Canadian Treaty Series
E102398 - CTS 1994 No. 11
PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF ITALY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND FOR THE PREVENTION OF FISCAL EVASION SIGNED AT TORONTO ON 17TH NOVEMBER 1977
The Government of Canada and the Government of Italy, desiring to conclude a Protocol to amend the Convention between the Contracting States for the Avoidance of Double Taxation with respect to Taxes on Income and for the Prevention of Fiscal Evasion, signed at Toronto on 17th November 1977, have agreed as follows:
The following paragraphs are added to Article XVIII of the Convention:
3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, any social security payment arising in one of the Contracting States and paid in a taxable period to an individual who is a resident of the other Contracting State shall be taxable only in the first-mentioned State, provided that the income of the individual for the period that is taxable in the other Contracting State in aggregate, excluding the said social security payments, does not exceed the amount of twenty four thousand Canadian dollars or twenty seven million Italian lire, whichever is the greater. For the purposes of this paragraph, the term "social security payment" means:
(a) in the case of Canada, any pension or benefit paid under the Old Age Security Act; and
(b) in the case of Italy, only such portion of any pension or benefit paid under the social security laws of Italy as is certified by the competent Authority of Italy as the amount necessary to increase such pension or benefit to the minimum amount for the category of pension payable to that individual under those laws.
The competent Authorities of the Contracting States may, if necessary, agree to modify the above-mentioned amounts as a result of monetary or economic developments.
4. Notwithstanding any provision of this Convention, war veterans pensions and allowances arising in a Contracting State and received by a resident of the other Contracting State shall not be taxable in that other State as long as they would not be taxable if received by a resident of the Contracting State in which they arise.
5. Paragraph 1 of this Article shall not apply to pensions dealt with in paragraph 2 hereof.
6. Notwithstanding the provisions of paragraphs 1 and 2, where an individual who is a resident of a Contracting State in a particular taxable period first receives a payment under a pension fund in the other Contracting State that can reasonably be attributed to a pension to which the individual was entitled for any period preceding that particular period, the individual may in each Contracting State elect to treat for the purposes of taxation in each such State such portion as he may elect of the payment relating to all preceding periods as having been paid to and received by him on the last day of the taxable period immediately preceding the particular period and not to have been so paid to and received by him in that particular period.
1. This Protocol shall be ratified and the instruments of ratification shall be exchanged in Rome as soon as possible.
2. This Protocol shall enter into force on the date of the exchange of the instruments of ratification and its provisions shall have effect from the first day of January 1988.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.
DONE in duplicate at Ottawa this 20th day of March1989, in the English, French and Italian languages, each version being equally authentic.
FOR THE GOVERNMENT OF CANADA
Valerio Brigante Colonna Angelini
FOR THE GOVERNMENT OF ITALY