Non-Resident Investment in Canadian Real Estate. Jack Bernstein and Barbara Worndl

Size: px
Start display at page:

Download "Non-Resident Investment in Canadian Real Estate. Jack Bernstein and Barbara Worndl"

Transcription

1 Non-Resident Investment in Canadian Real Estate Jack Bernstein and Barbara Worndl

2 Nonresident Investment in Canadian Real Estate by Jack Bernstein and Barbara Worndl Jack Bernstein and Barbara Worndl are with Aird & Berlis LLP in Toronto. Over the last 10 years, there has been substantial investment activity by nonresidents of Canada in Canadian rental properties and development projects. This article summarizes the major Canadian factors to be considered in selecting the appropriate vehicle to hold the property. The objectives are to minimize Canadian taxes on profits and Canadian withholding taxes, maximize foreign tax credits in the jurisdiction of the investor, and provide limited liability. This article highlights investments by U.S. investors. Investment by a Canadian Corporation A nonresident of Canada may incorporate a Canadian corporation to acquire Canadian real property. A U.S. purchaser might consider using an unlimited liability company (ULC) for that purpose. Nova Scotia, Alberta, and British Columbia have legislation that permits the formation of ULCs. A ULC is treated for Canadian tax purposes in the same manner as a limited liability corporation. For U.S. tax purposes, a ULC is ignored if there is a single shareholder and is treated as a partnership if there is more than one shareholder. For an Alberta ULC or a British Columbia ULC a check-the-box election may be required in the U.S. The use of a ULC may be desirable if the Canadian corporation does not become taxable on the income as a result of the deductible expenses (for example, interest or capital cost allowance). The deductions will also be available in the U.S. to the extent permitted by the Internal Revenue Code. The fifth protocol to the Canada- U.S. income tax treaty (hereafter U.S. treaty ) denies treaty benefits on dividends, interest, and management fees if because of the hybrid nature of the ULC, the treatment of the amount under the taxation law of the U.S. is different than the U.S. tax treatment would have been had the amount been earned directly by the shareholder. There are techniques that may be available to avoid the denial of U.S. treaty benefits in these circumstances, but that discussion is beyond the scope of this article. Investors must use care in capitalizing the Canadian corporation. Although interest expense incurred for the purpose of acquiring a rental property generally is deductible for Canadian tax purposes, Canada has thin capitalization rules that operate to disallow an interest deduction to the extent that the corporation is thinly capitalized. Subsection 18(4) of the Income Tax Act (Canada) sets out Canada s thin capitalization rules and restricts the deduction for interest paid or payable in a tax year by a corporation resident in Canada on debts owed to a specified nonresident. If the ratio of those debts to the corporation s equity exceeds 2 to 1, the excess interest is not deductible. The rules are complicated and require the corporation to calculate average monthly amounts. Equity includes the retained earnings at the beginning of the year, the average of contributed surplus at the beginning of a calendar month, and the average of paid-up capital at the beginning of a calendar month. A specified nonresident is a nonresident person or a nonresident-owned investment corporation that is a shareholder of the corporation that alone, or together with non-arm s-length parties, owns shares with a minimum of 25 percent of the votes or 25 percent of the fair market value of all the issued and outstanding shares of the corporation. The rule is sufficiently broad so as to encompass back-toback loans. TAX NOTES INTERNATIONAL NOVEMBER 15,

3 FEATURED PERSPECTIVES For a development project, interest is not deductible on an annual basis if it relates to vacant land or is incurred during the period of construction (subsections 18(2) and 18(3.1) of the ITA). Accordingly, the thin capitalization rules do not apply during the period of construction. Section 21 of the ITA allows a taxpayer to effectively capitalize all or part of the interest expense during the period of construction by adding it to the cost of depreciable property. However, the maximum amount on which the election can be made is restricted to the amount of interest that would otherwise be deductible under the thin capitalization rules. While interest is generally deductible, participating interest (for example, interest referable to profits or cash flow) may not be deductible, for example if it exceeds a reasonable rate of interest (Sherway Centre Limited, 98 D.T.C (FCA)) or if it does not meet the legal definition of interest. Canada has eliminated withholding tax on interest payments to nonresidents unless the amount is paid to a non-arm s-length person or is participating debt interest. Such interest payments are subject to Canadian withholding tax at the 25 percent rate, unless modified by a treaty. A Canadian corporation that is controlled by a nonresident would be subject to the top Canadian corporate tax rate. Most of Canada s treaties reduce the withholding tax rate on interest to 10 percent. Under the U.S. treaty the rate of withholding is nil unless, in the case of interest paid by a resident of Canada, the interest is determined with reference to sales, income, profit, or other cash flow of the debtor or a related person or to any dividend, partnership distribution, or similar payment made by the debtor to a related person. Any such amount is treated as a dividend. Article XXI of the U.S. treaty provides an exemption from withholding tax for interest or dividends paid to a U.S. pension fund that is not related to the Canadian payer corporation. In other words, that exemption is not available if the nonresident pension fund is a controlling shareholder of the Canadian corporation. The exemption from withholding tax on interest and dividends for a foreign pension fund under Article XXI(2) of the U.S. treaty does not extend to rental income, capital gains from real property, or recaptured depreciation. A Canadian corporation that is controlled by a nonresident would not be a Canadian-controlled private corporation. As a result, such corporation would not be entitled to benefit from the small business deduction, which results in a low tax rate approximately 15.5 percent in Ontario on the first C $500,000 of active business income. It also would not be entitled to receive a dividend refund on the payment of dividends out of investment income. As a result, such corporation would be subject to the top Canadian corporate tax rate. A Canadian corporation subject to tax in Ontario would pay a combined federal and provincial corporate tax rate of 30 percent on ordinary income; the rate is scheduled to decline to 25 percent by Capital gains are effectively taxed at half this rate, or currently 15 percent. Also, there is Canadian withholding tax on dividends paid to a nonresident shareholder, unless the exemption for an exempt organization in Article XXI of the U.S. treaty applies. The withholding tax rate is 25 percent unless reduced by a treaty. Under many of Canada s treaties, including the U.S. treaty, the withholding tax rate on dividends is reduced to 5 percent if the dividends are paid directly to a corporate shareholder owning at least 10 percent of the voting stock of the company paying dividends (whether directly or through a partnership). Otherwise, the rate of Canadian withholding tax is 15 percent of the amount of the dividend. If the U.S. shareholder is an LLC, Article IV(6) of the U.S. treaty permits a look-through of the LLC to U.S. resident members to determine their entitlement to the benefit of the U.S. treaty. As a result, to the extent the members of the LLC are U.S. resident individuals, the withholding tax rate is 15 percent, and 5 percent to a corporation owning indirectly through the LLC a minimum of 10 percent of the voting shares of the Canadian corporation. If any member of the LLC is not a U.S. resident person, the Canadian withholding tax on that member s share of the dividend is 25 percent. If the Canadian corporation is a principal business corporation (that is, a corporation whose principal business (more than 50 percent) is real estate), it may claim capital cost allowance (depreciation) in excess of the net rental income to produce a loss. Other taxpayers are prohibited from creating a loss by claiming capital cost allowance on a building. To the extent that the Canadian corporation has a loss, the loss may be carried back three years or forward for up to 20 years. The loss may be used to shelter income of the corporation, including any capital gain on a sale. The ability to carry forward losses is one advantage of a corporation as compared with a nonresident trust, which may not carry forward a noncapital loss to offset a gain on a sale. On a disposition of property by the Canadian corporation, one-half of any capital gain and the full amount of recaptured depreciation is taxable. As noted above, noncapital losses may be available to be carried 504 NOVEMBER 15, 2010 TAX NOTES INTERNATIONAL

