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). In Prévost, a Canadian company paid dividends to a Netherlands company. The parties argued that the lower treaty rate of 5% should apply pursuant to Art. 10(2) of the Canda-Netherlands tax treaty. The tax authorities argued that the treaty did not apply as the Netherlands holding company was not the beneficial owner of the dividends. Their position was that the dividends were beneficially owned by the two shareholders of the Netherlands company, who were located...