GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 In the case of Canada, double taxation shall be avoided as follows: (a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Korea on profits, income or gains arising in Korea shall be deducted from any Canadian tax payable in respect of such profits, income or gains; (b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Korea pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 25 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Korea by that first-mentioned company in respect of the profits out of which such dividend is paid; and (c) where, in accordance with any provision of the Convention, income derived or capital owned by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income or capital, take into account the exempted income or capital.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Korea on profits, income or gains arising in Korea shall be deducted from any Canadian tax payable in respect of such profits, income or gains;
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Korea pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 25 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Korea by that first-mentioned company in respect of the profits out of which such dividend is paid; and
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (c)
(c) where, in accordance with any provision of the Convention, income derived or capital owned by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income or capital, take into account the exempted income or capital.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 For the purposes of this Article, profits, income or gains of a resident of a Contracting State that may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith that is more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 The taxation on a permanent establishment that an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 Nothing in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own residents.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 4
4 Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith that is more burdensome than the taxation and any connected requirements to which other similar enterprises that are residents of the first-mentioned State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of a third State, are or may be subjected.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 5
5 In this Article, the term taxation means taxes that are the subject of this Convention.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance with the provisions of this Convention, that person may, irrespective of the remedies provided by the domestic law of those States, address to the competent authority of the Contracting State of which that person is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 The competent authority referred to in paragraph 1 shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 A Contracting State shall not, after the expiry of the time limits provided in its domestic laws and, in any case, after five years from the end of the taxable period to which the income concerned was attributed, increase the tax base of a resident of either of the Contracting States by including therein items of income that have also been charged to tax in the other Contracting State. This paragraph shall not apply in the case of fraud, wilful default or neglect.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 4
4 The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 5
5 The competent authorities of the Contracting States may consult together for the elimination of double taxation in cases not provided for in the Convention and may communicate with each other directly for the purpose of applying the Convention.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes imposed by the government of a Contracting State insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to taxes or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State; (b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or (c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State;
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (c)
(c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain that information in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State, notwithstanding that the other State may not, at that time, need such information for the purposes of its own tax.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 4
4 If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall endeavour to provide information under this Article in the form requested, such as depositions of witnesses and copies of unedited original documents (including books, papers, statements, records, accounts or writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 5
5 In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information, other than information related to residents of that State, solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because the information relates to ownership interests in a person.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State that is situated in the other Contracting State or in a third State shall be deemed for the purposes of the Convention to be a resident of the sending State if that individual is liable in the sending State to the same obligations in relation to tax on total income as are residents of that sending State.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 The Convention shall not apply to international organizations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State or group of States, being present in a Contracting State and who are not liable in either Contracting State to the same obligations in relation to tax on their total income as are residents thereof.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 The provisions of this Convention shall not be construed to restrict in any manner any exemption, allowance, credit or other deduction accorded by the laws of a Contracting State in the determination of the tax imposed by that State.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 Nothing in the Convention shall be construed as preventing a Contracting State from imposing a tax on amounts included in the income of a resident of that State with respect to a partnership, trust, or controlled foreign affiliate, in which that resident has an interest.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 The Convention shall not apply to any company, trust or other entity that is a resident of a Contracting State and is beneficially owned or controlled, directly or indirectly, by one or more persons who are not residents of that State, if the amount of the tax imposed on the income or capital of the company, trust or other entity by that State (after taking into account any reduction or offset of the amount of tax in any manner, including a refund, reimbursement, contribution, credit or allowance to the company, trust, or other entity or to any other person) is substantially lower than the amount that would be imposed by that State if all of the shares of the capital stock of the company or all of the interests in the trust or other entity, as the case may be, were beneficially owned by one or more individuals who were residents of that State. However, this paragraph shall not apply if 90 per cent or more of the income on which the lower amount of tax is imposed is derived exclusively from the active conduct of a trade or business carried on by it other than an investment business.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 4
