Article 4(1) of Canada’s income tax treaties defines a “resident” of a Contracting State to mean a person who is subject to comprehensive tax in that State “by reason of” various criteria, such as domicile, residence, place of management or any other criterion of a similar nature. What does “by reason of” mean? Does it mean that the criteria are necessary conditions of residency, or does it mean merely that the criteria are examples of conditions that could give rise to comprehensive tax?
In an article entitled, Deemed U.S. Corporation not a U.S. Treaty Resident: HRMC v. GE Financial Investments Ltd., Jared Mackey discusses a recent decision of the Court of Appeals for England which explores this issue. The article is published by the Federated Press International Tax Planning journal (Volume XXVIX, No. 1) and can be accessed on Taxnet Pro by Thomson Reuters.
Bennett Jones