Relationship Between Domestic Anti-Avoidance Provisions and Tax Treaties

34 Pages Posted: 7 Jun 2012 Last revised: 30 Oct 2013

See all articles by Jinyan Li

Jinyan Li

York University - Osgoode Hall Law School

Daniel Sandler

University of Western Ontario - Faculty of Law

Date Written: 1997

Abstract

This article examines the interaction between Canada’s anti-avoidance rules that may apply in an international context and Canada’s tax treaties. The article illustrates a number of situations in which conflicts may arise between the two regimes, and considers how a court might resolve these conflicts. None of the domestic anti-avoidance provisions include specific treaty override language. Nevertheless, it is clear, at least in some cases, that the legislation is specifically targeted at treaty situations. In other cases, it is likely that parliament intended that the provisions would apply notwithstanding any conflicting treaty provisions. However, it is unlikely that a domestic court would conclude that a domestic provision overrides a treaty in the absence of clear statutory language to that effect.

Keywords: anti-avoidance, tax, treaties

JEL Classification: K10, K34, K40, K41

Suggested Citation

Li, Jinyan and Sandler, Daniel, Relationship Between Domestic Anti-Avoidance Provisions and Tax Treaties (1997). Canadian Tax Journal/Revue Fiscale Canadienne, Vol. 45, No. 5, 1997, Available at SSRN: https://ssrn.com/abstract=2079095

Jinyan Li (Contact Author)

York University - Osgoode Hall Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416-736-5025 (Phone)

Daniel Sandler

University of Western Ontario - Faculty of Law ( email )

London, Ontario N6A 3K7 N6A 3K7
Canada

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