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Unformatted text preview: event perceived treaty-shopping abuses through the application of the Canadian general anti-avoidance rule (gaar).4 Now, us residents that seek treaty benefits from Canada must satisfy one of the tests established in the LOb article.
Examination of the protocol resulted in numerous questions from taxpayers, advisers, and academics about how the Canadian tax authorities will interpret the LOb article. Then, on July 10, 2008, the us Treasury Department released the technical explanation to the protocol,5 which was expected to provide guidance concerning 1 The Convention between Canada and the united states of america with respect to Taxes on income and on Capital, signed at Washington, DC on september 26, 1980, as amended by the protocols signed on June 14, 1983, March 28, 1984, March 17, 1995, July 29, 1997, and september 21, 2007 (herein referred to as “the Canada-us tax treaty” or “the treaty”). 2 1995 protocol enacted in Canada by sC 1995, c. 34. 3 The protocol was signed on s...
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