Federal Appeal


Income tax

Foreign income

State of residence was entitled to tax pension income arising in another state

Taxpayer received pension from Columbia since 2014. Taxpayer filed his income tax returns in 2014 and 2015, in which he reported receiving Columbian pension amounts but claimed deductions from income equal to Columbian pension income. Minister denied deductions claimed on basis that pension income was taxable in Canada and taxpayer unsuccessfully appealed. Tax court concluded that Article 17(1) of Canada-Columbia Tax Convention Act entitled Canada, as country of residence, to tax taxpayer’s Columbian pension benefits. Taxpayer appealed. Appeal dismissed. Wording of Article 17(1) of Convention was clear in that state of residence was entitled to tax pension income arising in another state. Accused referred to documentation like International Covenant on Economic, Social and Cultural Rights but Covenant did not deal with taxpayer per se, and it could not have any impact on interpretation of Convention adopted by tax court considering specific issues before it.

Reyes v. Canada (2019), 2019 CarswellNat 37, 2019 FCA 7, Johanne Gauthier J.A., David Stratas J.A., and D.G. Near J.A. (F.C.A.).

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