions - Article 4 a company resident under Luxembourg domestic law (its legal seat was there), and that was “liable to be liable to tax,” was resident there for Treaty purposes even though a conduit 366
Tax Topics - Statutory Interpretation - Treaties additional consideration in Treaty context of giving effect to the contractual bargain 237

Canada v. Sommerer, 2012 DTC 5126 [at 7219], 2012 FCA 207

After finding that s. 75(2) did not apply to attribute to the Canadian-resident taxpayer a taxable capital gain realized by an Austrian private...

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Hunter Douglas Ltd. v. The Queen, 79 DTC 5340, [1979] CTC 424 (FCTD)

The court considered an admission of an officer of the Department of National Revenue, who was examined for discovery, that a change in the...

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Tax Topics - Treaties - Income Tax Conventions - Article 10 151

Vauban Productions v. The Queen, 75 DTC 5371, [1975] CTC 511 (FCTD), aff'd 79 DTC 5186, [1979] CTC 262 (FCA)

Addy, J. indicated that he was "conscious" of the principle that "a liberal interpretation should be given to a tax convention".

Coblentz v. The Queen, 96 DTC 6531, [1996] 3 CTC 295 (FCA.)

The Court found that the U.S. Treasury Department Technical Explanation facilitated its understanding of Article 18 of the Canada-U.S. Convention.

Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 18 142

Canada (Attorney General) v. Kubicek Estate, 97 DTC 5454 (FCA)

Before going on to refer to a passage contained in the U.S. Treasury Technical Explanation to the Canada-U.S. Income Tax Convention, MacGuigan...

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Wolf v. Canada, 2002 DTC 6853, 2002 FCA 96

Before considering the French version of Article XV of the Canada-U.S. Convention in detail, Décary J.A. referred (at p. 6867) to the principle...

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Pacific Network Services Ltd. v. MNR, 2002 DTC 7585 (FCTD)

"The applicants' assertion that Article 26 of the Canada-France Income Tax Convention should receive a strict and literal interpretation should...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 231.2 - Subsection 231.2(1) 98
Tax Topics - Treaties - Income Tax Conventions - Article 27 implied power to exercise requirements for information 111

R. v. Melford Developments Inc., 82 DTC 6281, [1982] CTC 330, [1982] 2 S.C.R. 504

The meaning that a term used in a Convention had at the time that the Convention was brought into the laws of Canada by statue will not be altered...

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Gladden Estate v. The Queen, 85 DTC 5188, [1985] 1 CTC 163 (FCTD)

"Contrary to an ordinary taxing statute a tax treaty or convention must be given a liberal interpretation with a view to implementing the true...

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Tax Topics - Treaties - Income Tax Conventions - Article 13 deemed disposition 65

Thiel v. Federal Commissioner of Taxation, 90 A.TC 4717 (HC of A.)

McHugh J. stated (p. 4727):

"Because the interpretation provisions of the Vienna Convention reflect the customary rules for the interpretation of...

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Tax Topics - Treaties - Income Tax Conventions - Article 3 "enterprise" includes an isolated adventure 124

Crown Forest Industries Ltd. v. Canada, 95 DTC 5389, [1995] 2 S.C.R. 802, [1995] 2 CTC 64

Before referring to various extrinsic materials, Iacobucci J. stated (at p. 5396) that "reviewing the intentions of the drafters of a taxation...

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Tax Topics - Treaties - Income Tax Conventions - Article 4 198

Edwards v. Canada, 2003 DTC 5667, 2003 FCA 378

In finding that the Canada-China Convention did not apply to the Hong Kong Special Administrative Region of the People's Republic of China in...

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Allchin v. Canada, 2004 DTC 6468, 2004 FCA 206

Malone J.A. stated (at p. 6470) that "while technical explanations attached to treaties are not binding on the Court, they may be accepted as...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 180 - Subsection 180(3) correctness standard for isolated legal error 62
Tax Topics - Treaties - Income Tax Conventions - Article 4 101

See Also

Société générale valeurs mobilières inc. v. The Queen, 2016 TCC 131, aff'd 2017 FCA 3

At issue in a motion brought under Rule 58(1) was whether Art. XXII(2) of the Canada-Brazil Treaty contemplated that a Canadian foreign tax credit...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 24 Brazilian tax sparing provision did not permit the taxpayer to shelter Canadian-source income 594
Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) foreign source interest reduced by related expenses 412

MIL (Investments) S A v. The Queen, 2006 DTC 3307, 2006 TCC 460, aff'd 2007 FCA 236

In March 1993 an individual ("Boulle") transferred his shares of a Canadian public junior exploration company ("DFR") to the taxpayer, which was a...

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Edwards v. The Queen, 2002 DTC 185 (TCC), aff'd supra 2003 DTC 5667, 2003 FCA 378

In the course of considering whether the China-Canada Income Tax Convention applied to Hong Kong income taxes after Hong Kong became part of the...

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Canada v. Prévost Car Inc., 2009 DTC 5721, 2009 FCA 57

Décary, J.A. stated (at para. 11) that it was appropriate to refer to OECD commentaries issued subsequent to the date of a Treaty (at para....

