| Citation: |
Morris v. M.N.R., 2009 FC 434, [2009] 4 F.C.R. D-4 |
T-1899-07 |
Income Tax
Non-Residents
Request under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 116 for exemption under Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income and on Capital, as enacted by Canada-Barbados Income Tax Agreement Act, S.C. 1980-81-82-83, c. 44, Schedule IX (Treaty)—Applicants submitting Treaty exempting trust from paying capital gains tax in Canada on disposition of company shares because trust resident in Barbados—Act, s. 116, dealing with disposition by non-resident vendors of taxable Canadian property, predating Treaty—Because Treaty silent on interaction between Treaty, Act, s. 116, Treaty paramount; decisions about residence, treaty exempt property to be based solely on language of Treaty—When no tax owing because of tax treaty, Act, s. 116 should not be used to accomplish enforcement, collection objectives—Pending amendments to Act confirming s. 116 not applying to treaty-exempt property—M.N.R. purporting to extend powers beyond those contemplated under Act, s. 116—Applicants entitled to binding ruling from respondent about whether shares treaty exempt property.
Morris v. M.N.R. (T-1899-07, 2009 FC 434, Simpson J., order dated April 29, 2009, 15 pp.)