INCOME TAX |
Exemptions |
Tsukada v. Canada
A-654-99
2002 FCA 241, Rothstein J.A.
29/5/02
5 pp.
Application for judicial review of Tax Court decision dismissing applicant's appeal from assessment making pension income from Japan taxable in Canada--Applicant, resident of Canada, had paid tax on pension income in Japan and arguing under Canada-Japan Income Tax Convention 1986, should not be taxed on that pension income in Canada--Application dismissed--Convention, Art. 20.1 providing income of resident of Canada, wherever arising, shall be taxable only in Canada; Art. 20.3 providing that, notwithstanding Art. 20.1, Japanese income of Canadian resident may be taxed in Japan; Art. 21.1(a) providing that, in order to avoid double taxation, tax payable in Japan shall be deducted from any Canadian tax payable on that income--No possible way in which to interpret Art. 20 as precluding tax on worldwide income of Canadian resident in Canada when tax may also be payable in another country--No basis to argument Art. 21.1(a) should be interpreted so that Canadian tax payable on pension income should be calculated as if pension income applicant's only income in Canada--Japanese income to be treated as any other income under Canadian tax law, subject only to credit being applicable for any taxes paid on that income in Japan--Canada-Japan Income Tax Convention 1986, S.C. 1986, c. 48, Part II, Sch. III, Art. 20, 20.1, 20.3, 21.1(a).