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Application of the MLI to the Tax Treaty between Japan and Canada

 The MLI enters into force for Japan on January 1, 2019, and for Canada on December 1, 2019.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Canada on August 29, 2019, the MLI applies to the tax treaty between Japan and Canada as described below.

1. Tax treaty covered by the MLI 
    -  “Convention between the Government of Japan and the Government of Canada for the Avoidance of Double
        Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
          Date of signature: [May 7, 1986]
          Date of entry into force: [November 14, 1987]
    -  “Protocol Amending the Convention between the Government of Japan and the Government of Canada for the
        Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
          Date of signature: [February 19, 1999      
          Date of entry into force: [December 14, 2000]

2. Provisions of the MLI applicable to the tax treaty
    -  Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall be
       treated as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty)      
    -  Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will not
       create opportunities for non-taxation or reduced taxation)     
    -  Article 7(1) (Provisions that deny the benefits under the tax treaty where the
       principal purpose or one of the principal purposes of any arrangement or transaction was to obtain those benefits)     
    -  Article 9(4) (Provisions for taxation on capital gains from alienation of shares or interests of entities deriving their
       value principally from immovable property)     
    -  Article 16(1), 2nd sentence (Provisions that provide that a case must be presented for a mutual agreement
       procedure within three years)     
    -  Part VI (Provisions regarding arbitration for resolving a case of taxation not in accordance with the provisions of
       the tax treaty)     
    -  Article 19(12) (Provisions that provide that an unresolved issue arising from the case on which a decision has
       already been rendered by a court or administrative tribunal shall not be submitted to arbitration)     
    -  Article 23(3) (Provisions that require the competent authorities to endeavor to reach mutual agreement for the
       type of arbitration process)     
    -  Article 23(5) (Provisions regarding non-disclosure obligation on the presenters of the case for any information
       received during the course of arbitration proceedings)     
    -  Article 28(2)(a) (Provisions regarding the scope of cases eligible for arbitration)

3. Entry into effect
(a) The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between
     Japan and Canada:
    (i)    with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving 
           rise to such taxes occurs on or after January 1, 2020; and
    (ii)   with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable
           periods beginning on or after June 1, 2020.
(b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to the tax treaty
     between Japan and Canada for a case presented to the competent authority of a Contracting Jurisdiction on
     or after December 1, 2019, except for cases that were not eligible to be presented as of that date under the
     tax treaty between Japan and Canada prior to its modification by the MLI, without regard to the taxable period to
     which the case relates.
(c) Notwithstanding (a) and (b), the provisions of Part VI (Arbitration) shall have effect: 
    (i)    with respect to cases presented to the competent authority of a Contracting Jurisdiction (as described in
           subparagraph a) of paragraph 1 of Article 19 (Mandatory Binding Arbitration)), on or after December 1, 2019;
           and 
    (ii)   with respect to cases presented to the competent authority of a Contracting Jurisdiction prior to December 1,
           2019, on the date when both Contracting Jurisdictions have notified the Depositary that they have reached
           mutual agreement pursuant to paragraph 10 of Article 19 (Mandatory Binding Arbitration), along with
           information regarding the date or dates on which such cases shall be considered to have been presented
           to the competent authority of a Contracting Jurisdiction (as described in subparagraph a) of paragraph 1 of
           Article 19 (Mandatory Binding Arbitration)) according to the terms of that mutual agreement.