4 forward to provide some relief. Ordinarily, one-half of a capital gain is eligible to be paid out as a tax-free capital dividend to a Canadian shareholder. However, the entire amount of the dividend is subject to Canadian withholding tax when paid to a nonresident shareholder. Assuming that the corporation pays tax at 30 percent on one-half of the capital gain (or 15 percent on the full gain), and on the entire amount of the recaptured depreciation, the after-tax amount would be subject to Canadian withholding tax at the 25 percent rate (unless modified by treaty) on a dividend distribution. Canadian treaties, including the U.S. treaty, may reduce the withholding tax rate on the dividends to 5 percent or 15 percent. As noted above, a nonresident pension fund may be exempt from withholding tax under the provisions of the U.S. treaty, provided it is not a related party. The aggregate corporate and withholding tax on a capital gain realized in a corporation controlled by a nonresident and fully distributed would be approximately percent (if a 5 percent withholding tax rate applied to the dividend), percent (if a 15 percent withholding tax rate applied to the dividend), and percent (if a 25 percent withholding tax rate applied to the dividend). The aggregate corporate and withholding tax on recaptured depreciation or inventory gain realized in a corporation and distributed as a dividend would be approximately 33.5 percent (if a 5 percent withholding tax rate applied to the dividend), 40.5 percent (if a 15 percent withholding tax applied to the dividend), and 47.5 percent (if a 25 percent withholding tax rate applied to the dividend). A nonresident of Canada who proposes to dispose or disposes of taxable Canadian property including real property situated in Canada (other than excluded property) must apply under section 116 of the ITA for a certificate of compliance from the Canada Revenue Agency at any time before the disposition or within 10 days after the disposition. The certificate confirms that the vendor has paid the tax relating to the disposition or has provided adequate security for the tax liability. If the certificate is obtained, copies are provided to the vendor and to the purchaser. The certificate relieves the purchaser from having to withhold and remit a portion of the purchase price to the CRA. Failure to obtain a certificate can subject the purchaser, who has failed to withhold and remit a specified amount to CRA, to a penalty of 25 percent of the gross purchase price (that is, not the gain to the vendor) and in the case of inventory or depreciable property 50 percent of the gross purchase price. Form T2062 must be completed for capital property. Form T2062A is required for dispositions of Canadian resource property, Canadian real property (other than capital property), Canadian timber resource property, and depreciable taxable Canadian property. A standard purchase and sale agreement for taxable Canadian property will require that the vendor provide a representation and warranty that the vendor is not a FEATURED PERSPECTIVES nonresident of Canada. This clause will relieve the purchaser of any liability should there be a misrepresentation by the nonresident. If the representation cannot be made and the property is taxable Canadian property (other than excluded property), the purchaser will include a provision requiring the delivery of the certificate by closing (which is generally not possible given the amount of time it takes the CRA to issue a certificate), or the vendor will withhold the requisite portion of the purchase price pending the delivery of the certificate. The certificate is required whether or not there is a gain realized by the vendor on the disposition of the property. The nonresident vendor is also required to file a Canadian tax return for the year in which the disposition occurred and to report any income, capital gain, or income or capital loss. The amount of tax paid to obtain the certificate, if any, will be applied against any tax assessed for this year. Expenses relating to the sale may be claimed only on the tax return and not on the application for the certificate. Taxable Canadian property includes a share of a corporation if at any time in the 60-month period preceding the date of disposition more than 50 percent of the fair market value of the share was derived, directly or indirectly, from one or more of: real property situated in Canada; Canadian resource property; timber resource property; or an option regarding, an interest in, or, for civil law purposes, a right in any of the foregoing. If the shares of the corporation are listed on a designated stock exchange, there is an additional requirement namely, that at any time in the 60-month period before the date of disposition the vendor, alone or together with non-arm s-length persons, owned 25 percent or more of the shares of any class of the corporation. If a nonresident together with non-arm s-length persons owns less than 25 percent of the shares of any class of a public company during the 60-month period before disposition, the nonresident will not be taxable in Canada on the disposition of the shares. If the 25 percent threshold is met, the nonresident may be taxable in Canada absent a treaty exemption but no certificate is required as the shares are excluded property. Under most of Canada s treaties, Article XIII or 13 of the relevant treaty will provide that gains from the alienation of any property, other than real property or personal property forming part of a permanent establishment or a share of a capital stock of a company (the value of which shares is derived principally from real property situated in Canada), will be taxable only in the contracting state of which the alienator is a resident. Some of Canada s treaties apply to exempt from Canadian tax dispositions of shares in publicly traded companies the value of which is derived principally TAX NOTES INTERNATIONAL NOVEMBER 15,

5 FEATURED PERSPECTIVES from immovable property. 1 As noted above, there is no requirement to obtain a certificate regarding dispositions of a taxable Canadian property that is excluded property. Excluded property includes a share that is listed on a recognized stock exchange. A recognized stock exchange includes a designated stock exchange and any stock exchange in an OECD country with which Canada has a tax treaty. As a result, even though a gain on the disposition of shares of a public corporation, the shares of which derive more than half their value from Canadian real property, is taxable in Canada when at any time in the 60 months before the date of disposition the vendor, alone or together with non-arm s-length persons, owns more than 25 percent of the shares of a class, there is no requirement to obtain a certificate in these circumstances; therefore, the purchaser of the shares can have no liability if the vendor fails to pay its Canadian taxes in connection with the disposition. Some treaties exempt nonresident shareholders who own less than a certain percentage (often 10 percent and sometimes 25 percent) of the shares of a Canadian private corporation that derives its value from Canadian real property from Canadian tax on any gain realized in the sale of such shares. 2 Other treaties provide relief from Canadian taxation on gains arising from the disposition of movable property such as shares (other than movable property forming part of the business property of a PE) whether or not the value of the shares is derived principally from immovable property in Canada. 3 If no treaty exemption is available and the shares are not excluded property, the nonresident who applies for a certificate will be required to pay tax in Canada at the rate of 25 percent of any gain on the shares to be disposed of in order to obtain the certificate. However, the actual tax rate payable regarding any capital gain is lower. When the nonresident files a Canadian return for the year of disposition, the nonresident will be entitled to a refund of the excess tax paid to obtain the certificate or will be required to pay Canadian tax if the shares were excluded property. A nonresident corporation will be liable for tax on the capital gain on the disposition of the shares of the Canadian corporation at a rate of 14 percent (assuming no provincial tax). The additional tax paid to obtain the certificate should be refunded to the nonresident vendor when the Canadian return is assessed. 1 See, e.g., Austria, Belgium, Croatia, Estonia, Germany, Hungary, Iceland, Ireland, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxembourg, the Netherlands, Slovenia, South Africa, Sweden, Switzerland, Tanzania, Ukraine, the United Kingdom, Uzbekistan, and Venezuela. This is not a complete list. 2 See, e.g., Austria, Belgium, Denmark, Germany, Korea, Luxembourg, Mexico, Russia, Switzerland, and the United Kingdom. This is not a complete list. 3 See, e.g., Algeria and Bulgaria. This is not a complete list. Use of a Nonresident Corporation A nonresident corporation that carries on business in Canada is required to file a Canadian income tax return annually and pay tax under Part I on its net income. Whether a nonresident corporation that owns rental property in Canada carries on business in Canada is to be determined from all the facts and circumstances. In Interpretation Bulletin IT-434R, Rental of Real Property by an Individual, dated April 30, 1982, the CRA set out the criteria it will consider in determining whether a rental operation carried on by an individual is a source of business income or property income. When the renting of real property to others by an individual is incidental to or is part of the fabric of his business, the renting of real property will be regarded as a business operation and any rental income or loss will form part of the individual s business income or loss. If it is not incidental to an existing business, the renting of real property by an individual is not, in itself, indicative of a business operation. It will be regarded as a business operation only when the landlord supplies or makes available to tenants services to such an extent that the rental operation has gone beyond the mere rental of real property. The CRA will look at the number and kinds of services supplied. Generally, the CRA has not looked at the size or number of properties being rented by the landlord or the extent to which their management or supervision occupies the owner s time in determining whether the income is income from business or income from property. Instead, the test applied by the CRA is whether the landlord is providing services other than those normally provided by a landlord. 4 The CRA stated that when only basic services are provided such as building maintenance, heat, air conditioning, water, elevator service, and parking, the operation is likely not to be considered a business. However, if the landlord provides numerous services such as office security and cleaning, this may indicate the landlord is carrying on a business. Although the case law is not entirely consistent on this point, the weight of the authorities supports the CRA s view in this matter. In Walsh and Micay v. M.N.R., 65 D.T.C. 5293, a decision of the Exchequer Court of Canada, the court held that prima facie the receipt of rent by a landowner does not give rise to the conduct of a business. Justice Cattanach held that the income from renting real property is only to be regarded as income from business if the services provided by the landlord go beyond those to which tenants have come to expect and those which landlords normally provide. Justice Cattanach provided examples 4 See also CRA document E5 Rental partnership income earned by a non-resident, a technical interpretation dated April 28, 2004, in which the CRA applies the same services test in determining whether rental income of a non- Canadian partnership is income from a business or a property. 506 NOVEMBER 15, 2010 TAX NOTES INTERNATIONAL

