GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada–Mexico Tax Convention Act, 2006 — C-6.85 7
7 An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other 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 and that, in their commercial or financial relations with the enterprise, conditions are not made or imposed that differ from those generally agreed to by independent agents.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 8
8 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 For the purposes of this Convention, the term immovable property shall have the meaning which it has for the purposes of the taxation 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property and to income from the alienation of such property.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 1
1 The business profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on or has carried on business as aforesaid, the business profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. If a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State and alienates property to persons in that other State that is identical or similar to property alienated through that permanent establishment, the profits from such alienation shall be attributed to that permanent establishment. However, the profits derived from such alienation shall not be attributed to that permanent establishment if the company establishes that such alienation has been carried out for a purpose other than that of obtaining a benefit from the provisions of this Convention.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on or has carried 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 business 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 In the determination of the business profits of a permanent establishment of an enterprise, 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. 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 or any other office of the enterprise as royalties, fees or other similar payments in return for the use of patents or other rights, or by way of a commission, for specific services performed or for management, or, except in the case of a bank, as interest on moneys lent to the permanent establishment.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 No business profits shall be attributed to a permanent establishment of an enterprise by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 5
5 For the purposes of the preceding paragraphs, the business 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 6
6 Where business 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 Notwithstanding the provisions of paragraph 1 and 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 The provisions of paragraphs 1 and 2 shall also apply to profits referred to in those paragraphs derived by an enterprise of a Contracting State from its participation in a pool, a joint business or an international operating agency.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 In this Article, a) the term profits includes: (i) profits, net profits, 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 provided that such interest is incidental to the operation; 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 but does not include the transportation by an enterprise by any other means of transport or the provision of accommodation.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) the term profits includes: (i) profits, net profits, 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 provided that such interest is incidental to the operation;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (i)
(i) profits, net profits, gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic, and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (ii)
(ii) interest on sums generated directly from the operation of ships or aircraft in international traffic provided that such interest is incidental to the operation;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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,
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (i)
(i) the charter or rental of ships or aircraft,
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (ii)
(ii) the rental of containers and related equipment, and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (iii)
(iii) the alienation of ships, aircraft, containers and related equipment,
Canada–Mexico Tax Convention Act, 2006 — C-6.85
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 but does not include the transportation by an enterprise by any other means of transport or the provision of accommodation.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 or profits 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 or profits of that enterprise and taxed accordingly.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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,
Canada–Mexico Tax Convention Act, 2006 — C-6.85
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 or profits 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 or profits of that enterprise and taxed accordingly.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 2
2 Where a Contracting State includes in the income or profits of an enterprise of that State — and taxes accordingly — income or profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the amount so included is income or profits which would have accrued to the first-mentioned enterprise if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall, where it agrees with the inclusion, make an appropriate adjustment to the amount of tax charged therein on that income or those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 A Contracting State shall not change the income or profits 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 or profits which would be subject to such change would, but for the conditions referred to in paragraph 1, have accrued to that enterprise.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 4
4 The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends; and b) 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) 15 per cent of the gross amount of the dividends, in all other cases.
Canada–Mexico Tax Convention Act, 2006 — C-6.85
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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 6
6 Nothing in this Convention shall be construed as preventing a Contracting State from imposing on the earnings of a company attributable to a permanent establishment in that State, a tax in addition to the tax which would be chargeable on the earnings of a company which is a national of that State, except that any 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 the profits or income attributable to a permanent establishment or immovable property in a Contracting State and gains that may be taxed in that State in accordance with the provisions of Article 13 after deducting therefrom all taxes, other than the additional tax referred to herein, imposed in that State on such profits, income or gains.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 7
7 The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 3
3 Notwithstanding the provisions of paragraph 2: a) interest arising in a Contracting State may be taxed only in the other Contracting State where the beneficial owner is a resident of that other State and the person paying the interest or the recipient thereof is a Contracting State or its central bank, or a political subdivision or local authority thereof; b) interest arising in Mexico and paid to a resident of Canada who is the beneficial owner thereof shall be taxable only in Canada if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Export Development Canada, or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States; c) interest arising in Canada and paid to a resident of Mexico who is the beneficial owner thereof shall be taxable only in Mexico if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Banco Nacional de Comercio Exterior, S.N.C. or Nacional Financiera, S.N.C., or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States; d) interest arising in a Contracting State and paid to a resident of the other Contracting State which was constituted and is operated exclusively to administer or provide benefits under one or more pension, retirement or other employee benefits plans shall not be taxable in the first-mentioned State provided that: (i) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State; (ii) the interest is not derived from carrying on a trade or a business; and (iii) the interest is not derived from a related person.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 a)
a) interest arising in a Contracting State may be taxed only in the other Contracting State where the beneficial owner is a resident of that other State and the person paying the interest or the recipient thereof is a Contracting State or its central bank, or a political subdivision or local authority thereof;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 b)
b) interest arising in Mexico and paid to a resident of Canada who is the beneficial owner thereof shall be taxable only in Canada if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Export Development Canada, or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 c)
c) interest arising in Canada and paid to a resident of Mexico who is the beneficial owner thereof shall be taxable only in Mexico if it is paid in respect of a loan having a term of not less than three years made, guaranteed or insured, or a credit for such period extended, guaranteed or insured, by Banco Nacional de Comercio Exterior, S.N.C. or Nacional Financiera, S.N.C., or by any other institution as may be agreed to from time to time between the competent authorities of the Contracting States;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 d)
d) interest arising in a Contracting State and paid to a resident of the other Contracting State which was constituted and is operated exclusively to administer or provide benefits under one or more pension, retirement or other employee benefits plans shall not be taxable in the first-mentioned State provided that: (i) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State; (ii) the interest is not derived from carrying on a trade or a business; and (iii) the interest is not derived from a related person.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (i)
(i) the resident is the beneficial owner of the interest and is generally exempt from tax in the other State;
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (ii)
(ii) the interest is not derived from carrying on a trade or a business; and
Canada–Mexico Tax Convention Act, 2006 — C-6.85 (iii)
(iii) the interest is not derived from a related person.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 8 or Article 10.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 5
5 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 and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
Canada–Mexico Tax Convention Act, 2006 — C-6.85 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 that person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.