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Canadian Tax Court Holds Capital Gain of Dutch Incorporated Company is Taxable in Canada Based on Effective Management and Control

|Treaty Development|Canada-Netherlands
Canada-Netherlands

The Tax Court of Canada recently issued a judgment concerning whether a Dutch incorporated company with Canadian shareholders is considered resident in Canada and, therefore, subject to tax on its capital gains. The case involved a Dutch company, Landbouwbedrijf Backx B.V., which was incorporated in 1997 by two individual shareholders/directors (the Backxes) that owned and operated a dairy far…

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