GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 In determining the profits of a permanent establishment, there shall be allowed as deduction expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than as a reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 Nothing in this Article shall affect the application of any law of a Contracting State relating to the determination of the tax liability of a person in cases where the information available to the competent authority of that State is inadequate to determine the profits to be attributed to a permanent establishment, provided that law shall be applied, so far as the information available to the competent authority permits, consistently with the principles contained in this Article.
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
Income Tax Conventions Implementation Act, 1998 — I-3.53 6
6 No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
Income Tax Conventions Implementation Act, 1998 — I-3.53 7
7 For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
Income Tax Conventions Implementation Act, 1998 — I-3.53 8
8 Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 Notwithstanding the provisions of paragraph 1 and of Article 7, profits derived by an enterprise of a Contracting State from a voyage of a ship or aircraft where the principal purpose of the voyage is to transport passengers or property between places in the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 For the purposes of this Article, profits from the operation of ships or aircraft in international traffic include: (a) income from the rental on a bareboat basis of ships or aircraft; and (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise, where such rental, use or maintenance, as the case may be, is incidental to the operation of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) income from the rental on a bareboat basis of ships or aircraft; and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise,
Income Tax Conventions Implementation Act, 1998 — I-3.53
where such rental, use or maintenance, as the case may be, is incidental to the operation of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Where: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any income which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the income of that enterprise and taxed accordingly.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
Income Tax Conventions Implementation Act, 1998 — I-3.53
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any income which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the income of that enterprise and taxed accordingly.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 Where a Contracting State includes in the income of an enterprise of that State — and taxes accordingly — income on which an enterprise of the other Contracting State has been charged to tax in that other State and the income so included is income which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of tax charged therein on that income. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 A Contracting State shall not change the income of an enterprise in the circumstances referred to in paragraph 1 after the expiry of the time limits provided in its national laws and, in any case, after five years from the end of the year in which the income which would be subject to such change would, but for the conditions referred to in paragraph 1, have accrued to that enterprise.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed: (a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls at least 70 per cent of the voting power in the company paying the dividends; (b) 10 per cent of the gross amount of the dividends if the beneficial owner is a company that controls at least 25 per cent but less than 70 per cent of the voting power in the company paying the dividends; and (c) 15 per cent of the gross amount of the dividends in all other cases. The provisions of this paragraph shall not affect the taxation of the company on the profits out of which the dividends are paid.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls at least 70 per cent of the voting power in the company paying the dividends;
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) 10 per cent of the gross amount of the dividends if the beneficial owner is a company that controls at least 25 per cent but less than 70 per cent of the voting power in the company paying the dividends; and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (c)
(c) 15 per cent of the gross amount of the dividends in all other cases.
Income Tax Conventions Implementation Act, 1998 — I-3.53
The provisions of this paragraph shall not affect the taxation of the company on the profits out of which the dividends are paid.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The provisions of paragraph 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 Notwithstanding the provisions of paragraph 2: (a) interest arising in a Contracting State and paid in respect of indebtedness of the government of that State or of a political subdivision or local authority thereof shall, provided that the interest is beneficially owned by a resident of the other Contracting State, be taxable only in that other State; (b) interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by any institution, the capital of which is wholly owned by the Government of that other State, which is specified and agreed in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) interest arising in a Contracting State and paid in respect of indebtedness of the government of that State or of a political subdivision or local authority thereof shall, provided that the interest is beneficially owned by a resident of the other Contracting State, be taxable only in that other State;
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by any institution, the capital of which is wholly owned by the Government of that other State, which is specified and agreed in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income which is subjected to the same taxation treatment as income from money lent by the laws of the State in which the income arises. However, the term “interest” does not include income dealt with in Article 10.
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 The provisions of paragraph 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
Income Tax Conventions Implementation Act, 1998 — I-3.53 6
6 Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
Income Tax Conventions Implementation Act, 1998 — I-3.53 7
7 Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties or of the fees for technical services the tax so charged shall not exceed: (a) in the case of royalties 10 per cent of the gross amount of such royalties, (b) in the case of fees for technical services 7.5 per cent of the gross amount of such fees.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) in the case of royalties 10 per cent of the gross amount of such royalties,
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) in the case of fees for technical services 7.5 per cent of the gross amount of such fees.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including payments of any kind in respect of motion picture films and works on film, tape or other means of reproduction for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The term “fees for technical services” as used in this Article means payments of any kind to any person, other than payments to an employee of the person making the payments, in consideration for any services of a managerial, technical or consultancy nature rendered in the Contracting State of which the payer is a resident.
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 The provisions of paragraph 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
Income Tax Conventions Implementation Act, 1998 — I-3.53 6
6 Royalties or fees for technical services shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties or fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation to make the payment was incurred, and such royalties or fees for technical services are borne by such permanent establishment or fixed base, then such royalties or fees for technical services shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
Income Tax Conventions Implementation Act, 1998 — I-3.53 7
7 Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties or fees for technical services paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 Gains from the alienation of shares of a company that is a resident of a Contracting State may be taxed in that State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4 may be taxed in both Contracting States in accordance with the respective laws of those States.
Income Tax Conventions Implementation Act, 1998 — I-3.53 1
1 Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has or had such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.