GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada–Israel Tax Convention Act, 2016 — C-6.42 5
5 Notwithstanding any other provision of this Convention, distributions made by a real estate investment fund which is a resident of Israel to a resident of Canada may be taxed in Canada. However, such distributions may also be taxed in Israel and according to the laws of Israel, but if the beneficial owner of these distributions is a resident of Canada and holds directly less than 10 per cent of the capital of that real estate investment fund, the tax so charged shall not exceed 15 per cent of the gross amount of the distributions.
Canada–Israel Tax Convention Act, 2016 — C-6.42
This paragraph shall not affect the taxation of the real estate investment fund in respect of the profits out of which the distributions are made.
Canada–Israel Tax Convention Act, 2016 — C-6.42 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.
Canada–Israel Tax Convention Act, 2016 — C-6.42 7
7 The provisions of paragraphs 1, 2, 3, 4 and 5 shall not apply if the beneficial owner of the dividends or of the distributions by a real estate investment fund, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends or making the distributions is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends or distributions are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 (Business Profits) shall apply.
Canada–Israel Tax Convention Act, 2016 — C-6.42 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 (or the distributions made by a real estate investment fund), except insofar as such dividends are paid (or distributions are made) to a resident of that other State or insofar as the holding in respect of which the dividends are paid (or distributions are made) is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid (or the distributions made) or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 9
9 Nothing in this Convention shall prevent a Contracting State from imposing its branch tax. However, the rate of the branch tax applying to a company that is a resident of the other Contracting State shall not exceed 5 per cent.
Canada–Israel Tax Convention Act, 2016 — C-6.42 10
10 A resident of a Contracting State shall not be entitled to any benefits provided under this Article in respect of a dividend if one of the main purposes of any person concerned with an assignment or a transfer of the dividend, or with the creation, assignment, acquisition or transfer of the shares or other rights in respect of which the dividend is paid, or with the establishment, acquisition or maintenance of the person that is the beneficial owner of the dividend, is for that resident to obtain the benefits of this Article.
Canada–Israel Tax Convention Act, 2016 — C-6.42 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–Israel Tax Convention Act, 2016 — C-6.42 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–Israel Tax Convention Act, 2016 — C-6.42 3
3 Notwithstanding the provisions of paragraph 2: (a) interest arising in a Contracting State and beneficially owned by the Government of the other Contracting State, or any political subdivision or local authority thereof, or by the Central Bank of that other State, shall be exempt from tax in the first-mentioned State; (b) interest arising in a Contracting State and paid in respect of indebtedness of the Government of that State, or any political subdivision or local authority thereof, or the Central Bank of that State shall be taxable only in the other State if the interest is beneficially owned by a resident of that other State; (c) interest arising in Israel 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 by Export Development Canada and the beneficial owner of the interest is dealing at arm’s length with the payer; (d) interest arising in Canada and paid to a resident of Israel shall be taxable only in Israel if it is paid in respect of a loan made, guaranteed or insured by ASHRA — The Israel Export Insurance Corporation Ltd. and the beneficial owner of the interest is dealing at arm’s length with the payer; (e) interest arising in a Contracting State and beneficially owned by an organization that was constituted and is operated in the other Contracting State exclusively to administer or provide benefits under one or more recognized pension plans shall be exempt from tax in the first-mentioned State if: (i) the organization is the beneficial owner of the interest and is either generally exempt from tax in the other State or its income is not subject to tax in the other State; (ii) each recognized pension plan provides benefits primarily to individuals who are resident of the other Contracting State; and (iii) the organization does not hold directly or indirectly more than 10 per cent of the capital or 10 per cent of the voting power of the company paying the interest; (f) the tax charged by a Contracting State on interest arising in that State and paid to a resident of the other Contracting State shall not exceed 5 per cent of the gross amount of the interest if the beneficial owner of the interest is a financial institution and is dealing at arm’s length with the payer. For the purposes of this subparagraph, the term “ financial institution ” means a bank or other enterprise substantially deriving its profits by raising debt finance in the financial markets or by taking deposits at interest and using those funds in carrying on a business of providing finance.
