in-print-bilateral-benefits-0409-en

5 7 n o 1 86 118 international tax planning co editors

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Unformatted text preview: 9) vol. 5 7 , n o 1 , 86 - 118 International Tax Planning Co-editors: Lincoln Schreiner* and Michael Maikawa** NavIgaTINg The New BIlaTeral lImITaTIoN-oN-BeNefITs rule Kara Ann Selby ** In this paper, the author provides a general explanation of the limitation-on-benefits article, examines selected practical problems in its application, highlights areas in which additional guidance is required, identifies potential problems and anomalies that taxpayers may encounter in applying the new rules, and makes certain recommendations. Keywords: TreaTy n TreaTy shopping n wiThholding Taxes n capiTal gains n benefiTs n residence CoNTeNTs Introduction The New Bilateral Article XXIX A Implications for Canadian Taxpayers Qualifying Person Tests Article XXIX A(2)(c): Public Company Exemption Article XXIX A(2)(d): Subsidiary of a Public Company Test Article XXIX A(2)(e): Ownership Test Article XXIX A(2)(e): Base-Erosion Test Example 1: Takeover of US Company by Canadian Public Company Active Trade or Business Test Trade or Business In Connection with or Incidental to In Connection with Incidental to Substantial Example 2: Substantiality of a US Company Example 3: Interest Payments from Canadian Company to US Operating Company Derivative Benefits Test Example 4: Interest Payments from Canadian Company to US Operating Company * Of PricewaterhouseCoopers LLP, Vancou...
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This note was uploaded on 11/03/2013 for the course ACCOUNTING 346 taught by Professor William during the Fall '12 term at DeVry Chicago.

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