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Dual Jurisdictions

Dual Jurisdictions - jurisdiction to tax the particular...

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Dual Jurisdictions * That an individual or crop. has achieved Canadian-resident status - making the entity's world income taxable in Canada - does not preclude other foreign jurisdictions from claiming the right to tax the same activity and income generated within their boundaries * The process is rationalized by the application of both the International Tax Treaty and Canada's Income Tax Act * The International Tax Treaty determines the rights of the forgiven
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Unformatted text preview: jurisdiction to tax the particular income; the Income Tax Act offers, at most, a reduction of Canadian tax by the amount paid to the foreign jurisdiction on the same income * Although double taxation is avoided when income is taxed simultaneously by the Canada and a foreign country, the result is that the rate of tax paid on foreign income by the Canadian entity will always equal the tax rate imposed by the country with the higher tax rate...
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