Relationship Between Domestic Anti-Avoidance Provisions and Tax Treaties
34 Pages Posted: 7 Jun 2012 Last revised: 30 Oct 2013
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: Suggested Citation