2 Tax Treaties

carnatic, ambient techno

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Lyrics

[Verse 1]
Across the northern border, treaties span the globe
Bilateral handshakes shake off double tax's robe
When residents of two nations earn their foreign pay
These parchment shields prevent the dreaded double-weigh

[Chorus]
OECD Model guides the way, Vienna shows us how to say
What the words were meant to be, treaty language holds the key
PE means permanent establishment
Three-six-five rule needs assessment
When the business puts down roots
That's when treaty magic shoots

[Verse 2]
Fixed place of business anchored to the ground
Six months of building makes the threshold sound
Dependent agents acting in your name
Transform your presence into taxing game

[Chorus]
OECD Model guides the way, Vienna shows us how to say
What the words were meant to be, treaty language holds the key
PE means permanent establishment
Three-six-five rule needs assessment
When the business puts down roots
That's when treaty magic shoots

[Bridge]
Treaty shopping schemes collapse when PPT arrives
Principal Purpose Test examines who survives
If obtaining benefits was your main design
The treaty door swings shut, no shelter you will find

[Verse 3]
When disputes arise between the taxing lands
MAP procedure offers helping hands
Mutual Agreement solves the clash
Competent authorities prevent the crash

[Chorus]
OECD Model guides the way, Vienna shows us how to say
What the words were meant to be, treaty language holds the key
PE means permanent establishment
Three-six-five rule needs assessment
When the business puts down roots
That's when treaty magic shoots

[Outro]
Bilateral network, worldwide web of rules
Canada's treaties are the trader's tools
From maple leaf to foreign shore
Tax treaties even out the score

← 1 Canada's International Tax Framework | 3 Transfer Pricing →