Unformatted text preview: s. if a us company (or a us consolidated group) does not claim a foreign tax credit a deduction may still be available. if a deduction is not available, the Canadian tax paid should be carried forward for 10 years and may be applied as a foreign tax credit against future foreign passive income. 62 supra note 17. i nternational tax planning n 111 capital gains are income derived in connection with or incidental to the trade or business.
initially, at the 2008 iFa seminar, the Cra stated that it had not resolved this issue, but indicated that it may be favourably disposed to the inclusion of gains in appropriate circumstances. However, the question and response was removed when the written package from the seminar was subsequently distributed.
During the 2008 round table,63 the Cra confirmed that income for the purposes of article xxix a(3) can include taxable capital gains. because the term “income” is not defined in the treaty, it should have the same meaning that it has under Canadian domestic law. accordingly, income under the act includes taxable cap...
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