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 10 200

RMM Canadian Enterprises Inc. v. The Queen, 97 DTC 302, [1998] 1 C.T.C. 2300 (TCC)

In finding that a deemed dividend arising under s. 84 did not result from an "alienation" for purposes of Article XIII of the Canada-U.S. Income...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 159 - Subsection 159(3) 167
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) 188
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) 235
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) purchaser of cash-rich company without any signifcant separate role did not deal at arm's length 177
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) application of s. 84(2) to sale of cash-rich company to accommodation party who quickly paid cash proceeds therefor 222
Tax Topics - Treaties - Income Tax Conventions - Article 10 116

Cheek v. The Queen (2002), docket 1999-1113-IT-G (TCC)

Mogan T.C.J. stated that:

"When there is any inconsistency between the provisions of the [Canada-U.S.] Convention and the provisions of the Income...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 16 60

Merrins v. The Queen, 2002 DTC 1848 (TCC)

In finding that the taxpayer (who was a resident of Ireland in receipt of both Canadian old age security payments and also pension income that...

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Ben Nevis (Holdings) Ltd. v. Revenue and Customs Commissioners, [2013] BTC 485, [2013] EWCA Civ 578

Before rejecting the taxpayer's submission that Article 25A of the Convention between South Africa and the U.K., which if it permitted the South...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity creation of new collection right did not entail retrospectivity 182
Tax Topics - Statutory Interpretation - Revenue Rule 124
Tax Topics - Treaties - Income Tax Conventions - Article 26A new tax collection Article applied to old tax debts 228

Sommerer v. The Queen, 2011 DTC 1162 [at 845], 2011 TCC 212, aff'd 2012 FCA 207

The Canadian-resident taxpayer transferred shares to an Austrian private foundation, which held the shares under an arrangement which was found by...

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Irish Bank Resolution Corporation Ltd v Revenue and Customs, [2020] EWCA Civ 1128

HMRC increased the UK branch profits of the Irish taxpayers’ branch banking, or home mortgages, businesses by attributing to their UK permanent...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 7 interest expenses of PE could be reduced if it had insufficient free capital compared to the arm’s length standard 534

Satyam Computer Services Limited v Commissioner of Taxation, [2018] FCAFC 172

The Indian taxpayer (Satyam) argued unsuccessfully before the Full Federal Court of Australia “that tax treaties are, and can only be,...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 24 a sourcing rule in the Australia-India Treaty imposed tax on a deemed royalty received by an Indian company 391

Administrative Policy

24 March 2016 Internal T.I. 2016-0634191I7 - Income from a U.S. trust

Canada has stated that the [U.S. Treasury] Technical Explanations accurately reflect understandings reached in the course of negotiations with...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(5) - Paragraph 108(5)(a) income distributions from non-resident trust were property income 123

28 May 2015 IFA Roundtable Q. 12, 2015-0581521C6 - IFA 2015 Q.12: Canada-Switzerland Treaty

A corporation resident in Switzerland ("Swissco") wholly-owns "Holdco," which wholly-owns "Canco"). S. 214(3)(a) deems Canco to pay a dividend to...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 10 resolution of conflicting French and English Treaty versions of Swiss Treaty in taxpayer's favour 89

Articles

Stéphane Austry, John Avery Jones, Philip Baker, Peter Blessing, Robert Danon, Shefali Goradia, Koichi Inoue, Jürgen Lüdicke, Guglielmo Maisto, Toshio Miyatake, Angelo Nikolakakis, Kees van Raad, Richard Vann, Bertil Wiman, "The Proposed OECD Multilateral Instrument Amending Tax Treaties", Bulletin for International Taxation, December 2016, p. 683

Two alternatives for operation of MLI (p. 683)

[W]e do not know whether [the MLI] will operate by either:

(1) modifying existing bilateral...

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Justice Marshall Rothstein, "An Overview of the Supreme Court of Canada", Bulletin for International Taxation (IBFD), January/February 2016, p. 20.

International rules of interpretation (pp. 24-25)

[W]hen interpreting treaties, Canadian courts generally use international rules of...

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Richard G. Tremblay, Peter MacDonald, "General-Anti-Avoidance Rule and Treaty Shopping: Why Courts Should Not Be Asked to Do the Job of Legislators", International Tax, Vol. XII, No. 2, 2004, p. 844.

Michael Lang, "Income Allocation Issues Under Tax Treaties", Tax Notes International, April 21, 2014, p. 285.

No implications of specific safe harbours (p. 287)

Therefore, a special provision is no indication that something else applies outside its...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 13 506

Klaus Vogel, "The Influence of the OECD Commentaries on Treaty Interpretation", Bulletin for International Fiscal Documentation, Vol. 54, No. 12, 2000, p.612.

D. Sandler, J. Li, "The Relationship between Domestic Anti-Avoidance Legislation and Tax Treaties", 1997 Canadian Tax Journal, Vol. 45, No. 5, p. 891.

David A. Ward, "Conflicting (Domestic and Treaty) Interpretational Approaches in the Two Countries: A Canadian Perspective", Cross-Border Taxation Issues and Development 1996, International Fiscal Association, p. 531.

Déry, David A. Ward, "Interpretation of Double Taxation Conventions", Cahiers de droit Fiscal International, Volume LXXVIIIa, p. 259.

Michael N. Kandev, Brandon Wiener, "Some Thoughts on the Use of Later OECD Commentaries after Prévost Car", Tax Notes International, 25 May 2009, p. 667

Baxter, Double Taxation Agreements and International Tax Law, Sweet Maxwell (London, 1991).

James S. Hausman, "Interpreting Tax Treaties - A Canadian Perspective", Bulletin for International Fiscal Documentation, Vol. 55, No. 3, March 2001, p. 93.

David A. Ward, "Principles to be Applied in Interpreting Tax Treaties", 1977 Canadian Tax Journal, p. 263.

Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Treaties 0

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