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
This electronic version of the Protocol Amending the Canada-France Tax Convention signed on February 2, 2010, is provided for convenience of reference only and has no official sanction.
THE GOVERNMENT OF CANADA
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:
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."
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."
1. Each Contracting State shall notify to the other, through diplomatic channel, of the completion of the 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.
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.
Canadian Ambassador to France
FOR THE GOVERNMENT OF CANADA
President of the Government of New Caledonia
FOR THE GOVERNMENT OF THE FRENCH REPUBLIC