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Abstract: 

This article discusses the practice implications of the taxpayer-friendly decision of the Tax Court of Canada in TD Securities (USA) LLC v. The Queen. The issue was whether a U.S. limited liability company (LLC) was entitled to the benefits of the Canada-U.S. Income Tax Convention with respect to Canadian source income for years 2005 and 2006. The answer to that question depended on whether the LLC was deemed to be resident in the U.S. The Tax Court rejected the position advanced by the Canada Revenue Agency, that U.S. LLCs are corporations but not residents of the U.S. for treaty purposes.

Keywords: TD Securities (USA) LLC v. The Queen, Fifth Protocol, LLCs, Canada-U.S. Income Tax Convention, Canadian source income

Affiliations:  1: Cassels Brock & Blackwell LLP; 2: Cassels Brock & Blackwell LLP.