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Unformatted text preview: business Entities, “report Offering Proposals regarding the ‘Derivative benefits’ Provision Found in the Limitation on benefits article of Certain u.s. income Tax Treaties” (May 21, 2008), BNA Daily Tax Report, released on May 28, 2008. 11 article xxix a(2). 12 article xxix a(3). 13 article xxix a(4). 90 n c anadian tax journal / revue fiscale canadienne ( 2009) vol. 5 7 , n o 1 payments, or for an exemption from gains or business profits attributable to a permanent establishment.14
Except in the case of us public corporations, it will often be impossible or impractical to assemble the information that is required to apply the tests in the LOb article. Determining the ultimate beneficial ownership of the payee may be difficult, if not impossible, in certain situations. When it is not clear that the payee is a qualifying person or meets one of the other tests in the LOb article, the Canadian resident payer may have no choice but to withhold at a non-treaty rate. Further, the rules appear to ap...
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