Vol. 148, No. 14 — July 2, 2014

Registration

SI/2014-56 July 2, 2014

AN ACT TO IMPLEMENT CONVENTIONS FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO INCOME TAX BETWEEN CANADA AND FRANCE, CANADA AND BELGIUM AND CANADA AND ISRAEL

Proclamation Giving Notice that the Protocol Amending the Convention between the Government of Canada and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital signed on May 2, 1975, as amended by the Protocol signed on January 16, 1987 and as further amended by the Protocol signed on November 30, 1995 Came into Force on December 27, 2013

DAVID JOHNSTON

[L.S.]

Canada

ELIZABETH THE SECOND, by the Grace of God of the United Kingdom, Canada and Her other Realms and Territories QUEEN, Head of the Commonwealth, Defender of the Faith.

TO ALL TO WHOM these presents shall come or whom the same may in any way concern,

Greeting:

WILLIAM PENTNEY
Deputy Attorney General

A PROCLAMATION

Whereas, by Order in Council P.C. 2014-592 of May 15, 2014, the Governor in Council, pursuant to subsection 10(4) of An Act to implement conventions for the avoidance of double taxation with respect to income tax between Canada and France, Canada and Belgium and Canada and Israel, directed that a proclamation do issue giving notice of the entry into force on December 27, 2013 of the February 2, 2010 supplementary agreement, entitled Protocol Amending the Convention between the Government of Canada and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital signed on May 2, 1975, as amended by the Protocol signed on January 16, 1987 and as further amended by the Protocol signed November 30, 1995;

Now know you that We, by and with the advice of Our Privy Council for Canada, do by this Our proclamation give notice of the entry into force on December 27, 2013 of the attached February 2, 2010 supplementary agreement, entitled Protocol Amending the Convention between the Government of Canada and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital signed on May 2, 1975, as amended by the Protocol signed on January 16, 1987 and as further amended by the Protocol signed November 30, 1995.

Of all which Our loving subjects and all others whom these presents may concern are required to take notice and to govern themselves accordingly.

IN TESTIMONY WHEREOF, We have caused this Our proclamation to be published and the Great Seal of Canada to be affixed to it. WITNESS: Our Right Trusty and Well-beloved David Johnston, Chancellor and Principal Companion of Our Order of Canada, Chancellor and Commander of Our Order of Military Merit, Chancellor and Commander of Our Order of Merit of the Police Forces, Governor General and Commander-in-Chief of Canada.

AT OUR GOVERNMENT HOUSE, in Our City of Ottawa, this third day of June in the year of Our Lord two thousand and fourteen and in the sixty-third year of Our Reign.

By Command,

JOHN KNUBLEY
Deputy Registrar General of Canada

PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE FRENCH REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL SIGNED ON MAY 2, 1975, AS AMENDED BY THE PROTOCOL SIGNED ON JANUARY 16, 1987 AND AS FURTHER AMENDED BY THE PROTOCOL SIGNED NOVEMBER 30, 1995

THE GOVERNMENT OF CANADA

and

THE GOVERNMENT OF THE FRENCH REPUBLIC,

DESIRING to conclude a Protocol to amend further the Convention between the Government of Canada and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, signed on May 2, 1975 as amended by the Protocol signed on January 16, 1987 and as further amended by the Protocol signed November 30, 1995 (hereinafter referred to as “the Convention”),

HAVE AGREED as follows:

ARTICLE I

• 1. Paragraphs 1 and 2 of Article 26 of the Convention shall be deleted and replaced by the following:
• “1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.
• 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or the prosecution in respect of, the determination of appeals in relation to taxes, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.”
• 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
• a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State;
• b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or
• c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
• 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though the other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
• 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because the information relates to ownership interests in a person.

ARTICLE II

Paragraphs 1 and 2 of Article 28 of the Convention shall be deleted and replaced by the following:

• “1. This Convention shall apply, with respect to France, to the European and Overseas Departments (Guadeloupe, Guyane, Martinique and Réunion) of the French Republic, to the Territorial Authority of Saint-Pierre-et-Miquelon as well as to New Caledonia.
• 2. This Convention may be extended, either in its entirety or with any necessary modifications, to any other Overseas Territory of the French Republic which imposes taxes substantially similar in character to those to which the Convention applies. Any such extension shall take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed between the Contracting States in notes to be exchanged through diplomatic channels or in any other manner in accordance with their constitutional procedures.”

ARTICLE III

Each Contracting State shall notify to the other, through diplomatic channel, of the completion of the internal procedures required for the bringing into force of this Protocol. The Protocol shall enter into force on the day on which the later of these notifications is received and its provisions shall apply:

• a) in Canada:
  • (i) in respect of tax withheld at source, for amounts paid or credited to non-residents on or after the first day of January in the calendar year following that in which the Protocol enters into force; and
  • (ii) in respect of other taxes, for any taxation year beginning on or after the first day of January in the calendar year following that in which the Protocol enters into force;
• b) in France:
  • (i) in respect of the withholding taxes, for any amount paid on or after the first day of January in the calendar year following that in which the Protocol enters into force;
  • (ii) in respect of taxes on income which are not levied by way of withholding tax, to income relating to any calendar year or relating to any accounting period beginning on or after the first day of January in the calendar year following that in which the Protocol enters into force; and
  • (iii) in respect of other taxes, to taxable events occurring on or after the first day of January in the calendar year following that in which the Protocol enters into force.
    

ARTICLE IV

• 1. This Protocol shall remain in force as long as the Convention remains in force.
• 2. The Contracting States shall be empowered, after the entry into force of the Protocol, to publish the text of the Convention as amended by the Protocols of January 16, 1987 and November 30, 1995 and by this Protocol.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their respective governments, have signed this Protocol.

DONE in duplicate at Paris, this 2nd day of February 2010, in the English and French languages, both texts being equally authoritative.

MARC LORTIE
FOR THE GOVERNMENT OF CANADA

PHILIPPE GOMES
FOR THE GOVERNMENT OF THE FRENCH REPUBLIC