Canada-USA Tax Treaty

This in-depth module equips CPA professionals with the technical knowledge and interpretive skills needed to navigate and apply the Canada–U.S. Tax Treaty in cross-border tax planning and compliance. It begins with a foundation in the treaty’s legal structure and interpretive context, including its alignment with the OECD and U.S. Model Conventions and the Vienna Convention on the Law of Treaties. The module examines key treaty provisions impacting individuals and corporations—such as residency tie-breakers, business profits, pensions, dividends, interest, royalties, and capital gains—and clarifies the interplay between treaty rules and domestic Canadian tax law. Participants will gain practical insight into concepts like permanent establishment, limitation on benefits (LOB), and treaty override, as well as the CRA’s and IRS’s administrative positions. The module also addresses treaty-based reporting obligations, forms, and compliance strategies, including NR301/302 and IRS Form 8833. Advanced planning techniques using the treaty to mitigate double taxation, structure U.S. investments, and address dual residency or Subpart F income are covered in detail. By the end, participants will be fully equipped to apply the treaty in advisory, corporate, and individual contexts.