Bill S-5

SUMMARY

The purpose of this enactment is to implement the most recent tax treaties that have been concluded with Finland, Mexico and Korea.

The tax treaties implemented by this enactment reflect Canada’s effort to update Canada’s network of tax treaties. Those treaties are generally patterned on the Model Double Taxation Convention prepared by the Organization for Economic Co-operation and Development.

Tax treaties have two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Since they contain taxation rules that are different from the provisions of the Income Tax Act, they become effective only after an Act giving them precedence over domestic legislation is passed by Parliament. The process is initiated by the tabling of a Bill such as this one.