,canada ,rev5ue ,ag5cy #a ,9come ,tax ,te*nical ,news ,numb] #ce ,febru>y #bf1 #bjjg ,9 ,? ,issue ,9 ,? ,issue ,tr1ty ,resid;e--,resid5t ( ,3v5i;e ,! ,9come ,tax ,te*nical ,news is produc$ 0! ,legislative ,policy & ,regulatory ,a6airs ,bran*4 ,x is provid$ = 9=m,n purposes only & does n replace ! law4 ,if y h any -;ts or su7es;ns ab ! matt]s 4cuss$ 9 ? public,n1 pl1se s5d !m to3 ,9come ,tax ,rul+s ,directorate ,legislative ,policy & ,regulatory ,a6airs ,bran* ,canada ,rev5ue ,ag5cy ,ottawa ,,on ,k#a;,a #j;,l#e #a  ,te*nical ,news a#a ,! ,9come ,tax ,te*nical ,news c 2 f.d on ! ,canada ,rev5ue ,ag5cy ,9t]net site at _+www.cra.gc.ca_:4 ,tr1ty ,resid;e--,resid5t ( ,3v5i;e ,9 ord] 6qualify =! b5efits "u ,canada's tax tr1ties1 a p]son m/ 2 3sid]$ a resid5t (a 3tract+ /ate =! purposes (! relevant tr1ty4 ,tr1ty resid;e is al a prerequisite = c]ta9 divid5d deduc;ns "u ,canada's dome/ic =eign a6iliate rules & regul,ns4 ,6be a resid5t (a 3tract+ /ate1 a p]son m/ 2 8lia# 6tax0 9 t /ate 0virtue (a crit]ion ref]r$ 6in ! resid;e >ticle (! relevant tax tr1ty4 ,x has be5 ! l;g-/&+ posi;n (! ,canada ,rev5ue ,ag5cy 78,,cra07 t1 6be 3sid]$ 8lia# 6tax0 =! purposes (! resid;e >ticle ( \r tr1ties1 a p]son m/ 2 subject 6! mo/ -preh5sive =m ( tax,n z exi/s 9 ! relevant c.try4 ,= #b  ,tr1ty ,resid;e b#a ,canada1 ? g5],y m1ns full tax liabil;y on _wwide 9come4 ,? is support$ 0! -;ts f.d 9 ! ,supreme ,c\rt deci.n ,! ,que5 v4 ,cr[n ,=e/ ,9du/ries ,ltd et ;al 7#ie ,,dtc #echi7 z well z ! ,-;t>y 6! ,,oecd ,model4 ,we 7 rec5tly ask$ 6cl>ify ! m1n+ (! t]m 8lia# 6tax04 ,? reque/ >ises 2c (! fact t1 9 c]ta9 c.tries1 ! tax sy/em g5],y taxes 5tities t h a "picul> atta*;t 6t c.try on a _wwide 9come basis at a rate -p>a# 6,canadian tax rates1 b "s ( ^! 5tities >e1 ac 6special rules1 ei exempt$ f tax,n or tax$ at a v l[ rate4 ,,cra's posi;n has previ\sly be5 t 5tities b5efit+ f s* special regimes may n 2 subject 6! mo/ -preh5sive =m ( tax,n & "!=e1 wd n 2 8lia# 6tax04 ,tax profes.nals h su7e/$ t ! same r,nale %d adv]sely a6ect *>ities & p5.ns1 b we n"o!.s 3sid] s* 5tities z 8resid5ts0 "u \r tr1ties & grant !m tr1ty b5efits4 ,6cl>ify any ambigu;y & z ann\nc$ at ! #bjje ,canadian ,tax #c  ,tr1ty ,resid;e c#a ,f.d,n 3f];e1 ,,cra agre$ 6"utake a review ( xs posi;n reg>d+ ! level ( tax,n a jurisdic;n m/ levy on a p]son's 9come 2f t p]son wd 2 3sid]$ 8lia# 6tax0 "u a tax tr1ty4 ,! ,,cra has rec5tly -plet$ ! review4 ,x rema9s ,,cra's posi;n t1 6be 3sid]$ 8lia# 6tax0 =! purposes (! resid;e >ticle ( ,canada's tax tr1ties1 a p]son m/ g5],y 2 subject 6! mo/ -preh5sive =m ( tax,n z exi/s 9 ! relevant c.try4 ,?1 h["e1 does n necess>ily m1n t a p]son m/ pay tax 6a "picul> jurisdic;n4 ,"! may 2 situ,ns ": a p]son's _wwide 9come is subject 6a 3tract+ /ate's full tax+ jurisdic;n b t /ate's dome/ic law does n levy tax on a p]son's taxa# 9come or taxes x at l[ rates4 ,9 ^! cases1 ! ,,cra w g5],y a3ept t ! p]son is a resid5t (! o!r ,3tract+ ,/ate un.s ! >range;t is abusive 7e4g4 tr1ty %opp+ ": ! p]son is 9 fact only a 8resid5t ( #d  ,tr1ty ,resid;e d#a 3v5i;e074 ,s* cd 2 ! case1 = example1 ": a p]son is plac$ )9 ! tax+ jurisdic;n ( --------------------------------------#b a ,3tract+ ,/ate 9 ord] 6ga9 tr1ty b5efits 9 a mann] t does n cr1te any mat]ial economic nexus 6t ,/ate4 ,z 3firm$ 0! ,supreme ,c\rt 9 ,! ,que5 v4 ,cr[n ,=e/ ,9du/ries ,ltd et ;al 7#ie ,,dtc #echi71 review+ ! 9t5;n (! "pies (a tax tr1ty is a v important ele;t 9 del91t+ ! scope (! applic,n (! tr1ty4 ,acly1 ! det]m9,n ( resid5cy =! purposes (a tax tr1ty rema9s a "q ( fact1 & ea* case w 2 decid$ on xs [n facts ) an eye 6! 9t5;n (! "pies (! "picul> 3v5;n &! purpose ( 9t]n,nal tax tr1ties4 #e