Canada–Israel Tax Convention Act, 2016 — C-6.42 (a)
(a) interest arising in a Contracting State and beneficially owned by the Government of the other Contracting State, or any political subdivision or local authority thereof, or by the Central Bank of that other State, shall be exempt from tax in the first-mentioned State;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (b)
(b) interest arising in a Contracting State and paid in respect of indebtedness of the Government of that State, or any political subdivision or local authority thereof, or the Central Bank of that State shall be taxable only in the other State if the interest is beneficially owned by a resident of that other State;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (c)
(c) interest arising in Israel 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 by Export Development Canada and the beneficial owner of the interest is dealing at arm’s length with the payer;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (d)
(d) interest arising in Canada and paid to a resident of Israel shall be taxable only in Israel if it is paid in respect of a loan made, guaranteed or insured by ASHRA — The Israel Export Insurance Corporation Ltd. and the beneficial owner of the interest is dealing at arm’s length with the payer;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (e)
(e) interest arising in a Contracting State and beneficially owned by an organization that was constituted and is operated in the other Contracting State exclusively to administer or provide benefits under one or more recognized pension plans shall be exempt from tax in the first-mentioned State if: (i) the organization is the beneficial owner of the interest and is either generally exempt from tax in the other State or its income is not subject to tax in the other State; (ii) each recognized pension plan provides benefits primarily to individuals who are resident of the other Contracting State; and (iii) the organization does not hold directly or indirectly more than 10 per cent of the capital or 10 per cent of the voting power of the company paying the interest;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (i)
(i) the organization is the beneficial owner of the interest and is either generally exempt from tax in the other State or its income is not subject to tax in the other State;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (ii)
(ii) each recognized pension plan provides benefits primarily to individuals who are resident of the other Contracting State; and
Canada–Israel Tax Convention Act, 2016 — C-6.42 (iii)
(iii) the organization does not hold directly or indirectly more than 10 per cent of the capital or 10 per cent of the voting power of the company paying the interest;
Canada–Israel Tax Convention Act, 2016 — C-6.42 (f)
(f) the tax charged by a Contracting State on interest arising in that State and paid to a resident of the other Contracting State shall not exceed 5 per cent of the gross amount of the interest if the beneficial owner of the interest is a financial institution and is dealing at arm’s length with the payer. For the purposes of this subparagraph, the term “ financial institution ” means a bank or other enterprise substantially deriving its profits by raising debt finance in the financial markets or by taking deposits at interest and using those funds in carrying on a business of providing finance.
Canada–Israel Tax Convention Act, 2016 — C-6.42 4
4 For the purposes of paragraph 3, a person shall be deemed not to be dealing at arm’s length with another person if, based on all relevant facts and circumstances, one controls directly or indirectly the other, or both are under the direct or indirect control of the same person or persons or, in the case of individuals, if one person is connected to the other by blood relationship, marriage or common-law partnership or adoption.
Canada–Israel Tax Convention Act, 2016 — C-6.42 5
5 Subparagraph 3(f) shall not apply to interest, all or any portion of which is contingent or dependent on the use of or production from property or is computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a company.
Canada–Israel Tax Convention Act, 2016 — C-6.42 6
6 The term “ interest ” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income which is subjected to the same taxation treatment as income from money lent by the laws of the State in which the income arises. However, the term “ interest ” does not include income dealt with in Article 10 (Dividends and Distributions by a Real Estate Investment Fund).
Canada–Israel Tax Convention Act, 2016 — C-6.42 7
7 The provisions of paragraphs 1, 2 and 3 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 (Business Profits) shall apply.
Canada–Israel Tax Convention Act, 2016 — C-6.42 8
8 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 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.
Canada–Israel Tax Convention Act, 2016 — C-6.42 9
9 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 exceeds for whatever reason the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 10
10 A resident of a Contracting State shall not be entitled to any benefits provided under this Article in respect of interest if one of the main purposes of any person concerned with an assignment or a transfer of the interest, or with the creation, assignment, acquisition or transfer of the debt-claim or other rights in respect of which the interest is paid, or with the establishment, acquisition or maintenance of the person that is the beneficial owner of the interest, is for that resident to obtain the benefits of this Article.
Canada–Israel Tax Convention Act, 2016 — C-6.42 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.
Canada–Israel Tax Convention Act, 2016 — C-6.42 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.
Canada–Israel Tax Convention Act, 2016 — C-6.42 3
3 Notwithstanding the provisions of paragraph 2: (a) copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or other artistic work (but excluding royalties in respect of motion picture films and royalties in respect of works on film, videotape or other means of reproduction for use in connection with television broadcasting); and (b) royalties for the use of, or the right to use, computer software or any patent or for information concerning industrial, commercial or scientific experience (but not including any such royalty provided in connection with a rental or franchise agreement); arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner of the royalties shall be taxable only in that other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 (a)
(a) copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or other artistic work (but excluding royalties in respect of motion picture films and royalties in respect of works on film, videotape or other means of reproduction for use in connection with television broadcasting); and
Canada–Israel Tax Convention Act, 2016 — C-6.42 (b)
(b) royalties for the use of, or the right to use, computer software or any patent or for information concerning industrial, commercial or scientific experience (but not including any such royalty provided in connection with a rental or franchise agreement);
Canada–Israel Tax Convention Act, 2016 — C-6.42
arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner of the royalties shall be taxable only in that other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 4
4 The term “ royalties ” as used in this Article means payments of any kind received as a consideration for: (a) the use of, or the right to use, any copyright, patent, trade mark, design or model, plan, secret formula or process, or computer software; or (b) information concerning industrial, commercial or scientific experience; or (c) the use of, or the right to use: (i) motion picture films; or (ii) films or videotapes or other means of reproduction for use in connection with television; or (d) the use of, or the right to use, industrial, commercial or scientific equipment. However, for the purposes of subparagraph d), the term “ royalties ” does not include income dealt with in Article 8 (Shipping and Air Transport).