4 For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute between them as to whether a measure falls within the scope of the Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 4 of Article 24 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 The Governments of the Contracting States shall notify each other through diplomatic channels that the constitutional requirements for the entry into force of this Convention have been complied with.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect: (a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year next following that in which the Convention enters into force; and (b) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) in respect of tax withheld at the source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year next following that in which the Convention enters into force; and
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 The Convention between Canada and the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed at Seoul on February 10, 1978 (hereinafter referred to as “the 1978 Convention”), shall cease to have effect from the dates on which this Convention becomes effective in accordance with paragraph 2.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 4
4 Notwithstanding the provisions of paragraph 2, where any greater relief from tax would have been afforded by the provisions of the 1978 Convention, any such provision as aforesaid shall continue to have effect for taxation years ending on or before the last day of the calendar year next following that in which the Convention enters into force.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 5
5 The 1978 Convention shall terminate on the first day of January of the second calendar year next following that in which the Convention enters into force.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
This Convention shall continue in effect indefinitely but either Contracting State may, on or before June 30 of any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination. In such event, the Convention shall cease to have effect: (a) in respect of tax withheld at the source on amounts paid or credited to non-residents, after the end of that calendar year; and (b) in respect of other taxes, for taxation years beginning after the end of that calendar year.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) in respect of tax withheld at the source on amounts paid or credited to non-residents, after the end of that calendar year; and
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) in respect of other taxes, for taxation years beginning after the end of that calendar year.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
IN WITNESS WHEREOF the undersigned, duly authorized to that effect by their respective Governments, have signed this Convention.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
DONE in duplicate at Ottawa, this 5 th day of September, 2006, in the English, French and Korean languages, each version being equally authentic.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
FOR THE GOVERNMENT OF CANADA V. Peter Harder Deputy Minister of Foreign Affairs
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA Yim Sung-joon Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Canada
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Canada
Canada–Korea Income Tax Convention Act, 1980 — C-6.5
At the signing of the Convention between the Government of Canada and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the “Convention”), the undersigned have agreed upon the following provisions which shall be an integral part of the Convention:
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 1
1 With reference to subparagraph (a) of paragraph 1 of Article 2 of the Convention, it is understood that Korea has agreed to include the “inhabitant tax” and the “special tax for rural development” based on Korea’s understanding that the political subdivisions of Canada do not impose withholding tax on income arising in their respective subdivisions and paid to non-residents of Canada and that the political subdivisions recognize and take into account the provisions of Canada’s income tax agreements or conventions.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 2
2 With reference to Article 10 of the Convention, the Contracting States may, through an exchange of diplomatic notes, agree to the insertion in that Article of the following provisions which will have effect from the date of the later of the two notes:
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 “7
“7 Notwithstanding the provisions of paragraph 2, dividends arising in a Contracting State and paid to an organisation that is operated in the other Contracting State exclusively to administer or provide benefits under one or more pension, retirement or employee benefits plans shall be exempt from tax in the first-mentioned State if: (a) the organisation is the beneficial owner of the shares on which the dividends are paid, holds those shares as an investment and is generally exempt from tax in the other State; (b) the organisation does not own directly or indirectly more than 5 per cent of the capital or 5 per cent of the voting stock of the company paying the dividends; and (c) the class of shares of the company on which the dividends are paid is regularly traded on an approved stock exchange.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) the organisation is the beneficial owner of the shares on which the dividends are paid, holds those shares as an investment and is generally exempt from tax in the other State;
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) the organisation does not own directly or indirectly more than 5 per cent of the capital or 5 per cent of the voting stock of the company paying the dividends; and
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (c)
(c) the class of shares of the company on which the dividends are paid is regularly traded on an approved stock exchange.
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 8
8 For the purposes of paragraph 7, the term approved stock exchange means: (a) in the case of dividends arising in Korea, the Korea Stock Exchange and the Korea Securities Dealers Automated Quotations (KOSDAQ); (b) in the case of dividends arising in Canada, a Canadian stock exchange prescribed for the purposes of the Income Tax Act ; and (c) any other stock exchange agreed to in letters exchanged between the competent authorities of the Contracting States.”
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (a)
(a) in the case of dividends arising in Korea, the Korea Stock Exchange and the Korea Securities Dealers Automated Quotations (KOSDAQ);
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (b)
(b) in the case of dividends arising in Canada, a Canadian stock exchange prescribed for the purposes of the Income Tax Act ; and
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 (c)
(c) any other stock exchange agreed to in letters exchanged between the competent authorities of the Contracting States.”
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 3
3 With reference to Article 11 of the Convention, the Contracting States may, through an exchange of diplomatic notes, agree to the insertion in that Article of the following provision which will have effect from the date of the later of the two notes:
Canada–Korea Income Tax Convention Act, 1980 — C-6.5 “9
“9 Interest arising in a Contracting State and paid to a resident of the other Contracting State that is operated exclusively to administer or provide benefits under one or more pension, retirement or employee benefits plans shall not be taxable in the first-mentioned State provided that: (a) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State; and (b) the interest is not derived from carrying on a trade or a business or from a related person.”