Appendix A. Claw Back Provisions in Income Tax Treaties with Canada
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1 Appendix A Claw Back Provisions in Income Tax Treaties with Canada The typical language of the "claw back" provision basically follows one of two standard forms. The more common language is worded as follows: "The provisions of paragraph shall not affect the right of either of the Contracting States to levy, according to its law, a tax on gains from the alienation of any property 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." The less common language is worded as follows: "The provisions of paragraph shall not affect the right of a Contracting State to levy, according to its domestic law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and who (a) (b) possesses the nationality of the first-mentioned State or was a resident thereof for ten years or more prior to the alienation of the property, and was a resident of the first-mentioned State at any time during the five years immediately preceding the alienation of the property." The following is a list of those treaties, as of April 15, 2011, which contains a "claw back" provision. Variations from the more common language are noted as having a limitation, which usually, but not always, follows the language referred to in the preceding paragraph. 1. Austria December 9, 1976 June 15, (6) 5 years Claw back in 1976 treaty 2. Armenia June 29, (6) 6 years 3. Bangladesh February 15, (6) 6 years 4. Barbados January 22, 1980 XIV(5) 5 years
2 Bulgaria March 3, (5) 6 years 6. Colombia November 21, 2008 * 13(6) 6 years 7. Croatia December 9, (6) 6 years 8. Cyprus May 2, (6) 6 years 9. Czech Republic May 25, (7) 6 years 10. Denmark September 17, (6) 6 years 11. Dominican Republic August 6, 1976 XIII(5) 6 years 12. Ecuador June 28, (6) 5 years 13. Estonia June 2, (7) 5 years 14. Finland July 20, (7) 5 years 15. France May 2, 1975 January 16, 1987 November 30, (5) 5 years Claw back in 1975 treaty 16. Gabon November 14, (6) 6 years 17. Germany April 19, (7)(a) 10 years Prior 1981 treaty also contained a claw back 18. Hungary April 15, 1992 May 3, (7) 6 years Claw back in 1992 treaty 19. Iceland June 19, (7) 6 years 20. Indonesia January 16, 1979 April 1, (5) 6 years Claw back in 1979 treaty * Treaty signed but not in force
3 Ireland October 8, (6) 5 years 22. Israel July 21, 1975 XIII(5) 5 years 23. Italy November 17, 1977 March 20, 1989 June 3, 2002 (New treaty) XIII(5) 5 years Claw back in 1977 treaty New treaty signed but not in force. No claw back 24. Ivory Coast June 16, 1983 XIII(6) 6 years 25. Jamaica March 30, 1978 XIV(5) 5 years 26. Kazakhstan September 25, (6) 6 years 27. Kenya April 27, 1983 XIII(5) 10 years 28. Korea September 5, (7) 5 years 29. Kuwait January 28, (6) 5 years 30. Kyrgyzstan June 4, (6) 6 years 31. Latvia April 26, (7) 5 years 32. Lithuania August 29, (7) 5 years 33. Luxembourg September 10, (7) 6 years 34. Malaysia October 15, 1976 XIII(5) 5 years 35. Malta July 25, (6) 6 years 36. Mexico September 12, (7) 6 years 37. Moldova July 4, (6) 6 years 38. Mongolia May 27, (7) 6 years Treaty signed but not in force
4 Morocco December 22, 1975 XIII(5) 5 years 40. Netherlands May 27, 1986 March 4, 1993 August 25, (8) 6 years Claw back in 1986 treaty 41. Norway July 12, (7) 6 years 42. Oman June 30, (6) 5 years 43. Pakistan February 24, 1976 XIII(6) 6 years Prior 1966 treaty did not contain a claw back 44. Peru July 20, (7) 6 years 45. Philippines March 11, 1976 XIII(5) 6 years 46. Poland May 4, (6) 5 years 47. Portugal June 14, 1999 (see Protocol) 13(6) The claw back was dropped in favour of a stepup when Canada's expanded exit tax was enacted into law 48. Romania April 8, (6) 5 years 49. Russia October 5, (6) 6 years 50. Senegal August 2, (6) 5 years 51. Singapore March 6, 1976 XIII(5) 6 years 52. Slovak Republic May 22, (6) 6 years
5 Slovenia September 15, (6) Permits the State to tax gains which accrued while the taxpayer was a resident of such state. 54. South Africa November 27, (6) 6 years 55. Spain November 23, 1976 XIII(5) 5 years 56. Sri Lanka June 23, (5) 6 years 57. Sweden August 27, (6) 6 years 58. Switzerland May 5, (7) 5 years 59. Tanzania December 15, (8) 6 years 60. Thailand April 11, (6) 6 years 61. Tunisia February 10, 1982 XIII(5) 5 years 62. Turkey * July 14, (6) 5 years 63. Ukraine March 4, (6) 5 years Prior 1977 treaty also contained a claw back 64. United Arab Emirates June 9, (6) 5 years * [Treaty signed but not in force]
6 United Kingdom September 8, 1978 April 15, 1980 October 16, 1985 May 7, (9) 6 years Claw back in 1978 treaty Claw back period increased to 6 years and limitation removed by Protocol signed May 7, United States September 26, 1980 June 14, 1983 March 28, 1984 March 17, 1995 July 29, 1997 September 21, 2007 XIII(5) 10 years Claw back in 1980 treaty and amended by 1983 and 2007 Protocols 67. Uzbekistan June 17, (6) 6 years 68. Venezuela July 10, (6) 6 years 69. Vietnam November 14, (4) Shares of a company resident in a State may be taxed in that State 70. Zambia February 16, 1984 XIII(6) 6 years 71. Zimbabwe April 16, (8) 6 years
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