Canada–Israel Tax Convention Act, 2016 — C-6.42 (a)
(a) the use of, or the right to use, any copyright, patent, trade mark, design or model, plan, secret formula or process, or computer software; or
Canada–Israel Tax Convention Act, 2016 — C-6.42 (b)
(b) information concerning industrial, commercial or scientific experience; or
Canada–Israel Tax Convention Act, 2016 — C-6.42 (c)
(c) the use of, or the right to use: (i) motion picture films; or (ii) films or videotapes or other means of reproduction for use in connection with television; or
Canada–Israel Tax Convention Act, 2016 — C-6.42 (ii)
(ii) films or videotapes or other means of reproduction for use in connection with television; or
Canada–Israel Tax Convention Act, 2016 — C-6.42 (d)
(d) the use of, or the right to use, industrial, commercial or scientific equipment.
Canada–Israel Tax Convention Act, 2016 — C-6.42
However, for the purposes of subparagraph d), the term “ royalties ” does not include income dealt with in Article 8 (Shipping and Air Transport).
Canada–Israel Tax Convention Act, 2016 — C-6.42 5
5 The provisions of paragraphs 1, 2 and 3 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, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 (Business Profits) shall apply.
Canada–Israel Tax Convention Act, 2016 — C-6.42 6
6 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 in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated.
Canada–Israel Tax Convention Act, 2016 — C-6.42 7
7 Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are 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.
Canada–Israel Tax Convention Act, 2016 — C-6.42 8
8 A resident of a Contracting State shall not be entitled to any benefits provided under this Article in respect of a royalty if one of the main purposes of any person concerned with an assignment or a transfer of the royalty, or with the creation, assignment, acquisition or transfer of rights in respect of which the royalty is paid, or with the establishment, acquisition or maintenance of the person that is the beneficial owner of the royalty, is for that resident to obtain the benefits of this Article.
Canada–Israel Tax Convention Act, 2016 — C-6.42 1
1 Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 2
2 Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 3
3 Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 4
4 Gains derived by a resident of a Contracting State from the alienation of: (a) shares, deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other State (at the time of the alienation or at any time during the twelve preceding months); or (b) an interest in a partnership, trust or other entity, deriving more than 50 per cent of its value directly or indirectly from immovable property situated in that other State (at the time of the alienation or at any time during the twelve preceding months); may be taxed in that other State.
Canada–Israel Tax Convention Act, 2016 — C-6.42 (a)
(a) shares, deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other State (at the time of the alienation or at any time during the twelve preceding months); or
Canada–Israel Tax Convention Act, 2016 — C-6.42 (b)
(b) an interest in a partnership, trust or other entity, deriving more than 50 per cent of its value directly or indirectly from immovable property situated in that other State (at the time of the alienation or at any time during the twelve preceding months);
Canada–Israel Tax Convention Act, 2016 — C-6.42 5
5 Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
Canada–Israel Tax Convention Act, 2016 — C-6.42 6
6 Notwithstanding paragraph 5, where an individual: (a) ceases to be a resident of a Contracting State and by reason thereof is treated for the purposes of taxation in that State as having alienated a property and is taxed in that State accordingly; and (b) at any time thereafter becomes a resident of the other Contracting State; the other Contracting State may tax gains in respect of the property only to the extent that such gains had not accrued while the individual was a resident of the first-mentioned State. However, this provision shall not apply to property, any gain from which the other Contracting State could have taxed in accordance with the provisions of paragraphs 1 to 4 of this Article if the individual had realized the gain before becoming a resident of that other Contracting State. The competent authorities shall endeavour to resolve by mutual agreement any issue which may arise from the application of this paragraph and of the domestic laws of the Contracting States in situations where a person ceases to be a resident of a Contracting State and by reason thereof is treated for the purposes of taxation in that State as having alienated a property and is taxed in that State accordingly.
Canada–Israel Tax Convention Act, 2016 — C-6.42 (a)
(a) ceases to be a resident of a Contracting State and by reason thereof is treated for the purposes of taxation in that State as having alienated a property and is taxed in that State accordingly; and