Tax & TrustsTD Securities (USA) LLC v. The Queen β Crown Does Not Seek AppealPublished: 05/14/2010 As we recently reported, the Tax Court of Canada released its judgment in TD Securities (USA) LLC v. The Queen on April 8, 2010, extending benefits under the Canada-US Income Tax Convention (the "US Treaty") to a limited liability company (the "LLC") established under the laws of the United States. The judgement rejected the long-standing administrative position of the Canada Revenue Agency ("CRA") that a fiscally transparent LLC is not a resident of the US for purposes of the US Treaty and is therefore not entitled to treaty benefits. The period for appealing this decision has now expired, and the Crown did not file an appeal. Therefore, the Tax Court of Canada’s decision is final. This case will be beneficial to taxpayers in respect of its guidance on the interpretation of tax treaties. In addition, as pointed out in our previous bulletin, there is an opportunity for taxpayers who were adversely affected by the CRA policy in respect of LLCs and were denied treaty benefits to apply for refunds of overpaid tax, subject to the strict limitation periods in the Income Tax Act (Canada). The authors would be very pleased to answer any questions regarding the application process and the applicable limitation periods. |