Tax Conventions Implementation Act, 2006 (S.C. 2006, c. 8)
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Assented to 2006-12-12
Tax Conventions Implementation Act, 2006
S.C. 2006, c. 8
Assented to 2006-12-12
An Act to implement conventions and protocols concluded between Canada and Finland, Mexico and Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income
SUMMARY
The purpose of this enactment is to implement the most recent tax treaties that have been concluded with Finland, Mexico and Korea.
The tax treaties implemented by this enactment reflect Canada’s effort to update Canada’s network of tax treaties. Those treaties are generally patterned on the Model Double Taxation Convention prepared by the Organization for Economic Co-operation and Development.
Tax treaties have two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Since they contain taxation rules that are different from the provisions of the Income Tax Act, they become effective only after an Act giving them precedence over domestic legislation is passed by Parliament. The process is initiated by the tabling of a Bill such as this one.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Tax Conventions Implementation Act, 2006.
PART 1CANADA–FINLAND TAX CONVENTION
2. The Canada–Finland Tax Convention Act, 2006, whose text is as follows and whose schedule is set out in Schedule 1 to this Act, is hereby enacted:
Marginal note:Short title
1. This Act may be cited as the Canada–Finland Tax Convention Act, 2006.
Definition of “Convention”
2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of Finland set out in the schedule.
Marginal note:Convention approved
3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force.
Marginal note:Inconsistent laws — general rule
4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency.
Marginal note:Inconsistent laws — exception
(2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.
Marginal note:Regulations
5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions.
Marginal note:Notification
6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination.
PART 2CANADA–MEXICO TAX CONVENTION
3. The Canada–Mexico Tax Convention Act, 2006, whose text is as follows and whose Schedules 1 and 2 are set out in Schedule 2 to this Act, is hereby enacted:
Marginal note:Short title
1. This Act may be cited as the Canada–Mexico Tax Convention Act, 2006.
Definition of “Convention”
2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of the United Mexican States set out in Schedule 1, as amended by the Protocol set out in Schedule 2.
Marginal note:Convention approved
3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force.
Marginal note:Inconsistent laws — general rule
4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency.
Marginal note:Inconsistent laws — exception
(2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.
Marginal note:Regulations
5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions.
Marginal note:Notification
6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination.
PART 3CANADA–KOREA TAX CONVENTION
4. Schedule IV to An Act to implement conventions between Canada and Spain, Canada and the Republic of Austria, Canada and Italy, Canada and the Republic of Korea, Canada and the Socialist Republic of Romania and Canada and the Republic of Indonesia and Agreements between Canada and Malaysia, Canada and Jamaica and Canada and Barbados and a convention between Canada and the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation with respect to income tax, chapter 44 of the Statutes of Canada, 1980-81-82-83, is replaced by the Schedule IV set out in Schedule 3 to this Act.
5. For greater certainty, the Convention set out in Schedule IV to the Act, as enacted by chapter 44 of the Statutes of Canada, 1980-81-82-83 (“the 1978 Convention”), ceases to apply in accordance with Article 28 of the Convention set out in Schedule 3 to this Act (“the 2006 Convention”).
6. (1) Within 60 days after the day on which the 2006 Convention enters into force, the Minister of Finance shall cause to be published in the Canada Gazette a notice of the day on which the 2006 Convention enters into force and of the day on which the 1978 Convention terminates.
(2) For greater certainty, the notification referred to in subsection (1) replaces the notification provided for under section 12 of the Act in respect of the coming into force of the 2006 Convention and of the day on which the 1978 Convention ceases to be effective.
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