Protocol Amending the Agreement Between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, Done at Bridgetown on 22 January 1980
This electronic version of the Protocol Amending the Canada-Barbados Tax Agreement signed on November 8, 2011, is provided for convenience of reference only and has no official sanction.
THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF BARBADOS,
DESIRING to conclude a Protocol amending the Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, done at Bridgetown on 22 January 1980 (hereinafter referred to as “the Agreement”),
HAVE AGREED as follows:
- “3. Where a company is a national of a Contracting State and by reason of paragraph 1 a resident of both Contracting States then that company shall be deemed to be a resident only of the first-mentioned State.
- 4. Where by reason of the provisions of paragraph 1 a person other than an individual or a company described in paragraph 3 is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle the question and to determine the mode of application of this Agreement to such person. In the absence of such agreement, such person shall not be entitled to claim any relief or exemption from tax provided by this Agreement.”
- “5. The provisions of paragraph 4 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property, other than property to which the provisions of paragraph 6 apply, derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the six years immediately preceding the alienation of the property.
- 6. Where an individual who ceases to be a resident of a Contracting State, and immediately thereafter becomes a resident of the other Contracting State, is treated for the purposes of taxation in the first-mentioned State as having alienated a property (in this paragraph referred to as the “deemed alienation”) and is taxed in that State by reason thereof, the individual may elect to be treated for purposes of taxation in the other State as if the individual had, immediately before becoming a resident of that State, sold and repurchased the property for an amount equal to the lesser of its fair market value at the time of the deemed alienation and the amount the individual elects, at the time of the actual alienation of the property, to be the proceeds of disposition in the first-mentioned State in respect of the deemed alienation. However, this provision shall not apply to property any gain from which, arising immediately before the individual became a resident of that other State, may be taxed in that other State nor to immovable property situated in a third State.”
2. Paragraph 4 of Article XXV of the Agreement shall be deleted.
- “2. Nothing in this Agreement 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 company, partnership, trust, or other entity, in which that resident has an interest.”
- “5. Where under any provision of this Agreement any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect of that income, is subject to tax by reference to the amount thereof that is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under this Agreement in the first-mentioned Contracting State shall apply only to so much of the income as is taxed in the other Contracting State.”
- (a) the first day of January in the calendar year next following that in which this Protocol enters into force; and
- (b) January 1, 2012.
3. Notwithstanding the provisions of this Article, the provisions of Article 4 of this Protocol (Exchange of Information) shall have effect from the date of entry into force of this Protocol, without regard to the taxation year to which a request for information relates.
IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Protocol.
DONE in duplicate at Bridgetown, this 8th day of November 2011, in the English and French languages, both texts being equally authentic.
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