GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Conventions Implementation Act, 1998 — I-3.53 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 of 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, 1998 — I-3.53 (a)
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
Income Tax Conventions Implementation Act, 1998 — I-3.53 5
5 Notwithstanding the provisions of paragraphs 1 and 2, where a person (other than an agent of an independent status to whom paragraph 6 applies) is acting on behalf of an enterprise and has, and habitually exercises in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
Income Tax Conventions Implementation Act, 1998 — I-3.53 6
6 An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
Income Tax Conventions Implementation Act, 1998 — I-3.53 7
7 The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Income Tax Conventions Implementation Act, 1998 — I-3.53 2
2 For the purposes of this Agreement, the term “immovable property” shall have the meaning which it has for the purposes of the relevant tax law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.
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 and with all other persons.
Income Tax Conventions Implementation Act, 1998 — I-3.53 3
3 In the determination of the profits of a permanent establishment, there shall be allowed those expenses that are deductible under the laws of the Contracting State in which the permanent establishment is situated and that are incurred for the purposes of that 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, 1998 — I-3.53 4
4 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 5
5 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 6
6 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 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 solely between places in the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 For the purposes of this Article, (a) the term “profits” includes interest on sums generated directly from the operation of ships or aircraft in international traffic provided that such 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 provided that such charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) the term “profits” includes interest on sums generated directly from the operation of ships or aircraft in international traffic provided that such interest is incidental to the operation; and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (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 provided that such charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (i)
(i) the charter or rental of ships or aircraft,
Income Tax Conventions Implementation Act, 1998 — I-3.53 (ii)
(ii) the rental of containers and related equipment, and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (iii)
(iii) the alienation of ships, aircraft, containers and related equipment
Income Tax Conventions Implementation Act, 1998 — I-3.53
by that enterprise provided that such charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
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 profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, has not so accrued, may be included in the profits of that enterprise and taxed accordingly.
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 profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, has not so accrued, may be included in the profits of that enterprise and taxed accordingly.
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 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 that either controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends or holds directly at least 25 per cent of the capital of the company paying the dividends; (b) notwithstanding the provisions of subparagraph (a), in the case of dividends paid by a non-resident-owned investment corporation that is a resident of Canada, and in all other cases, 15 per cent of the gross amount of the dividends. 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, 1998 — I-3.53 (a)
(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company that either controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends or holds directly at least 25 per cent of the capital of the company paying the dividends;
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) notwithstanding the provisions of subparagraph (a), in the case of dividends paid by a non-resident-owned investment corporation that is a resident of Canada, and in all other cases, 15 per cent of the gross amount of the dividends.
Income Tax Conventions Implementation Act, 1998 — I-3.53
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, 1998 — I-3.53 3
3 The term “dividends” as used in this Article means income from 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 paragraphs 1 and 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 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 6
6 Notwithstanding any provision in this Agreement, Canada may impose on the earnings of a company attributable to permanent establishments in Canada, or on the alienation of immovable property situated in Canada by a company carrying on a trade in immovable property, tax in addition to the tax which would be chargeable on the earnings of a company that is a resident of Canada, provided that the rate of such additional tax so imposed shall not exceed 5 per cent of the amount of such earnings which have not been subjected to such additional tax in previous taxation years. For the purpose of this provision, the term “earnings” means: (a) the earnings attributable to the alienation of such immovable property situated in Canada as may be taxed by Canada under the provisions of Article 6 or of paragraph 1 of Article 13, and (b) 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: (i) 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, (ii) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein, (iii) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the provisions of the law of Canada, as they may be amended from time to time without changing the general principle hereof, regarding the computation of the allowance in respect of investment in property in Canada, and (iv) five hundred thousand Canadian dollars ($500,000) or its equivalent in the currency of the Republic of Croatia, less any amount deducted (A) by the company, or (B) by a person related thereto from the same or a similar business as that carried on by the company under this clause.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (a)
(a) the earnings attributable to the alienation of such immovable property situated in Canada as may be taxed by Canada under the provisions of Article 6 or of paragraph 1 of Article 13, and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (b)
(b) 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: (i) 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, (ii) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein, (iii) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the provisions of the law of Canada, as they may be amended from time to time without changing the general principle hereof, regarding the computation of the allowance in respect of investment in property in Canada, and (iv) five hundred thousand Canadian dollars ($500,000) or its equivalent in the currency of the Republic of Croatia, less any amount deducted (A) by the company, or (B) by a person related thereto from the same or a similar business as that carried on by the company under this clause.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (i)
(i) 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, 1998 — I-3.53 (ii)
(ii) all taxes chargeable in Canada on such profits, other than the additional tax referred to herein,
Income Tax Conventions Implementation Act, 1998 — I-3.53 (iii)
(iii) the profits reinvested in Canada, provided that the amount of such deduction shall be determined in accordance with the provisions of the law of Canada, as they may be amended from time to time without changing the general principle hereof, regarding the computation of the allowance in respect of investment in property in Canada, and
Income Tax Conventions Implementation Act, 1998 — I-3.53 (iv)
(iv) five hundred thousand Canadian dollars ($500,000) or its equivalent in the currency of the Republic of Croatia, less any amount deducted (A) by the company, or (B) by a person related thereto from the same or a similar business as that carried on by the company under this clause.
Income Tax Conventions Implementation Act, 1998 — I-3.53 (B)
(B) by a person related thereto from the same or a similar business as that carried on by the company
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 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, 1998 — I-3.53 3
3 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 8 or Article 10. Penalty charges for late payment shall not be regarded as interest for the purposes of this Article.
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The provisions of paragraphs 1 and 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 5
5 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 the payer 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 6
6 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 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 may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
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 cinematographic films, or films, tapes 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 (know-how).
Income Tax Conventions Implementation Act, 1998 — I-3.53 4
4 The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties 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 or property in respect of which the royalties 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 Royalties 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, whether the payer 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 pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.