News Update

Canada Supports U.S. Technical Explanation of the Fifth Protocol to the Canada-United States Income Tax Convention

The Honourable Jim Flaherty, Minister of Finance, indicated Canadian agreement with the United States Treasury Departmentís Technical Explanation to the Fifth Protocol to the Canada-United States Tax Convention. Canada ratified the Protocol on December 14, 2007, when Bill S-2 received Royal Assent. 

It is the usual practice of the U.S. Treasury Department to prepare a technical explanation of tax treaties and protocols subject to formal ratification. While it is not customary for Canada to issue such an explanation, Canada was given an opportunity to review and comment on the U.S. document. The Minister indicated that Canada agrees that the Technical Explanation accurately reflects understandings reached in the course of negotiations with respect to the interpretation and application of the various provisions in the Protocol.