Protocol to the 1942 Treaty (1966)

PROTOCOL TO THE 1942 TREATY (1966)
Date of Conclusion: 25 October 1966.

Entry into Force: 20 December 1967.

Effective Date: 20 December 1967 (see Article II).

Termination Date: 1 January 1985.
SUPPLEMENTARY CONVENTION BETWEEN
CANADA AND THE UNITED STATES OF AMERICA
FURTHER MODIFYING AND SUPPLEMENTING
THE CONVENTION AND ACCOMPANYING PROTOCOL OF MARCH 4, 1942
FOR THE AVOIDANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVASION IN THE CASE OF INCOME TAXES
AS MODIFIED BY THE SUPPLEMENTARY CONVENTION OF JUNE 12, 1950 AND
THE SUPPLEMENTARY CONVENTION OF AUGUST 8, 1956
Article I

The provisions of the Convention and Protocol between Canada and the United States of America, signed at Washington on March 4, 1942, as modified by the Supplementary Convention of June 12, 1950, and the Supplementary Convention of August 8, 1956, are hereby further modified by adding to Article XI thereof the following new paragraph:

“6. Paragraph 1 of this Article shall not apply in respect of income derived from sources in one of the Contracting States and paid to a corporation organized under the laws of the other Contracting State if such corporation is not subject to tax by the last-mentioned Contracting State on that income because it is not a resident of the last-mentioned Contracting State for purposes of its income tax.”
Article II

  1. This Supplementary Convention is done in the English and French languages, each version being equally authentic. It shall be ratified and the instruments of ratification shall be exchanged at Ottawa as soon as possible.
  2. This Supplementary Convention shall come into force on the date on which instruments of ratification are exchanged and shall thereupon have effect with respect to income paid on or after

(a) January 1, 1967, or

(b) the date on which the instruments of ratification are exchanged,

whichever is the later. It shall continue in force indefinitely as though it were an integral part of the Convention of March 4, 1942, as modified by the Supplementary Convention of June 12, 1950, and the Supplementary Convention of August 8, 1956.

In witness whereof the undersigned, duly authorized thereto, have signed this Supplementary Convention.

Done in duplicate, in the English and French languages, at Washington this 25th day of October, 1966.