Canada: Limitation on the Elimination of Double Taxation Under the Canada-Brazil Income Tax Treaty
Tax Treaty Case Law Around the Globe 2017 (Forthcoming)
13 Pages Posted: 26 Jul 2017
Date Written: July 10, 2017
This short comment reviews the Tax Court of Canada decision in Société générale valeurs mobilieres inc. v. The Queen, addressing the interpretation of the elimination of double taxation article in the Canada-Brazil Income Tax Treaty. The comment argues that the Court rightly rejected the taxpayer’s argument that treaty relief should extend to Canadian tax otherwise payable on gross interest income without taking into account any expenses incurred to earn this income, accepting the revenue department’s argument that treaty relief was limited to Canadian tax otherwise payable on net interest income earned in Brazil.
Keywords: International Tax, Tax Treaties, Elimination of Double Taxation
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