6 of the type of services that could change the characterization of rental income from income from property to income from business such as the provision of breakfast, maid, linen, laundry, and other similar services. Similar reassessing was applied in DeVillard v. M.N.R., 78 D.T.C (T.R.B.), and Burri v. The Queen, 85 D.T.C (F.C.T.D.), in which, in each case, the court held that rental income was income from property as opposed to business income by determining that the services provided were of a limited nature and did not go beyond the services typically provided by a landlord. 5 There have been cases in which the courts have found that the level of activity of the landlord rather than the range of services provided is the most relevant factor. In Radke Bros. Construction Co. Ltd. v. M.N.R., 75 D.T.C. 149 (T.R.B.), the rental income was held to be income from a business because the landlord was so active. The landlord owned two apartment buildings with 227 units and parking for 170 cars. It had eight full-time employees engaged in managing and maintaining the buildings. Similarly, in Weintraub v. M.N.R., 75 D.T.C (F.C.T.D.), the court held rental income earned by a corporation that owned two commercial buildings was income from business. The court was influenced by the fact that the owner was a corporation that presumably was incorporated to conduct a business, and that the rental business was within its corporate objects. The weight of authority favors the provision of services test as the relevant test in determining whether rental income is income from business or income from property. If the nonresident corporation is carrying on a business, in addition to ordinary corporate tax, the corporation is subject to branch tax at a 25 percent rate, unless modified by a treaty. Branch tax is imposed to ensure that the nonresident does not avoid the tax that would otherwise have been withheld on dividends paid by a Canadian corporation. Under Article X(6) of the U.S. treaty, there is no branch tax on the first C $500,000 of income earned by associated companies. Any income in excess of that amount is subject to branch tax at the 5 percent rate. The reduced rates do not apply to a U.S. LLC. The CRA states that under the treaty one must look through the LLC to determine the applicable branch tax rate. Unless the member is a U.S. corporation, the rate of branch tax is 25 percent. A U.S. resident may wish to use a subchapter S corporation to benefit from one level of tax. A subchapter S corporation benefits from the U.S. treaty, 6 unlike an FEATURED PERSPECTIVES LLC. 7 The subchapter S corporation will pay tax in Canada at approximately 30 percent on its net income plus branch tax at the 5 percent rate, if applicable. A credit should be available on the U.S. shareholder s U.S. return for the Canadian tax paid. If the nonresident corporation earns income from property, payments of rent made by a resident of Canada to the nonresident are subject to Canadian withholding tax of 25 percent. However, a nonresident who is earning income from property is entitled to file an election for rental income under section 216 of the ITA. Rather than have the Canadian withholding tax at the 25 percent rate on the gross rental income, the election permits withholding on net rental income. The nonresident may deduct interest relating to the property, capital cost allowance (depreciation), property taxes, and property management and maintenance fees. In order to file the election, the nonresident must undertake to file a Canadian tax return and pay Part I tax on its net income. Interest paid between nonresidents is subject to Canadian withholding tax under paragraph 212(13)(f) of the ITA, if the debt is secured by a mortgage on Canadian real property, or under subsection 212(13.2), if the nonresident deducts the interest in computing taxable income earned in Canada. Taxable income earned in Canada does not include rental income, if the taxpayer makes a section 216 election. It would include business income, recaptured depreciation, and capital gains, other than capital gains regarding a treaty-protected property. Unless there is treaty protection, the shares of a nonresident corporation the value of which is derived primarily from Canadian real estate will be viewed as taxable Canadian property. Taxable Canadian property includes a share of a nonresident private corporation (a corporation the shares of which are not listed on a designated stock exchange) if within 60 months before the date of disposition more than 50 percent of the fair market value of the shares was derived, directly or indirectly, from one or any combination of real property situated in Canada, Canadian resource property, timber resource property, or an option regarding, an interest in, or for civil law purposes a right in, any of the foregoing. Many of Canada s treaties (for example, with Switzerland and Germany) exempt from Canadian tax gains arising on the disposition of shares of a foreign corporation which shares derive their value principally from Canadian real property. For example, under the provisions of Article XIII(3)(b)(ii) of the U.S. treaty, a U.S. resident will not 5 See also Orcheson v. The Queen, 2005 D.T.C (TCC); Venditti v. The Queen, [2009] 2 C.T.C (T.C.C.). 6 See Article IV(6), para. 2 of the technical explanation to the 2007 protocol to the U.S. treaty. 7 In TD Securities (USA) LLC v The Queen, 2010 D.T.C. 1137, a recent decision of the Tax Court of Canada, Justice Boyle held that an LLC with a single member who was a U.S. resident corporation for purposes of the U.S. treaty, was itself a U.S. resident for purposes of the U.S. treaty. The CRA did not appeal this decision. It is not clear what impact this decision will have. TAX NOTES INTERNATIONAL NOVEMBER 15,

7 FEATURED PERSPECTIVES be taxable in Canada on a sale of shares of a U.S. company that owns Canadian real property. Absent a treaty exemption, on the disposition of shares of the foreign corporation, the nonresident vendor must comply with the procedure in section 116 (requiring a certificate and prepayment of Canadian tax at the rate of 25 percent of a capital gain and 50 percent of an inventory gain or recaptured depreciation on a sale of taxable Canadian property), and the nonresident vendor would be taxable in Canada on the amount of the gain realized. Use of a Trust A Canadian or nonresident trust may be used to acquire Canadian rental property. A trust will be a personal trust if the beneficiaries do not pay for their interest. For example, a nonresident of Canada may make a gift of cash to a trust formed for the benefit of beneficiaries (for example, children) who are not residents in Canada. The trust may use the settled funds to acquire the property. If the beneficiaries purchase their interest in the trust, the trust will be viewed as a commercial trust. A non-canadian trust is not a unit trust for Canadian tax purposes. A trust often is viewed as an attractive vehicle as it is not subject to the thin capitalization rule or branch tax. The beneficiaries or other nonresidents may loan funds to the trust on an interest-bearing basis without regard to the 2-1 debt-to-equity ratio. A trust often is viewed as an attractive vehicle as it is not subject to the thin capitalization rule or branch tax. Generally, the residency of a trust is determined by reference to the residency of the majority of the trustees. 8 The residency of the beneficiaries is not material for that determination. 9 The CRA indicated in Interpretation Bulletin IT-447, Residence of a Trust or Estate, dated May 30, 1980, that a trust may be considered to reside where a person, other than a trustee, exercises a substantial portion of management 8 However, in Garron Family Trust v. The Queen, 2009 D.T.C. 1287, the Tax Court of Canada held that the residency of a trust is determined by applying the same test used for corporations, namely, a trust is resident where it is centrally managed and controlled. This case is under appeal. 9 See MNR v. Holden (1932), 1 D.T.C. 234 (S.C.C.); Thibodeau Family Trust v. The Queen, 78 D.T.C (F.C.T.D.). and control. The CRA also considers that the dual residency of a trust is possible, although that was rejected in Thibodeau. Based on proposed amendments to the ITA, effective January 2007, a nonresident trust may be deemed to be a Canadian resident when the trust has either a resident contributor (generally, a person resident in Canada who directly or indirectly makes a gift or loan or transfers property to a nonresident trust) or resident beneficiary (a Canadian resident beneficiary unless the trust qualified as an immigration trust). The trust income, including income of a commercial trust, is calculated as if the trust is an individual, subject to tax at the highest marginal rate. The trust will be taxable at a rate of 46.4 percent assuming it is taxable in Ontario. A deduction is available under subsection 104(6) in computing income under Part I of the ITA to the extent that income is paid or made payable to a beneficiary in the year. If a trust is not resident in Canada throughout the tax year, subsection 104(7) prohibits the deduction. If the trust is resident in Canada, and has any designated beneficiaries, Part XII.2 of the ITA provides for a 36 percent tax on designated income of the trust if any income of the trust is taxed in the hands of the beneficiaries. In other words, if the designated income of the trust is taxed in the trust (at the top marginal rate), Part XII.2 is inapplicable. The Part XII.2 tax is deductible in computing taxable income under Part I. No Part XII.2 tax is payable by a trust for a tax year in which the trustee has certified in the Part XII.2 tax return that there were no designated beneficiaries of the trust in that year. A designated beneficiary includes a beneficiary that is a nonresident of Canada. It may include a tax-exempt entity in some circumstances. The designated income of a trust includes income from a business carried on in Canada or from real property in Canada. It also includes taxable capital gains (net of allowable capital losses from the same sources) from dispositions of Canadian real property. If the trust is a Canadian trust, any income distributed in the year to nonresident beneficiaries is subject to Canadian withholding tax of 25 percent, subject to reduction under a treaty. The U.S. treaty reduces the rate of Canadian withholding tax on distributions of income by a Canadian resident trust to a U.S. beneficiary to 15 percent. However, there is no Canadian withholding tax on capital distributions made by the trust. A nonresident trust is not subject to the provisions of Part XII.2. If the trust earns income from property, it arguably is not subject to provincial tax, but also will not qualify for the federal abatement. The rate of tax in those circumstances would be percent based on current rates. A nonresident trust earning income from property would be subject to Canadian tax at the rate of 25 percent on the gross rental income under the Canadian withholding tax rules under Part XIII unless an election were made under section 216 to pay tax on net 508 NOVEMBER 15, 2010 TAX NOTES INTERNATIONAL

