New Publication from Library of Parliament on Canada-U.S. Tax Treaty

The Parliamentary Information and Research Service of the Library of Parliament recently posted a brief research paper from late March entitled Income Tax Conventions and the Taxation of Non-resident Investment Income Under the Canada-United States Tax Treaty:

"Canada is a signatory to a large number of bilateral income tax conventions. For many Canadian businesses and individuals, the most important of those conventions is the tax treaty between Canada and the United States, which is currently under renegotiation. In recent years, the United States has agreed to significant tax treaty modifications with such trading partners as the United Kingdom, Japan, and Mexico and, as a consequence, the payment of cross-border dividends by a subsidiary to its parent company is exempt from withholding tax. In some instances, these modifications have also eliminated or reduced withholding taxes on interest payments between unrelated parties ... In Canada, several business groups and tax experts have argued that similar changes should be implemented in the changes to the Canada–United States income tax convention that are currently under negotiation."