Ch. 41 - Tax Treaties

Question 1

Tax Treaties - main purpose

Answer 1

to avoid double taxation and to prevent tax evasion

Question 2

Tax Treaties - eliminate double taxation by

Answer 2

1. specifying each countries right to tax or not tax particular types of income; and/or
2. requiring one of the countries to grant tax credits for tax already paid on the income

Question 3

Tax Treaties Vs Income Tax Act

Answer 3

Tax treaties override the ITA