8 10 See, e.g., Article XXI(2) of the U.S. treaty. FEATURED PERSPECTIVES rental income. As discussed above, the net election is available under subsection 216(1) of the ITA to permit a nonresident trust to deduct interest, property taxes, maintenance costs, and capital cost allowance (depreciation) in computing the net rental income that is taxable in Canada. Interest may be deducted on unsecured loans made to nonresident trusts by the nonresident beneficiaries. Under subsection 107(2.1) of the ITA, a transfer of property from a commercial trust to a beneficiary is deemed to take place for proceeds equal to fair market value, and the beneficiaries are deemed to have disposed of their interest in the trust for an amount equal to the fair market value of the property distributed to that beneficiary. A personal trust is subject to a deemed disposition of its assets on the 21st anniversary of the trust. That applies whether the trust was resident in Canada or was a nonresident. The deemed disposition rule does not apply to a commercial trust. Subsection 212(13.2) of the ITA provides that when a nonresident person (including a trust) pays or credits an amount to another nonresident person, the first nonresident person will be deemed to be a person resident in Canada for withholding tax purposes for the portion of the amount that is deductible in computing the particular nonresident person s taxable income earned in Canada (as defined above). Paragraph 212(13)(f) provides that when a nonresident person pays an amount as interest on a mortgage secured by real property in Canada and the interest is deductible by the nonresident in calculating its taxable income earned in Canada, then the payer is deemed to be resident in Canada for withholding tax purposes regarding the payment. As a result, if the interest is nonparticipating and paid to an arm s-length person, there will be no withholding tax. It is beneficial to have the nonresident trust earn income from property and not carry on a business in Canada. For nonresident trusts earning income from property, it is possible to structure interest on loans from the beneficiaries to not be secured by Canadian property so that an interest deduction may be claimed on filing the net election under subsection 216(1) of the ITA. Subsection 212(13.2) will apply to require Canadian withholding tax on interest paid on a rental property in the year of sale. If the beneficiary of the nonresident trust is a pension fund, then there may be treaty relief on the withholding tax on the interest if the trust is not carrying on business, and the pension fund is not related to the trust. 10 Paragraph 20(1)(c) of the ITA contains the general rule for interest deductibility. For interest to be deductible it must be payable under a legal obligation to pay interest on borrowed money used for the purpose of earning income from a business or property or regarding an amount payable for property acquired to gain or produce income from property, or to gain or produce income from a business. For this purpose income does not include a capital gain. Section 67 of the ITA denies a deduction for an expense to the extent it is unreasonable. If a U.S. trust is used for the investment, U.S. beneficiaries of the trust may wish to consider whether it would be advantageous for U.S. tax purposes to take advantage of the check-the-box legislation so that the income may be taxable in their hands, rather than be taxable to the trust. When a taxpayer uses a trust, the potential exposure for the liabilities of the trust is another issue to be addressed. It is unresolved in Canada whether a beneficiary of a trust, when the units are not publicly traded, could be liable for the liabilities of the trust. A Delaware business trust benefits from limited liability. While it is often suggested that the beneficiaries of the trust may not be liable for obligations of the trust beyond the trust property, some commentators have suggested there is a theoretical risk. The risk may be partially overcome by obtaining appropriate liability insurance, as well as by including a stipulation in all contracts that recourse is to be had only to trust property. It may be possible to overcome this concern by having a non-canadian limited partnership be the beneficiary of the nonresident trust or by having the U.S. trust be a limited partner in a non-canadian limited partnership that owns the property. Use of a Partnership If a partnership with a nonresident member invests in Canadian real property, the tax consequences depend on whether the income from the real property is earned from carrying on business in Canada, or whether the income is income from property. It may depend also on whether any partner is a taxable corporation. From a Canadian tax perspective, the jurisdiction or formation of the partnership does not affect the taxation of the members. Whether the income is from property or from carrying on a business is factual, and generally is dependent on the number of services provided by the owner. If only the minimal services normally required by a tenant are provided by the landlord, the income would generally be income from property. There is some concern that the CRA would presume that a partnership is formed for the purpose of earning a profit and therefore could be viewed prima facie as carrying on business. The CRA s technical interpretations have indicated that it is a question of fact whether a partnership earns income from a business or income from property. If any of the partners in the partnership are corporations and the partnership earns income from a business, the corporate partners will be subject to Canadian TAX NOTES INTERNATIONAL NOVEMBER 15,

9 FEATURED PERSPECTIVES tax at corporate rates (currently 30 percent in Ontario) under Part I of the ITA and Canadian branch tax. If a partner in the partnership is an individual, then that individual will be viewed as earning Canadiansource business income subject to tax in Canada based on progressive rates up to a maximum of approximately 46.4 percent in Ontario. The individual partner must file a Canadian return each year and pay any Canadian taxes owing. Subsection 212(13.1) applies when a partnership pays interest that is deductible in computing its income from a Canadian source to a nonresident person. That provision applies whether the partnership earns income from property or from a business. The partnership is deemed to be a resident of Canada for purposes of the payment with the result that Canadian withholding tax applies on the interest payment to the nonresident person under paragraph 212(1)(b) of the ITA and subject to withholding tax as discussed above. A U.S. individual or taxable entity would be entitled to a foreign tax credit for the Canadian withholding tax. If the partnership is viewed as earning income from property rather than income from a business, the nonresident partner will be taxable under Part XIII (the Canadian withholding tax provisions) on the gross rental income. However, rather than have Canadian withholding tax on gross rental income, it is generally preferable for the partnership to elect under section 216 of the ITA for its income to be taxed on a net basis. That would result in the nonresident partners being subject to Canadian tax under Part I of the ITA on their net income from the Canadian property, and they will be required to file Canadian tax returns annually. Also, the withholding tax should be reduced or eliminated and the partnership may be required to withhold tax on interest paid by it to a partner under subsection 212(13.1) as discussed above. While a U.S. pension fund may be exempt from Canadian tax under Article XXI of the U.S. treaty on dividends or interest from an unrelated Canadian entity, there is no special treatment available for recapture or capital gains realized on the sale of a Canadian property. The CRA has confirmed that they will look through a partnership and allow the treaty exemption for the proportion of the partnership income allocable to a tax-exempt partner. One difference between earning income from a business and earning income from property is that rental losses are not available to be carried forward against capital gains and recaptured depreciation if a net election is made under section 216 of the ITA. However, if the partnership is viewed as carrying on business in Canada, the partners are entitled to carry forward losses. As a result, if the objective is to earn property income, care should be exercised in structuring the debt financing so as not to trigger an annual rental loss. If the partnership is earning property income but not filing the net election in Canada, any payment by a Canadian resident to the partnership is deemed to be a payment to a nonresident for withholding tax purposes. Part XIII withholding tax should not apply if the partnership is paying tax under Part I as business income, provided the appropriate waiver is obtained from the CRA under regulations 805 and The thin capitalization rule relating to the financing of a Canadian corporation does not apply to the financing of a partnership. There may be an issue whether the interest payments to the nonresident partners by the partnership are a payment of interest, rather than a distribution of partnership income. That is relevant, because the former are deductible to the partnership, while the latter are not. The amount of interest charged should be reasonable. A limited partner, resident in Canada, would realize a capital gain if the property is refinanced and surplus funds are to be distributed to the partners. A distribution from a partnership to a partner results in a reduction of the partner s adjusted cost base in his partnership interest equal to the amount of the distribution. When at the end of a tax year a partner s adjusted cost base in his partnership interest is a negative amount, the partner is deemed to realize a capital gain from the disposition of the partnership interest equal to the negative amount, and his adjusted cost base is reset to zero. If at any time in the 60-month period before the date of disposition more than 50 percent of the fair market value of the interest in the partnership is derived, directly or indirectly, from one or any combination of real property situated in Canada, Canadian resource property, timber resource property, or options regarding, interests in, or, for civil law purposes, rights in, any of the foregoing, the interest in the partnership is taxable Canadian property. As a result, if the nonresident partner s adjusted cost base in a partnership, the interest in which is taxable Canadian property, is a negative amount at the end of a tax year, the nonresident partner will be deemed to have realized a capital gain from the disposition of the interest in the partnership. The nonresident partner must obtain a certificate, pay any Canadian tax on the gain, and file a return for the year reporting the deemed disposition. If a partnership with any nonresident members disposes of taxable Canadian property, one application for a certificate in Form T2062 may be filed on behalf of all partners. It must include a complete listing of the nonresident partners, their addresses, taxpayer identification numbers, interest (percentage in the partnership), adjusted cost base, and proceeds of disposition and payment of the tax or security for the payment of tax. If a TIN is required, an original or certified copy of a valid passport, valid driver s license, or birth certificate must be provided. Technically, the application is being made for each partner as each member of the partnership is considered to have disposed of his share of the property. This means that each partner must file a Canadian tax return in the year of disposition reporting his share of the gain or loss from the disposition. This 510 NOVEMBER 15, 2010 TAX NOTES INTERNATIONAL

