GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) the term Canada used in a geographical sense, means the territory of Canada, including: (i) any area beyond the territorial sea of Canada which, in accordance with international law and the laws of Canada, is an area within which Canada may exercise rights with respect to the seabed and subsoil and their natural resources; (ii) the sea and airspace above every area referred to in subparagraph (i) in respect of any activity carried on in connection with the exploration for or the exploitation of the natural resources referred to therein;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (ii)
(ii) the sea and airspace above every area referred to in subparagraph (i) in respect of any activity carried on in connection with the exploration for or the exploitation of the natural resources referred to therein;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) the term Luxembourg used in a geographical sense, means the territory of the Grand Duchy of Luxembourg;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (c)
(c) the terms a Contracting State and the other Contracting State mean, as the context requires, Canada or Luxembourg;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (d)
(d) the terms person includes an individual, an estate, a trust, a company, a partnership and any other body of persons;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (f)
(f) the term enterprise of a Contracting State and enterprise of the other Contracting State mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (g)
(g) the term competent authority means: (i) in the case of Canada, the Minister of National Revenue or the Minister’s authorized representative, (ii) in the case of Luxembourg, the Minister of Finance or the Minister’s authorized representative;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (ii)
(ii) in the case of Luxembourg, the Minister of Finance or the Minister’s authorized representative;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (h)
(h) the term national means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.
Income Tax Conventions Implementation Act, 1999 — I-3.54 2
2 As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
Income Tax Conventions Implementation Act, 1999 — I-3.54 1
1 For the purposes of this Convention, the term resident of a Contracting State means any person who, under the laws of that State, is liable to tax therein by reason of that person’s domicile, residence, place of management or any other criterion of a similar nature. This term also includes a Contracting State or a political subdivision or local authority thereof or any agency or instrumentality of any such State, subdivision or authority. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.
Income Tax Conventions Implementation Act, 1999 — I-3.54 3
3 Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle the question. In the absence of such agreement, such person shall not be entitled to claim any relief or exemption from tax provided by the Convention.
Income Tax Conventions Implementation Act, 1999 — I-3.54 2
2 The term permanent establishment includes especially: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a mine, an oil or gas well, a quarry or any other place relating to the exploration for or the exploitation of natural resources.
Income Tax Conventions Implementation Act, 1999 — I-3.54 3
3 A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.
Income Tax Conventions Implementation Act, 1999 — I-3.54 4
4 Notwithstanding the preceding provisions of this Article, the term permanent establishment shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or for collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e) provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (d)
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or for collecting information, for the enterprise;
Income Tax Conventions Implementation Act, 1999 — I-3.54 3
3 In the determination of the profits of a permanent establishment, there shall be allowed those deductible expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses, whether incurred in the State in which the permanent establishment is situated or elsewhere.
Income Tax Conventions Implementation Act, 1999 — I-3.54 6
6 Where profits include items of income which are dealt with separately in other Articles of the Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
Income Tax Conventions Implementation Act, 1999 — I-3.54 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 where the principal purpose of the voyage is to transport passengers or goods exclusively between places in the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1999 — I-3.54 4
4 For the purposes of this Article, (a) the term profits includes (i) gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic, and (ii) interest on sums generated directly from the operation of ships or aircraft in international traffic if that interest is incidental to the operation; and (b) the term operation of ships or aircraft in international traffic by an enterprise, includes (i) the charter or rental of ships or aircraft, (ii) the rental of containers and related equipment, and (iii) the alienation of ships, aircraft, containers and related equipment by that enterprise if that charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) the term operation of ships or aircraft in international traffic by an enterprise, includes (i) the charter or rental of ships or aircraft, (ii) the rental of containers and related equipment, and (iii) the alienation of ships, aircraft, containers and related equipment by that enterprise if that charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (iii)
(iii) the alienation of ships, aircraft, containers and related equipment
Income Tax Conventions Implementation Act, 1999 — I-3.54 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, 1999 — I-3.54
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, 1999 — I-3.54 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 beneficial owner of the dividends is a resident of the other Contracting State, 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 (other than a partnership) which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends; (b) notwithstanding the provisions of subparagraph (a), 10 per cent of the gross amount of the dividends if the dividends are paid by a non-resident-owned investment corporation that is a resident of Canada to a beneficial owner that is a company (other than a partnership) that is a resident of Luxembourg and that owns at least 25 per cent of the capital of 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 in respect of the profits out of which the dividends are paid.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) notwithstanding the provisions of subparagraph (a), 10 per cent of the gross amount of the dividends if the dividends are paid by a non-resident-owned investment corporation that is a resident of Canada to a beneficial owner that is a company (other than a partnership) that is a resident of Luxembourg and that owns at least 25 per cent of the capital of the company paying the dividends; and
Income Tax Conventions Implementation Act, 1999 — I-3.54 (c)
(c) 15 per cent of the gross amount of the dividends in all other cases.
Income Tax Conventions Implementation Act, 1999 — I-3.54 3
3 Notwithstanding the provisions of paragraph 2, dividends paid by a company that is a resident of Luxembourg shall not be taxable in Luxembourg if the beneficial owner of the dividends is a company that is a resident of Canada and that has had during an uninterrupted period of two years preceding the date of payment of the dividends, a direct shareholding of at least 25 per cent of the voting stock of the company paying the dividends. This provision only applies to dividends attributable to that part of the shareholding that has been owned without interruption by the beneficial owner during such two-year period. Furthermore, the provisions of this paragraph shall only apply if the distributed dividend is derived from the active conduct of a trade or business in Luxembourg (other than the business of making or managing investments, unless such business is carried on by a banking or insurance company) and if such dividends are exempt in Canada.
