If there is a conflict between an international tax treaty and Canadian tax legislation, the Canadian tax legislation will prevail.

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In Canada, if there is a conflict between an international tax treaty and Canadian tax legislation, the international tax treaty will generally prevail over Canadian tax legislation. Canada has a legal obligation to adhere to its treaty obligations and to interpret its domestic tax laws in a manner consistent with those obligations. However, there may be circumstances where Canadian tax legislation takes precedence over an international tax treaty, such as when the treaty provision conflicts with the Canadian Charter of Rights and Freedoms or other Canadian laws.

If There Is a Conflict Between an International Tax Treaty