10 FEATURED PERSPECTIVES has created a practical compliance problem for large partnerships that have other arm s-length partnerships as partners. Information may not be available on every partner in a fund. The requirement to obtain a certificate on behalf of each partner and the requirement for Tax on: Canadian Corporation Nonresident Corporation Rent a 30 percent b 25 percent gross unless net election (28 percent) each partner to file a Canadian return militates against the use of a partnership as a practical structure to own Canadian real property, particularly when there are many partners. Canadian Trust Nonresident Trust Partnership Individual 39 percent/46.4 percent net rental c Capital Gains 15 percent 14 percent 19.5 percent (Alberta) or 23.2 percent (Ontario) 25 percent gross unless net election (42.92 percent) 25 percent gross unless net election percent Partners file returns and pay tax at their appropriate rate percent Partners file Recapture 30 percent 28 percent 39 percent or 46.4 percent c returns and pay tax at their appropriate rate 116 Clearance Certificate No Yes No Yes Yes if any nonresident partners Capital Tax Maybe d Maybe d No No No No Thin Capitalization Withholding on distributions: Interest Dividends Yes 0 percent if nonparticipating and arm s-length or U.S. exemption e No (CRA may seek to clarify GAAR) Only if secured by property/business income No No No (may be some GAAR risk) 0 percent if nonparticipating and arm s-length or U.S. exemption e Only if secured by property/business income 25 percent if deductible from Canadian-source income 25 percent/15 No N/A N/A N/A N/A percent/5 percent f Trust Income N/A N/A 25 percent/15 percent g (not on capital) 25 percent gross unless net election percent percent percent Yes N/A N/A N/A N/A N/A a Assumes income from property (not business). b Based on Ontario rates. Decreasing to 25 percent by c Alberta, Ontario rates. d There is no federal capital tax. There is still provincial capital tax on certain corporations in Manitoba until 2011; Nova Scotia until July 1, 2012; and Quebec until e 25 percent in other cases; reduced to 10 percent under most treaties. f Most of Canada s treaties reduce the rate of withholding tax on dividends to 15 percent and to 5 percent when the recipient is a corporation that owns a minimum of 10 percent of the voting shares. g Most of Canada s treaties reduce the withholding tax rate on trust distributions to 15 percent. TAX NOTES INTERNATIONAL NOVEMBER 15,

CANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1

CANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 CANADIAN CORPORATE TAXATION A General Guide January 31, 2011 TABLE OF CONTENTS PART A PAGE INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 POTENTIAL DISADVANTAGES OF INCORPORATION

More information

Cross Border Tax Issues

Cross Border Tax Issues Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information

More information

Structuring Entry into the Canadian Market: A Corporate Tax Primer

Structuring Entry into the Canadian Market: A Corporate Tax Primer Structuring Entry into the Canadian Market: A Corporate Tax Primer It is critical for non-residents to obtain proper Canadian legal advice respecting their long-term tax position before entering the Canadian

More information

Treatment of Hybrid Entities. 5th Taxation of Inbound Investment Course September 19 & 20, 2011 Kathleen S.M. Hanly and Kevin H.

Treatment of Hybrid Entities. 5th Taxation of Inbound Investment Course September 19 & 20, 2011 Kathleen S.M. Hanly and Kevin H. Treatment of Hybrid Entities 5th Taxation of Inbound Investment Course September 19 & 20, 2011 Kathleen S.M. Hanly and Kevin H. Yip Topics Concepts: Fiscally transparent entity Hybrid entity Art. IV:6

More information

Corporate Taxation & Structuring in Canada and Canadian Scientific Research & Experimental Development Program Overview (SR&ED)

Corporate Taxation & Structuring in Canada and Canadian Scientific Research & Experimental Development Program Overview (SR&ED) Corporate Taxation & Structuring in Canada and Canadian Scientific Research & Experimental Development Program Overview (SR&ED) Claude E. Jodoin, M.Fisc. Maximize your R&D $...Look North of the border!

More information

TAX PLANNING FOR IMMIGRATION TO CANADA. Jack Bernstein & Ron Choudhury Aird & Berlis LLP Toronto, Ontario

TAX PLANNING FOR IMMIGRATION TO CANADA. Jack Bernstein & Ron Choudhury Aird & Berlis LLP Toronto, Ontario TAX PLANNING FOR IMMIGRATION TO CANADA Jack Bernstein & Ron Choudhury Aird & Berlis LLP Toronto, Ontario *Submitted for presentation at the Pre-immigration Planning and Exit Taxation, Visas and Passport

More information

TAX LAW / INVESTMENT FUNDS BULLETIN CANADA EXTENDS SOURCE TAXATION FOR INVESTMENT FUNDS

TAX LAW / INVESTMENT FUNDS BULLETIN CANADA EXTENDS SOURCE TAXATION FOR INVESTMENT FUNDS February 9, 2005 CANADA EXTENDS SOURCE TAXATION TAX LAW / INVESTMENT FUNDS BULLETIN The Department of Finance released on December 6, 2004, draft legislation (the Amendments ) implementing the March 23,

More information

Provinces and territories also impose income taxes on individuals in addition to federal taxes

Provinces and territories also impose income taxes on individuals in addition to federal taxes Worldwide personal tax guide 2013 2014 Canada Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Canada Revenue Agency (CRA)

More information

management fee documentation

management fee documentation Issue 2010-02 www.bdo.ca the tax factor e-communications from the cra READ MORE p4 management fee documentation READ MORE p6 relief on US FBAR requirements READ MORE p8 Changes to the Tax Deferral on Publicly

More information

CONTINUING ISSUES FOR U.S. LLCS INVESTING INTO CANADA

CONTINUING ISSUES FOR U.S. LLCS INVESTING INTO CANADA MARCH 2010 CONTINUING ISSUES FOR U.S. LLCS By Elinore Richardson and Stephanie Wong TAX LAW BULLETIN The Canada Revenue Agency ( CRA ), on February 11, 2010, issued a Technical Memorandum on the application

More information

How Canada Taxes Foreign Income

How Canada Taxes Foreign Income - 1 - How Canada Taxes Foreign Income (Summary) Purpose of the book The purpose of writing this book, entitled How Canada Taxes Foreign Income is particularly for the benefit of foreign tax lawyers, accountants,

More information

Taxation of Non-resident Investors in Canadian Investment Funds

Taxation of Non-resident Investors in Canadian Investment Funds Taxation of Non-resident Investors in Canadian Investment Funds by Melody Chiu PricewaterhouseCoopers LLP Published in Canadian Tax Journal S This article deals with the Canadian tax implications for non-resident

More information

Contents. Application. Summary

Contents. Application. Summary NO.: IT-99R5 (Consolidated) DATE: See Bulletin Revisions section SUBJECT: REFERENCE: INCOME TAX ACT Legal and Accounting Fees Paragraph 18(1)(a) (also sections 9 and 239; subsections 13(12), 20(9), and

More information

CYPRUS TAX CONSIDERATIONS

CYPRUS TAX CONSIDERATIONS TAXATION The following summary of material Cyprus, US federal income and United Kingdom tax consequences of ownership of the GDRs is based upon laws, regulations, decrees, rulings, income tax conventions

More information

Tax Card 2013 With effect from 1 January 2013 Lithuania. KPMG Baltics, UAB

Tax Card 2013 With effect from 1 January 2013 Lithuania. KPMG Baltics, UAB Tax Card 2013 With effect from 1 January 2013 Lithuania KPMG Baltics, UAB CORPORATE INCOME TAX Taxable profit of Lithuanian and foreign corporate taxpayers is subject to a standard (flat) rate of 15%.

More information

NORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM

NORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM NORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM Introduction This Stock Dividend Program (the "Program") provides eligible holders ("Shareholders") of common shares ("Common Shares") of Northern

More information

Tax Planning for New Immigrants and Returning Residents

Tax Planning for New Immigrants and Returning Residents Tax Planning for New Immigrants and Returning Residents Federated Press Seminar November 6, 2013 Presented by: Lorne Saltman Four Levels of Planning Pre-Immigration Planning Immigration Planning Post-Immigration

More information

Comparing REITs. kpmg.ca

Comparing REITs. kpmg.ca Comparing REITs US vs. Canada January 2013 kpmg.ca Table of Contents REITs US & Canada Tax at Shareholders Level el US & Canada Corporate domestic shareholders Individual domestic shareholders Foreign

More information

Canadian Corporate Tax Guide

Canadian Corporate Tax Guide Canadian Corporate Tax Guide P850 Goodmans Tax Guide Cover:P850 Goodmans Tax Guide Cover 10-01-14 5:21 PM Page 2 Canadian Corporate Tax Guide About This Guide If you are considering doing business in Canada,

More information

The Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan

The Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan The Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan Offering Circular Effective November 6, 2013 The description contained in this Offering Circular of the Canadian and U.S. income tax

More information

International Taxation: Executive Brief

International Taxation: Executive Brief This executive brief provides an overview of the principal international taxation rules contained in the Income Tax Act (Canada) (Act). 1 These rules typically deal with the taxation of persons that have

More information

INCORPORATING YOUR BUSINESS

INCORPORATING YOUR BUSINESS November 2014 CONTENTS Advantages of incorporation Advantages of an SBC Summary INCORPORATING YOUR BUSINESS If you carry on a business, there are many tax planning opportunities which become available

More information

The Benefits of Using an Unlimited Liability Company

The Benefits of Using an Unlimited Liability Company The Benefits of Using an Unlimited Liability Company By Leonard Glass April 29, 2005 The first version of this paper was presented to the Taxation Subsection of the B.C. Branch of the Canadian Bar Association

More information

Canada-U.S. Estate Planning for the Cross-Border Executive

Canada-U.S. Estate Planning for the Cross-Border Executive February 16, 2010 Canada-U.S. Estate Planning for the Cross-Border Executive Beth Webel (Toronto) Nadja Ibrahim (Calgary) Agenda Canadian death tax regime US estate tax regime US citizens moving to Canada