Income Tax Conventions Implementation Act, 1999 — I-3.54 4
4 Notwithstanding the provisions of paragraph 2, dividends arising in a Contracting State and paid to an organization that was constituted and is operated in the other Contracting State exclusively to administer or provide benefits under one or more pension, retirement or other employee benefits plans shall be exempt from tax in the first-mentioned State provided that: (a) the organization is the effective 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 organization 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.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) the organization is the effective 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;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) the organization 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
Income Tax Conventions Implementation Act, 1999 — I-3.54 (c)
(c) the class of shares of the company on which the dividends are paid is regularly traded on an approved stock exchange.
Income Tax Conventions Implementation Act, 1999 — I-3.54 5
5 For the purposes of paragraph 4, the term approved stock exchange means: (a) in the case of dividends arising in Canada, a Canadian stock exchange prescribed for the purposes of the Income Tax Act ; (b) in the case of dividends arising in Luxembourg, the Luxembourg Stock Exchange; and (c) any other stock exchange agreed to in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) in the case of dividends arising in Canada, a Canadian stock exchange prescribed for the purposes of the Income Tax Act ;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) in the case of dividends arising in Luxembourg, the Luxembourg Stock Exchange; and
Income Tax Conventions Implementation Act, 1999 — I-3.54 (c)
(c) any other stock exchange agreed to in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 1999 — I-3.54 6
6 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, 1999 — I-3.54 7
7 The provisions of paragraphs 1, 2 and 3 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, 1999 — I-3.54 8
8 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 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, 1999 — I-3.54 9
9 Notwithstanding any provision in this Convention, Canada may impose on the earnings of a company attributable to permanent establishments in Canada, tax in addition to the tax which would be chargeable on the earnings of a company incorporated in Canada, provided that the rate of such additional tax so imposed shall not exceed 5 per cent. For the purpose of this provision, the term earnings means the profits attributable to such permanent establishments in Canada (including gains from the alienation of property forming part of the business property, referred to in paragraph 2 of Article 13, of such permanent establishments) in accordance with Article 7 in a year and previous years after deducting therefrom: (a) business losses attributable to such permanent establishments (including losses from the alienation of property forming part of the business property of such permanent establishments) in such year and previous years; (b) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein; (c) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the existing provisions of the law of Canada regarding the computation of the allowance in respect of investment in property in Canada, and any subsequent modification of those provisions which shall not affect the general principle hereof; and (d) five hundred thousand Canadian dollars ($500,000) less any amount deducted: (i) by the company, or (ii) by a person related thereto from the same or a similar business as that carried on by the company, under this subparagraph (d); for the purposes of this subparagraph (d), a company is related to another company if one company directly or indirectly controls the other, or both companies are directly controlled by the same person or persons, or if the two companies deal with each other not at arm’s length. The provisions of this paragraph shall also apply with respect to earnings from the alienation of immovable property in Canada by a company carrying on a trade in immovable property without a permanent establishment in Canada but only insofar as these earnings may be taxed in Canada in accordance with the provisions of Article 6 or paragraph 1 of Article 13.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) business losses attributable to such permanent establishments (including losses from the alienation of property forming part of the business property of such permanent establishments) in such year and previous years;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (b)
(b) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein;
Income Tax Conventions Implementation Act, 1999 — I-3.54 (c)
(c) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the existing provisions of the law of Canada regarding the computation of the allowance in respect of investment in property in Canada, and any subsequent modification of those provisions which shall not affect the general principle hereof; and
Income Tax Conventions Implementation Act, 1999 — I-3.54 (d)
(d) five hundred thousand Canadian dollars ($500,000) less any amount deducted: (i) by the company, or (ii) by a person related thereto from the same or a similar business as that carried on by the company, under this subparagraph (d); for the purposes of this subparagraph (d), a company is related to another company if one company directly or indirectly controls the other, or both companies are directly controlled by the same person or persons, or if the two companies deal with each other not at arm’s length.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (ii)
(ii) by a person related thereto from the same or a similar business as that carried on by the company,
Income Tax Conventions Implementation Act, 1999 — I-3.54
under this subparagraph (d); for the purposes of this subparagraph (d), a company is related to another company if one company directly or indirectly controls the other, or both companies are directly controlled by the same person or persons, or if the two companies deal with each other not at arm’s length.
Income Tax Conventions Implementation Act, 1999 — I-3.54
The provisions of this paragraph shall also apply with respect to earnings from the alienation of immovable property in Canada by a company carrying on a trade in immovable property without a permanent establishment in Canada but only insofar as these earnings may be taxed in Canada in accordance with the provisions of Article 6 or paragraph 1 of Article 13.
Income Tax Conventions Implementation Act, 1999 — I-3.54 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 beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
Income Tax Conventions Implementation Act, 1999 — I-3.54 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 Contracting 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 Luxembourg and paid to a resident of Canada shall be taxable only in Canada if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Export Development Corporation; and (c) interest arising in a Contracting State and paid to an organization that was constituted and is operated in the other Contracting State exclusively to administer or provide benefits under one or more pension, retirement or other employee benefit plans shall be exempt from tax in the first-mentioned State provided that: (i) the organization is the beneficial owner of the interest and is generally exempt from tax in the other State, and (ii) the interest is not derived from carrying on a trade or a business or from a related person.
Income Tax Conventions Implementation Act, 1999 — I-3.54 (a)
(a) interest arising in a Contracting State and paid in respect of indebtedness of the government of that Contracting 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, 1999 — I-3.54 (b)
(b) interest arising in Luxembourg and paid to a resident of Canada shall be taxable only in Canada if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Export Development Corporation; and