Canada–Madagascar Tax Convention Act, 2018 (S.C. 2019, c. 7)
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Assented to 2019-05-27
Canada–Madagascar Tax Convention Act, 2018
S.C. 2019, c. 7
Assented to 2019-05-27
An Act to implement the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income
SUMMARY
This enactment implements the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and a related protocol.
The convention is generally patterned on the Model Tax Convention on Income and on Capital developed by the Organisation for Economic Co-operation and Development (OECD).
The convention has two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Once implemented, it will provide relief from taxation rules set out in, or related to, the Income Tax Act. That implementation requires the enactment of this Act.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Marginal note:Short title
1 This Act may be cited as the Canada–Madagascar Tax Convention Act, 2018.
Marginal note:Definition of Convention
2 In this Act, Convention means the Convention between Canada and the Republic of Madagascar set out in Schedule 1, as amended by the Protocol set out in Schedule 2.
Marginal note:Convention approved
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.
Marginal note:Inconsistent laws — general rule
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.
Marginal note:Inconsistent laws — exception
(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.
Marginal note:Regulations
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.
Marginal note:Notifications
6 The Minister of Finance must cause to be published in the Canada Gazette
(a) on or before the 60th day following the day on which the Convention enters into force, a notice of the day on which the Convention entered into force; and
(b) on or before the 60th day following the day on which an event causing the Convention to cease to have effect occurs, a notice of the event and the day on which it occurred and of the Convention ceasing to have effect.
SCHEDULE 2(Section 2)Protocol
At the moment of signing the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention:
1 It is understood that, for the purposes of the Convention, the term “head office of the enterprise” signifies, in the case of Canada, the place of incorporation of the enterprise.
2 It is understood that nothing in the Convention shall be construed as preventing Canada from imposing a tax on amounts included in the income of a resident of Canada with respect to a partnership, trust, or controlled foreign affiliate, in which that resident has an interest.
IN WITNESS WHEREOF the undersigned, duly authorized to that effect by their respective Government, have signed this Protocol.
DONE in duplicate at Antananarivo, this 24th day of November 2016, in the English and French languages, each version being equally authentic.
FOR CANADA
FOR THE REPUBLIC OF MADAGASCAR
SCHEDULE 2(Section 2)Protocol
At the moment of signing the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention:
1 It is understood that, for the purposes of the Convention, the term “head office of the enterprise” signifies, in the case of Canada, the place of incorporation of the enterprise.
2 It is understood that nothing in the Convention shall be construed as preventing Canada from imposing a tax on amounts included in the income of a resident of Canada with respect to a partnership, trust, or controlled foreign affiliate, in which that resident has an interest.
IN WITNESS WHEREOF the undersigned, duly authorized to that effect by their respective Government, have signed this Protocol.
DONE in duplicate at Antananarivo, this 24th day of November 2016, in the English and French languages, each version being equally authentic.
FOR CANADA
FOR THE REPUBLIC OF MADAGASCAR
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