More information

2 ND BIENNIAL ONTARIO NEW YORK LEGAL SUMMIT

2 ND BIENNIAL ONTARIO NEW YORK LEGAL SUMMIT 2 ND BIENNIAL ONTARIO NEW YORK LEGAL SUMMIT STRUCTURING FOR COMMERCIAL AND PERSONAL INVESTMENTS Co-Chairs: Thomas Nelson, Hodgson Russ LLP Lorne Saltman, Gardiner Roberts LLP Panelists: Mary Voce, Greenberg

More information

BLUM Attorneys at Law

BLUM Attorneys at Law BLUM Attorneys at Law CORPORATE TAXATION SYSTEM IN SWITZERLAND Outline of Swiss Corporate Tax System Levels of Taxation in Switzerland Resident companies are subject to: federal corporate income tax, and

More information

THE TAX-FREE SAVINGS ACCOUNT

THE TAX-FREE SAVINGS ACCOUNT THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income

More information

DESCRIPTION OF THE PLAN

DESCRIPTION OF THE PLAN DESCRIPTION OF THE PLAN PURPOSE 1. What is the purpose of the Plan? The purpose of the Plan is to provide eligible record owners of common stock of the Company with a simple and convenient means of investing

More information

INCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS

INCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS INCOME TAX CONSIDERATIONS IN SHAREHOLDERS' AGREEMENTS Evelyn R. Schusheim, B.A., LL.B., LL.M. 2010 Tax Law for Lawyers Canadian Bar Association The Queen s Landing Inn Niagara-on-the-Lake, Ontario OVERVIEW

More information

BANK OF MONTREAL SHAREHOLDER DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN

BANK OF MONTREAL SHAREHOLDER DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN BANK OF MONTREAL SHAREHOLDER DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN This Offering Circular covers common shares of Bank of Montreal (the Bank ) which may be purchased on the open market through

More information

U.S. Tax Structures Utilized In Connection With Foreign Investment In U.S. Real Estate. Jack Miles Kelley Drye & Warren LLP

U.S. Tax Structures Utilized In Connection With Foreign Investment In U.S. Real Estate. Jack Miles Kelley Drye & Warren LLP U.S. Tax Structures Utilized In Connection With Foreign Investment In U.S. Real Estate Jack Miles Kelley Drye & Warren LLP May 2, 2016 Topics I. Structuring Objectives II. Underlying U.S. Tax Rules --

More information

In This Issue. Earnings and Single-Member LLCs: Where Do We Start?...2 Anti-Discrimination and the Canada-UK Tax Treaty...5.

In This Issue. Earnings and Single-Member LLCs: Where Do We Start?...2 Anti-Discrimination and the Canada-UK Tax Treaty...5. In This Issue Earnings and Single-Member LLCs: Where Do We Start?...2 Anti-Discrimination and the Canada-UK Tax Treaty...5 A report on cross-border developments in Canadian tax law / March 2011 2 Earnings

More information

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS LAWS AND DECREES The Income Tax (Amendment) Law of 2005 The Special Contribution for Defence (Amendment) Law of 2004 The Assessment and Collection

More information

USA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax

USA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax USA Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Taxation of regulated investment companies: income tax Investment companies in the United States (US) are structured either as openend

More information

2010 TAX LAW FOR LAWYERS

2010 TAX LAW FOR LAWYERS 2010 TAX LAW FOR LAWYERS National Tax Law CLE Program INBOUND INVESTMENT CROSS BORDER ISSUES Working with Tax Treaties by Maralynne A. Monteith WeirFoulds LLP June 1, 2010 WHAT IS A TAX TREATY A tax treaty

More information

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income.

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income. Worldwide personal tax guide 2013 2014 The Netherlands Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Belastingdienst www.belastingdienst.nl

More information

EMPLOYEE STOCK OPTIONS

EMPLOYEE STOCK OPTIONS TAX LETTER May 2015 EMPLOYEE STOCK OPTIONS FOREIGN EXCHANGE GAINS AND LOSSES CAREGIVER AND INFIRM DEPENDENT CREDITS MAKING TAX INSTALMENTS EARNED INCOME FOR RRSP PURPOSES AROUND THE COURTS EMPLOYEE STOCK

More information

Fifth Protocol to the Canada-U.S. Income Tax Treaty Reflections

Fifth Protocol to the Canada-U.S. Income Tax Treaty Reflections Fifth Protocol to the Canada-U.S. Income Tax Treaty Reflections The fifth Protocol to the Canada-U.S. Income Tax Convention (Treaty) was signed on September 21, 2007. This Tax Memo reflects on the effect

More information

Greece Country Profile

Greece Country Profile Greece Country Profile EU Tax Centre March 2013 Key factors for efficient cross-border tax planning involving Greece EU Member State Double Tax Treaties With: Albania Estonia Lithuania Serbia Armenia Finland

More information

FIRSTSERVICE CORPORATION NOTICE OF REDEMPTION & CONVERSION TO ALL REGISTERED HOLDERS OF OUTSTANDING 7% CUMULATIVE PREFERENCE SHARES, SERIES 1

FIRSTSERVICE CORPORATION NOTICE OF REDEMPTION & CONVERSION TO ALL REGISTERED HOLDERS OF OUTSTANDING 7% CUMULATIVE PREFERENCE SHARES, SERIES 1 FIRSTSERVICE CORPORATION NOTICE OF REDEMPTION & CONVERSION TO ALL REGISTERED HOLDERS OF OUTSTANDING 7% CUMULATIVE PREFERENCE SHARES, SERIES 1 To: All Registered Holders of Outstanding 7% Cumulative Preference

More information

Thinking Beyond Borders

Thinking Beyond Borders INTERNATIONAL EXECUTIVE SERVICES Thinking Beyond Borders Tanzania kpmg.com Tanzania Introduction Taxation of individuals under the Income Tax Act 2004 (ITA) is on the basis of both residence and source.

More information

TAXATION ON DEATH: DEEMED DISPOSITIONS AND POST MORTEM PLANNING. Professor Catherine Brown Faculty of Law University of Calgary

TAXATION ON DEATH: DEEMED DISPOSITIONS AND POST MORTEM PLANNING. Professor Catherine Brown Faculty of Law University of Calgary TAXATION ON DEATH: DEEMED DISPOSITIONS AND POST MORTEM PLANNING Professor Catherine Brown Faculty of Law University of Calgary Tax Law for Lawyers June 2010 i TABLE OF CONTENTS INTRODUCTION... 1 I. INCOME...

More information

The Lifetime Capital Gains Exemption

The Lifetime Capital Gains Exemption The Lifetime Capital Gains Exemption Introduction This Tax Topic briefly reviews the rules contained in section 110.6 of the Income Tax Act (the "Act") concerning the lifetime capital gains exemption and

More information

Investment into Canada

Investment into Canada Asia Pacific International Core of Excellence Investment into Canada Chris Roberge Deloitte AP ICE - Canada Vanessa Poon Deloitte AP ICE Canada June 6, 2012 Agenda Canadian tax regime overview Introduction

More information

FEDERATED PRESS CONFERENCE TAXATION OF CORPORATE REORGANIZATION February 27, 28 and March 1, 2002. DEBT RESTRUCTURING Kathleen S.M.

FEDERATED PRESS CONFERENCE TAXATION OF CORPORATE REORGANIZATION February 27, 28 and March 1, 2002. DEBT RESTRUCTURING Kathleen S.M. FEDERATED PRESS CONFERENCE TAXATION OF CORPORATE REORGANIZATION February 27, 28 and March 1, 2002 DEBT RESTRUCTURING Kathleen S.M. Hanly Debt Restructuring Distress preferred shares Debt forgiveness rules

More information

Non-Resident Withholding Tax Rates for Treaty Countries 1

Non-Resident Withholding Tax Rates for Treaty Countries 1 Non-Resident Withholding Tax Rates for Treaty Countries 1 firms Non-Resident Withholding Tax Rates for Treaty Countries 1 Country 2 Interest 3 Dividends 4 Royalties 5 Annuities 6 Pensions/ Algeria 15%

More information

New Canadian Tax Legislation. Hywel Jones Britannia Consulting Group

New Canadian Tax Legislation. Hywel Jones Britannia Consulting Group New Canadian Tax Legislation Hywel Jones Britannia Consulting Group 1 Introduction Trusts - Old rules New rules Case Studies Foreign Investment Entity rules What can you do? 2 Old Rules Deemed a Canadian

More information

Debt Restructuring. 17th Taxation of Corporate Reorganization Conference January 22, 23 & 24, 2013 Kathleen S.M. Hanly and Kevin H.

