GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 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 Mexico on profits, income or gains arising in Mexico 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 that is a resident of Mexico pays a dividend to a company that is a resident of Canada which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Mexico 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 by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 Mexico on profits, income or gains arising in Mexico shall be deducted from any Canadian tax payable in respect of such profits, income or gains;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 that is a resident of Mexico pays a dividend to a company that is a resident of Canada which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Mexico by that first-mentioned company in respect of the profits out of which such dividend is paid; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 c)
c) where, in accordance with any provision of the Convention, income derived by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 In the case of Mexico, double taxation shall be avoided as follows: a) residents of Mexico may credit against the Mexican tax on income arising in Canada the income tax paid in Canada in any amount not exceeding the tax payable in Mexico on such income; and b) subject to the existing provisions of the law of Mexico, companies which are residents of Mexico may also credit against Mexican tax on dividends paid by companies that are residents of Canada the income tax paid in Canada on the profits out of which the dividends are paid.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) residents of Mexico may credit against the Mexican tax on income arising in Canada the income tax paid in Canada in any amount not exceeding the tax payable in Mexico on such income; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) subject to the existing provisions of the law of Mexico, companies which are residents of Mexico may also credit against Mexican tax on dividends paid by companies that are residents of Canada the income tax paid in Canada on the profits out of which the dividends are paid.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 For the purposes of this Article, profits, income or gains of a resident of a Contracting State which 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–Mexico Tax Convention Act, 2006 — C-6.85 1
1 Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or 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–Mexico Tax Convention Act, 2006 — C-6.85 2
2 The taxation on a permanent establishment which a resident 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 residents of that other State carrying on the same activities.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 which it grants to its own residents.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 9 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 5
5 Any provisions of paragraph 4 shall not affect the operation of any provision of the taxation laws of a Contracting State: a) relating to the deductibility or recharacterization of interest and which is in force on the date of signature of this Convention (including any subsequent modification of such provisions that does not change the general nature thereof); or b) adopted after such date by a Contracting State and which is designed to ensure that a person who is not a resident of that State does not enjoy, under the laws of that State, a tax treatment that is more favourable than that enjoyed by residents of that State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) relating to the deductibility or recharacterization of interest and which is in force on the date of signature of this Convention (including any subsequent modification of such provisions that does not change the general nature thereof); or
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) adopted after such date by a Contracting State and which is designed to ensure that a person who is not a resident of that State does not enjoy, under the laws of that State, a tax treatment that is more favourable than that enjoyed by residents of that State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 6
6 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 which is other or more burdensome than the taxation and connected requirements to which other similar enterprises 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–Mexico Tax Convention Act, 2006 — C-6.85 7
7 Notwithstanding the provisions of Article 2, this Article shall apply to all taxes imposed by a Contracting State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 which gives rise to taxation not in accordance with the Convention.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 A Contracting State shall not, after the expiry of the time limits provided in its national 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 which 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–Mexico Tax Convention Act, 2006 — C-6.85 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 and may communicate with each other directly for the purpose of applying the Convention.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 5
5 If any difficulty or doubt arising as to the interpretation or application of the Convention cannot be resolved by the competent authorities pursuant to the preceding paragraphs of this Article, the case may be submitted for arbitration if both competent authorities and the taxpayer agree and the taxpayer agrees in writing to be bound by the decision of the arbitration board. The decision of the arbitration board in a particular case shall be binding on both States with respect to that case. The procedure shall be established in an exchange of notes between the Contracting States.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 6
6 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 this 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 23 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 The competent authorities of the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws of the Contracting States concerning taxes of every kind and description imposed by 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 Any information received under paragraph 1 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) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to taxes referred to in paragraph 1, 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–Mexico Tax Convention Act, 2006 — C-6.85 3
3 In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; b) to supply information which 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 which 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–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or
Canada–Mexico Tax Convention Act, 2006 — C-6.85 c)
c) to supply information which 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–Mexico Tax Convention Act, 2006 — C-6.85 4
4 If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information even though that other State may not need such information for its own purposes. The obligation contained in the preceding sentence is subject to the limitation of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 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–Mexico Tax Convention Act, 2006 — C-6.85 5
5 In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to ownership interests in a person.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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–Mexico Tax Convention Act, 2006 — C-6.85 1
1 The provisions of this Convention shall not be construed to restrict in any manner any exemption, allowance, credit or other deduction accorded: a) by the laws of a Contracting State in the determination of the tax imposed by that State; or b) by any other agreement entered into by a Contracting State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) by the laws of a Contracting State in the determination of the tax imposed by that State; or
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) by any other agreement entered into by a Contracting State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 the resident has an interest.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 The Convention shall not apply to any company, trust, partnership 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 of the company, trust, partnership or 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, partnership or other person) is substantially lower than the amount that would be imposed by the State if all of the shares of the capital stock of the company or all of the interests in the trust, partnership or any other entity, as the case may be, were beneficially owned by one or more individuals who were residents of that State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 Where under any provision of the Convention any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect of that income, is subject to tax by reference to the amount thereof that is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under the Convention in the first-mentioned Contracting State shall apply only to so much of the income as is taxed in the other Contracting State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 This Convention shall enter into force on the date on which the Contracting States exchange notes through diplomatic channels notifying each other that the last of such things has been done as is necessary to make the Convention applicable in Canada and in Mexico, as the case may be, and thereupon the Convention 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–Mexico Tax Convention Act, 2006 — C-6.85 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–Mexico Tax Convention Act, 2006 — C-6.85 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–Mexico Tax Convention Act, 2006 — C-6.85 2
2 The provisions of the Convention between the Government of Canada and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Ottawa on April 8, 1991, as well as the provisions of the Convention between the Government of Canada and the Government of the United Mexican States for the Exchange of Information with respect to Taxes signed at Mexico City on March 16, 1990 (hereinafter referred to as the “1990 Convention”) shall cease to 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 this 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 this Convention enters into force.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 this Convention enters into force; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 this Convention enters into force.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
This Convention shall continue in effect indefinitely but either Contracting State may, on or before June 30 of any calendar year after the year in which it entered into force, give to the other Contracting State a notice of termination in writing through diplomatic channels; 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, on or after the first day of January of the next following calendar year; and b) in respect of other taxes, for taxation years beginning on or after the first day of January of the next following calendar year.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 of the next following calendar year; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) in respect of other taxes, for taxation years beginning on or after the first day of January of the next following calendar year.
Canada–Mexico Tax Convention Act, 2006 — C-6.85
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective governments, have signed this Convention.
Canada–Mexico Tax Convention Act, 2006 — C-6.85
DONE in duplicate at Mexico City, this twelfth day of September 2006, in the English, French and Spanish languages, each version being equally authentic.
Canada–Mexico Tax Convention Act, 2006 — C-6.85
FOR THE GOVERNMENT OF CANADA G. Daniel Caron Deputy Head of Mission and Minister-Counsellor, Embassy of Canada to the United Mexican States
Canada–Mexico Tax Convention Act, 2006 — C-6.85
Deputy Head of Mission and Minister-Counsellor, Embassy of Canada to the United Mexican States
Canada–Mexico Tax Convention Act, 2006 — C-6.85
FOR THE GOVERNMENT OF THE UNITED MEXICAN STATES José Francisco Gil Diaz Secretary of Finance and Public Credit
Canada–Mexico Tax Convention Act, 2006 — C-6.85
At the moment of signing the Convention this day concluded between the Government of Canada and the Government of the United Mexican States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention.