Bill S-5

1st Session, 39th Parliament,

55 Elizabeth II, 2006

senate of canada

BILL S-5

An Act to implement conventions and protocols concluded between Canada and Finland, Mexico and Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Tax Conventions Implementation Act, 2006.

PART 1

CANADA–FINLAND TAX CONVENTION

2. The Canada–Finland Tax Convention Act, 2006, whose text is as follows and whose schedule is set out in Schedule 1 to this Act, is hereby enacted:

1. This Act may be cited as the Canada–Finland Tax Convention Act, 2006.

2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of Finland set out in the schedule.

3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force.

4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency.

(2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.

5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions.

6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination.

PART 2

CANADA–MEXICO TAX CONVENTION

3. The Canada–Mexico Tax Convention Act, 2006, whose text is as follows and whose Schedules 1 and 2 are set out in Schedule 2 to this Act, is hereby enacted:

1. This Act may be cited as the Canada–Mexico Tax Convention Act, 2006.

2. In this Act, “Convention” means the Convention between the Government of Canada and the Government of the United Mexican States set out in Schedule 1, as amended by the Protocol set out in Schedule 2.

3. The Convention is approved and has the force of law in Canada during the period that the Convention, by its terms, is in force.

4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Convention and the provisions of any other law, the provisions of this Act and the Convention prevail to the extent of the inconsistency.

(2) In the event of any inconsistency between the provisions of the Convention and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.

5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Convention or for giving effect to any of its provisions.

6. The Minister of Finance shall cause a notice of the day on which the Convention enters into force and of the day on which it ceases to have effect to be published in the Canada Gazette within 60 days after its entry into force or termination.

PART 3

CANADA–KOREA TAX CONVENTION

4. Schedule IV to An Act to implement conventions between Canada and Spain, Canada and the Republic of Austria, Canada and Italy, Canada and the Republic of Korea, Canada and the Socialist Republic of Romania and Canada and the Republic of Indonesia and Agreements between Canada and Malaysia, Canada and Jamaica and Canada and Barbados and a convention between Canada and the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation with respect to income tax, chapter 44 of the Statutes of Canada, 1980-81-82-83, is replaced by the Schedule IV set out in Schedule 3 to this Act.

5. For greater certainty, the Convention set out in Schedule IV to the Act, as enacted by chapter 44 of the Statutes of Canada, 1980-81-82-83 (“the 1978 Convention”), ceases to apply in accordance with Article 28 of the Convention set out in Schedule 3 to this Act (“the 2006 Convention”).

6. (1) Within 60 days after the day on which the 2006 Convention enters into force, the Minister of Finance shall cause to be published in the Canada Gazette a notice of the day on which the 2006 Convention enters into force and of the day on which the 1978 Convention terminates.

(2) For greater certainty, the notification referred to in subsection (1) replaces the notification provided for under section 12 of the Act in respect of the coming into force of the 2006 Convention and of the day on which the 1978 Convention ceases to be effective.