Debt Restructuring. 17th Taxation of Corporate Reorganization Conference January 22, 23 & 24, 2013 Kathleen S.M. Hanly and Kevin H. Debt Restructuring 17th Taxation of Corporate Reorganization Conference January 22, 23 & 24, 2013 Kathleen S.M. Hanly and Kevin H. Yip Debt Restructuring Legislative framework for insolvency proceedings

More information

Leveraged Life Insurance Personal Ownership

Leveraged Life Insurance Personal Ownership Leveraged Life Insurance Personal Ownership Introduction Leveraged life insurance is a financial planning strategy that uses the cash value of an exempt life insurance policy as collateral security for

More information

U.S. TAX ISSUES FOR CANADIANS

U.S. TAX ISSUES FOR CANADIANS March 2015 CONTENTS Snowbirds Canadians owning U.S. rental properties Summary U.S. TAX ISSUES FOR CANADIANS If you own rental property in the United States or spend extended periods of time there, you

More information

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13 Part 13 Close companies CHAPTER 1 Interpretation and general 430 Meaning of close company 431 Certain companies with quoted shares not to be close companies 432 Meaning of associated company and control

More information

FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS

FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Chapter 10 FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Daniel Cassidy 1 10.1 INTRODUCTION Foreign companies with U.S. business transactions face various layers of taxation. These include income, sales,

More information

Making the Most of Your Charitable Gifts for 2015

Making the Most of Your Charitable Gifts for 2015 Making the Most of Your Charitable Gifts for 2015 January 30, 2015 No. 2015-07 Canada s tax incentives for charitable donations are designed to make it easier for you to support your favourite charities.

More information

Replacement Rules for Capital Property

Replacement Rules for Capital Property TAX UPDATE Replacement Rules for Capital Property If you sell a capital property (let s call it the initial property ) at a gain, but replace the property with a replacement property within a specifi ed

More information

Coming to America. U.S. Tax Planning for Foreign-Owned U.S. Operations

Coming to America. U.S. Tax Planning for Foreign-Owned U.S. Operations Coming to America U.S. Tax Planning for Foreign-Owned U.S. Operations September 2015 Table of Contents Introduction... 2 Tax Checklist for Foreign-Owned U.S. Operations... 2 Typical Life Cycle of Foreign-Owned

More information

ULC Problems and Solutions. Miller Thomson Seminar: Tax Update October 22, 2009

ULC Problems and Solutions. Miller Thomson Seminar: Tax Update October 22, 2009 MILLER THOMSON LLP Barristers & Solicitors Patent & Trade-Mark Agents Robson Court 1000-840 Howe Street Vancouver, BC Canada V6Z 2M1 Tel. 604.687.2242 Fax. 604.643.1200 www.millerthomson.com VANCOUVER

More information

Malta Companies in International Tax Structuring February 2015

Malta Companies in International Tax Structuring February 2015 INFORMATION SHEET No. 126 Malta in International Tax Structuring February 2015 Introduction Malta is a reputable EU business and financial centre with an attractive tax regime and sound legislative framework.

More information

Understanding the Tax Implications of Exchange-Traded Funds

Understanding the Tax Implications of Exchange-Traded Funds Understanding the Tax Implications of Exchange-Traded Funds 11/21/2003 1 Forward Barclays Global Investors Canada Limited (Barclays Canada) is pleased to present "Understanding the Tax Implications of

More information

Netherlands. Croatia. Malta. Slovenia. Greece. Czech Republic. Portugal. Compulsory. households actual. social contributions.

Netherlands. Croatia. Malta. Slovenia. Greece. Czech Republic. Portugal. Compulsory. households actual. social contributions. Structure and development of tax revenues Table EL.: Revenue (% of GDP) 2004 2005 2006 2007 2008 2009 200 20 202 203 I. Indirect taxes : : 2.3 2.7 2.7.8 2.6 3.5 3. 3.4 VAT : : 6.8 7. 7.0 6.3 7. 7.2 7.

More information

Canada Releases Revised Back-to-Back Loan Rules

Canada Releases Revised Back-to-Back Loan Rules Volume 76, Number 4 October 27, 2014 Canada Releases Revised Back-to-Back Loan Rules by Steve Suarez Reprinted from Tax Notes Int l, October 27, 2014, p. 357 Canada Releases Revised Back-to-Back Loan Rules

More information

Tax Considerations Of Foreign

Tax Considerations Of Foreign FIRPTA requires that a buyer withhold 10% of the gross sales price, subject to certain exceptions, and send it to the Internal Revenue Service if the seller is a foreign person. U.S. Taxes Foreign investors

More information

Shareholder Dividend Reinvestment and Stock Purchase Plan

Shareholder Dividend Reinvestment and Stock Purchase Plan Shareholder Dividend Reinvestment and Stock Purchase Plan 2012 Offering circular 1 WHAT S INSIDE Introduction 3 Summary 4 Contact Information 4 Questions and Answers 5 Shareholder Dividend Reinvestment

More information

Recent developments regarding Mexico s tax treaty network and relevant court precedents

Recent developments regarding Mexico s tax treaty network and relevant court precedents Recent developments regarding Mexico s tax treaty network and relevant court precedents Mexico has a relatively short background on the negotiation and application of treaties for the avoidance of double

More information

I. CANADIAN INBOUND INVESTMENTS - GENERAL CONSIDERATIONS

I. CANADIAN INBOUND INVESTMENTS - GENERAL CONSIDERATIONS CANADIAN PETROLEUM TAX JOURNAL Vol. 27, 2014-3 HOLDING STRUCTURES FOR CANADIAN INBOUND AND OUTBOUND INVESTMENTS - THE UK OPTION Prepared for: Canadian Petroleum Tax Society 2014 Annual Conference by Dion

More information

Your U.S. vacation property could be quite taxing by Jamie Golombek

Your U.S. vacation property could be quite taxing by Jamie Golombek June 2015 Your U.S. vacation property could be quite taxing by Jamie Golombek It seems everywhere we look, Canadians are snapping up U.S. vacation properties. Though your vacation property may be located

More information

Real Property. mccarthy.ca Doing Business in Canada 2013

Real Property. mccarthy.ca Doing Business in Canada 2013 51 Land Registration Systems Each Canadian province has its own systems for registering interests in real property, as property legislation is constitutionally a provincial responsibility in Canada. In

More information

Spin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009

Spin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009 Spin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009 On March 12, 2009, Time Warner Inc. ( Time Warner ) completed the spin-off (the Spin-Off ) of Time Warner s ownership interest

More information

Estate Planning and Income Tax Issues for Nonresident Aliens Owning US Real Estate

Estate Planning and Income Tax Issues for Nonresident Aliens Owning US Real Estate Estate Planning and Income Tax Issues for Nonresident Aliens Owning US Real Estate 1. Introductory Matters. Presented by Paul McCawley Greenberg Traurig, P.A. mccawleyp@gtlaw.com 954.768.8269 October 24,

More information

International aspects of taxation in the Netherlands

International aspects of taxation in the Netherlands International aspects of taxation in the Netherlands Individuals resident in the Netherlands are subject to income tax on their worldwide income. Companies established in the Netherlands are subject to

More information

TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK

TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK TRINIDAD AND TOBAGO Introduction TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK CONTACT INFORMATION Myrna Robinson-Walters M. Hamel-Smith &Co Eleven Albion, Dere and Albion Streets, Port-of-Spain,Trinidad

More information

Canadian Intangibles, Noncompete Payments, and Allocations of Purchase Price

Canadian Intangibles, Noncompete Payments, and Allocations of Purchase Price Volume 65, Number 13 March 26, 2012 Canadian Intangibles, Noncompete Payments, and Allocations of Purchase Price by Jack Bernstein Reprinted from Tax Notes Int l, March 26, 2012, p. 1011 Canadian Intangibles,

More information

Employee Life and Health Trust Explanatory Notes

Employee Life and Health Trust Explanatory Notes Employee Life and Health Trust Explanatory Notes 6(1)(a) Paragraph 6(1)(a) of the Income Tax Act (the Act) provides for the inclusion in computing the income of a taxpayer from an office or employment

More information

ALBERTA CORPORATE TAX ACT

ALBERTA CORPORATE TAX ACT Province of Alberta ALBERTA CORPORATE TAX ACT Revised Statutes of Alberta 2000 Current as of December 11, 2015 Office Consolidation Published by Alberta Queen s Printer Alberta Queen s Printer 7 th Floor,

More information

TAX ASPECTS OF MUTUAL FUND INVESTING

TAX ASPECTS OF MUTUAL FUND INVESTING Tax Guide for 2015 TAX ASPECTS OF MUTUAL FUND INVESTING INTRODUCTION I. Mutual Fund Distributions A. Distributions From All Mutual Funds 1. Net Investment Income and Short-Term Capital Gain Distributions

More information

Canadian Taxation of Foreign Exchange Gains and Losses

Canadian Taxation of Foreign Exchange Gains and Losses Volume 53, Number 2 January 12, 2009 Canadian Taxation of Foreign Exchange Gains and Losses by Steve Suarez and Byron Beswick Reprinted from Tax Notes Int l, January 12, 2009, p. 157 Canadian Taxation

More information

Canada Customs & Revenue Agency (CRA) Taxation Filing & Remittance Requirements Annual Publication

