They can also agree on the elimination of double taxation in cases not provided for by the convention. 2. With the exception of paragraph 3 of the Convention, nothing should be construed as preventing a State party from preventing its residents (as defined in Article IV (domicile) and, in the case of the United States, its citizens (including a former citizen whose main objective was tax evasion, but only for a period of ten years after such a loss) , and who have opted for treatment as national taxing bodies. as if there was no agreement between the United States and Canada on income and capital taxes. 5. For U.S. taxation purposes, contributions from a U.S. citizen or resident to an organization residing in Canada, which is generally exempt from Canadian tax and who is entitled to deductible contributions in the United States when residing in the United States, are considered charitable contributions; However, these contributions (along with other contributions to a college or university where the citizen or resident or a family member is registered or registered) are not deductible for any fiscal year, as long as they exceed an amount that, by applying the percentage limits of U.S. law with respect to the deductibility of public utility contributions to the income of these citizens or residents , is not deductible. , which occur in Canada. The above sentence should not be interpreted in the sense that in a taxable year, deductions are allowed for charitable contributions greater than the amount allowed by the percentage restrictions imposed by U.S. law with respect to the deductibility of public utility contributions. For the purposes of this paragraph, a company that resides in Canada and is taxable in the United States, as if it were established in the United States, is established in the United States.
(6) For Canadian taxation purposes, donations from a Canadian-based corporation to a U.S.-based organization generally exempt from U.S. tax and which could be considered a Canadian-registered charity, if established or established in Canada, are considered gifts to a registered charity; However, no tax year may be tax-exempt for these donations (except for donations to a university or university where the resident or family member of the resident is registered or registered) as long as this exemption would be greater than the amount available under the Income Tax Act if the resident`s sole income for that year was the resident`s current income. U.S. production. States. The above sentence should not be interpreted in the sense that it authorizes, in a tax year, a tax exemption for donations to registered charities beyond the amount of tax relief authorized by Canadian law with respect to the exemption of gifts from registered charities. This Convention does not affect the tax privileges of diplomatic or consular representatives under the general rules of international law or the provisions of specific agreements.