TaxChambers LLP to present at the National Tax Conference

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Vitaly Timokhov will present a 2.5 hour workshop at the 63rd Annual Tax Conference in Montreal on November 27, 2011 on Canada-US Tax Convention – Limitation on Benefits.   Vitaly is an editor and author of the Tax Advisor’s Guide to the Canada-U.S. Tax Treaty, a 2-volume treatise on the Canada-U.S. Tax Treaty published by Carswell Reuters Canada.

Article XXIXA (Limitation on Benefits) is an anti-avoidance rule built into the Canada-U.S. Tax Treaty. The purpose of this provision is to prevent treaty shopping. This broad goal is achieved by denying the benefits of the Treaty to any U.S. recipient of Canadian-sourced income unless the recipient is a qualifying person, satisfied a number of complex tests set out in the LOB Article, or obtained relief from Canadian tax authorities. The workshop will focus on the following subjects:

  • Treaty shopping and LOB: who is entitled to relief under the Canada-U.S. Tax Treaty
  • What is a qualifying person
  • Publicly traded entities and their subsidiaries
  • Relief for privately held entities: ownership and base erosion test
  • LOB and fiscally transparent entities
  • Trusts and Estates
  • Pension and other Funds
  • Active Trade and Business Exception
  • Derivative Benefits Exception
  • Competent authority relief for non-qualifying persons and abuse of the Treaty
  • Canadian payor: duty to determine the eligibility of a U.S. recipient for Treaty benefits
  • Tax compliance and CRA Forms NR301, NR302, and NR303

For details and registraiton, see