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

Federal appeal | Tax | Income tax | Foreign income

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.).

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

From ignored to a nation-to-nation relationship: Jason Madden’s 20 years advocating for Metis rights

Ontario Superior Court of Justice welcomes new judges Colin Stevenson and Gilead Kay

Ontario Superior Court upholds award of costs exceeding the damages in a personal injury case

Ontario Superior Court resolves estate dispute between siblings by passing over a sister as trustee

Erika Chamberlain steps down as dean of Western Law

Ont. CA orders new trial in pedestrian collision case due to unfair bad character evidence

Most Read Articles

Erika Chamberlain steps down as dean of Western Law

Ont. CA orders new trial in pedestrian collision case due to unfair bad character evidence

Ontario Superior Court of Justice welcomes new judges Colin Stevenson and Gilead Kay

From ignored to a nation-to-nation relationship: Jason Madden’s 20 years advocating for Metis rights