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Canada Ratifies Administrative Assistance Multilateral Tax Convention 

Global Tax Adviser

 

November 26, 2013

 

Julia Clarkson
Ottawa, East

 

Alexandre Mercier
Montreal, Transfer Pricing

 

Canada ratified the Convention on Mutual Administrative Assistance in Tax Matters on November 21, 2013. This multilateral tax convention, open to all countries, is intended to improve international tax co-operation between the taxation authorities of participating countries to combat international tax avoidance and evasion. In Canada, the convention will enter into force on March 1, 2014, and will have effect as stipulated under Article 28 of the convention.

Background
Canada signed the original Convention on Mutual Administrative Assistance in Tax Matters on April 28, 2004 and the Protocol on November 3, 2011. This multilateral tax treaty, which was developed jointly by the Organisation for Economic Co-operation and Development and the Council of Europe, provides for administrative co-operation between states including the U.S. in the assessment and collection of taxes. The convention applies to Canadian taxes that fall under the Income Tax Act, Excise Tax Act, and the Excise Act, 2001.

 

Treaty
Under the convention, Canada will exchange tax information with other participating countries according to the OECD standard. Canada will not be obligated to collect taxes on behalf of another country, or provide assistance in the service of related documents. Canada will instead continue to negotiate a provision on assistance in the collection of taxes on a bilateral basis, and has agreed to include such a provision in certain of its bilateral tax treaties.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to November 26, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500