In Prévost Car Inc. v. The Queen, the Federal Court of Appeal dismissed the Minister of National Revenue’s appeal from the Tax Court’s decision that the Canadian corporate taxpayer’s parent, a Dutch holding company, was the “beneficial owner” of dividends which entitled it to a reduction in the 25% rate of Canadian non-resident withholding tax to 5% under Article 10(2) of the Canada- Netherlands Income Tax Convention (the “Treaty”).

type Tax Law Bulletin - March 2009 - Prévost Car: Dutch Intermediary is "Beneficial Owner” Under Treaty