Policy Forum: The Fifth Protocol to the Canada-US Income Tax Treaty and the 2006 US Model Treaty—How Do They Compare?

The Fifth Protocol to the Canada–US tax treaty, signed in September 2007, represents one of the most significant updates to the cross-border tax framework in decades. In this article, Virginia Davies, Janice McCart, and Willard Taylor compare the protocol with the 2006 US Model Treaty, highlighting key differences in areas such as permanent establishments, business profits, withholding taxes, limitation on benefits, and dispute resolution. Their analysis underscores how the protocol modernizes the Canada–US treaty relationship while also reflecting broader US treaty policy and its gradual shift toward binding arbitration in tax disputes. Read the full article here.