The Tax Court of Canada gave its decision on 22 April 2008 in the case of Prévost Car Inc. v. Her Majesty the Queen (2008TCC231). Associate Chief Justice the Hon. Gerald J. Rip decided that a company established in the Netherlands was the beneficial owner of dividends paid by its wholly-owned Canadian subsidiary under Art. 10(2) of the  Canada-Netherlands treaty. The Crown's argument that the company was not the beneficial owner was based on the facts and circumstances surrounding the payment of dividends, including the lack of substance in the Netherlands company and an agreement between its two parent companies,...