Canada Customs & Revenue Agency (CRA) Taxation Filing & Remittance Requirements Annual Publication Public Practice Bulletin February 2009 Canada Customs & Revenue Agency (CRA) Taxation Filing & Remittance Requirements Annual Publication To assist Alberta practicing offices, below is a publication reflecting

More information

DOING BUSINESS IN GERMANY Overview on Taxation

DOING BUSINESS IN GERMANY Overview on Taxation DOING BUSINESS IN GERMANY Overview on Taxation March 2015 1. Introduction 1.1. Generally, taxes are administered and enforced by the competent local tax office. These local tax offices administer in particular

More information

TAX ELECTION INSTRUCTIONS FOR THE DISPOSITION OF AASTRA TECHNOLOGIES LIMITED s COMMON SHARES ( Aastra Shares ) ( TAX PACKAGE )

TAX ELECTION INSTRUCTIONS FOR THE DISPOSITION OF AASTRA TECHNOLOGIES LIMITED s COMMON SHARES ( Aastra Shares ) ( TAX PACKAGE ) TAX ELECTION INSTRUCTIONS FOR THE DISPOSITION OF AASTRA TECHNOLOGIES LIMITED s COMMON SHARES ( Aastra Shares ) ( TAX PACKAGE ) MITEL NETWORKS CORPORATION ( Mitel ) ACQUISITION OF AASTRA TECHNOLOGIES LIMITED

More information

Mexico Mergers and acquisitions involving Mexican assets

Mexico Mergers and acquisitions involving Mexican assets p84-88 IM&A - Chevez Rulz 21/03/2013 08:44 Page 84 Mexico Mergers and acquisitions involving Mexican assets by Ricardo Rendon and Layda Carcamo, Chevez, Ruiz, Zamarripa y Cia, S.C. Whenever a corporate

More information

Explanatory Notes Relating to the Income Tax Act, the Excise Tax Act and the Income Tax Regulations

Explanatory Notes Relating to the Income Tax Act, the Excise Tax Act and the Income Tax Regulations Explanatory Notes Relating to the Income Tax Act, the Excise Tax Act and the Income Tax Regulations Published by The Honourable James M. Flaherty, P.C., M.P. Minister of Finance September 2013 Preface

More information

TAX LETTER for May 2004 INCOME ATTRIBUTION RULES SPLIT INCOME OF MINOR CHILDREN FEDERAL BUDGET HIGHLIGHTS AROUND THE COURTS

TAX LETTER for May 2004 INCOME ATTRIBUTION RULES SPLIT INCOME OF MINOR CHILDREN FEDERAL BUDGET HIGHLIGHTS AROUND THE COURTS BLAIN M. ARCHER, B.Sc., CA* PAUL M. FOURNIER, B.Sc., CA* RUSS J. WILSON, B.Sc., CA* KATRIN BRAUN, B.B.A., CA* KELLY A. RIEHL, B. Comm., CA* TAX LETTER for May 2004 INCOME ATTRIBUTION RULES SPLIT INCOME

More information

Tax Consequences of Different Types of Transfers and Different. Business Transactions

Tax Consequences of Different Types of Transfers and Different. Business Transactions Tax Consequences of Different Types of Transfers and Different Business Transactions by Joan E. Jung, Tax Partner Minden Gross LLP, a member of MERITAS Law Firms Worldwide. (Excerpts from materials presented

More information

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%.

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited

More information

IBA 2001 CANCUN COMMITTEE NP STRUCTURING INTERNATIONAL EQUITY COMPENSATION PLANS CASE STUDY

IBA 2001 CANCUN COMMITTEE NP STRUCTURING INTERNATIONAL EQUITY COMPENSATION PLANS CASE STUDY IBA 2001 CANCUN COMMITTEE NP STRUCTURING INTERNATIONAL EQUITY COMPENSATION PLANS CASE STUDY CANADIAN APPROACH BY ALAIN RANGER FASKEN MARTINEAU DuMOULIN LLP Stock Exchange Tower Suite 3400, P.O. Box 242

More information

Dealing with Stock Options in Corporate Acquisitions Navigating the Labyrinth

Dealing with Stock Options in Corporate Acquisitions Navigating the Labyrinth Dealing with Stock Options in Corporate Acquisitions Navigating the Labyrinth Precis In a transaction involving the purchase and sale of shares of a corporation, there may be outstanding employee stock

More information

Purchasing U.S. Real Estate

Purchasing U.S. Real Estate Purchasing U.S. Real Estate Tax Considerations for the Non-U.S. Investor Updated October 2015 Table of Contents Introduction... 2 Ownership in Personal Name... 2 Buying for Personal Use... 3 Buying for

More information

Personal Home and Vacation Properties -Using the Principal Residence Exemption

Personal Home and Vacation Properties -Using the Principal Residence Exemption Personal Home and Vacation Properties -Using the Principal Residence Exemption Introduction Your family s home is generally known to be exempt from capital gains taxation, but what about the family cottage

More information

2011 TAX LAW FOR LAWYERS

2011 TAX LAW FOR LAWYERS 2011 TAX LAW FOR LAWYERS Rollover Provisions of Sections 51, 85.1, 86 and 86.1 BY Donald N. Cherniawsky, Q.C., C.A. F. Patrick Kirby, Q.C., F.C.A. Mike Dolson Felesky Flynn LLP (Edmonton) May 23, 2011

More information

Strategies for Resolving Cross-Border Tax Controversies

Strategies for Resolving Cross-Border Tax Controversies Strategies for Resolving Cross-Border Tax Controversies 11th Annual Conference on Canada-US Cross-Border Tax Strategies Council for International Tax Education (CITE) Toronto, ON October 17-18, 2005 Alan

More information

Canada. Contact James Yager KPMG in Canada Tax Partner T: +1 416 777 8214 E: jyager@kpmg.ca

Canada. Contact James Yager KPMG in Canada Tax Partner T: +1 416 777 8214 E: jyager@kpmg.ca Canada Introduction Liability to Canadian tax is determined by residence status for taxation purposes and the source of income derived by an individual. Income tax is levied at progressive rates on a person

More information

FACTORING AND FINANCING IN CANADA WHAT EVERY U.S. FACTOR AND LAWYER WANTS TO KNOW ABOUT PURCHASING AND TAKING SECURITY ON CANADIAN RECEIVABLES

FACTORING AND FINANCING IN CANADA WHAT EVERY U.S. FACTOR AND LAWYER WANTS TO KNOW ABOUT PURCHASING AND TAKING SECURITY ON CANADIAN RECEIVABLES FACTORING AND FINANCING IN CANADA WHAT EVERY U.S. FACTOR AND LAWYER WANTS TO KNOW ABOUT PURCHASING AND TAKING SECURITY ON CANADIAN RECEIVABLES Cross-border transactions involving U.S. and Canadian parties

More information

The authors wish to acknowledge the contributions of Jared Mackey of Bennett Jones LLP in the preparation of this paper.

The authors wish to acknowledge the contributions of Jared Mackey of Bennett Jones LLP in the preparation of this paper. CANADIAN PETROLEUM TAX JOURNAL Vol. 26, 2013-5 Forming U.S. Master Limited Partnerships with Canadian Assets: A U.S. and Canadian Tax Perspective Greg Johnson, Bennett Jones LLP (Calgary), and Tim Devetski,

More information

Module 8: Taxable income and tax payable Corporations Part 1

Module 8: Taxable income and tax payable Corporations Part 1 Module 8: Taxable income and tax payable Corporations Part 1 Overview As with an individual, a corporation's income is determined under section 3. For corporations, section 3 income is reclassified prior

More information

PROTOCOL ARTICLE 1. Paragraph 3 of Article II (Taxes Covered) of the Convention shall be deleted and replaced by the following paragraph:

PROTOCOL ARTICLE 1. Paragraph 3 of Article II (Taxes Covered) of the Convention shall be deleted and replaced by the following paragraph: PROTOCOL BETWEEN THE KINGDOM OF SPAIN AND CANADA AMENDING THE CONVENTION BETWEEN SPAIN AND CANADA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

More information

TAX ISSUES RAISED BY LNG PROJECTS

TAX ISSUES RAISED BY LNG PROJECTS TAX ISSUES RAISED BY LNG PROJECTS Jon Lobb Baker Botts L.L.P. ABSTRACT This paper discusses tax issues that may be encountered by a company investing in an LNG project. 1. Income Taxes A seller's income

More information

DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN OFFERING CIRCULAR

DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN OFFERING CIRCULAR DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN OFFERING CIRCULAR December 18, 2013 Shareholders should read carefully the entire Offering Circular before making any decision regarding the Dividend Reinvestment

More information

Article 1. Paragraph 3 of Article IV Dual resident companies

Article 1. Paragraph 3 of Article IV Dual resident companies DEPARTMENT OF THE TREASURY TECHNICAL EXPLANATION OF THE PROTOCOL DONE AT CHELSEA ON SEPTEMBER 21, 2007 AMENDING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND CANADA WITH RESPECT TO TAXES ON INCOME

More information