Article 13 - Capital Gains - Canada

ARTICLE 13 CAPITAL GAINS 1. Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State and movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 2. Gains from the alienation of any property, other than those referred to in paragraph 1 may be taxed in both Contracting States. The following paragraph 4 of Article 9 of the MLI applies to this Agreement: ARTICLE 9 OF THE MLI CAPITAL GAINS FROM ALIENATION OF SHARES OR INTERESTS OF ENTITIES DERIVING THEIR VALUE PRINCIPALLY FROM IMMOVABLE PROPERTY For purposes of [this Agreement], gains derived by a resident of a [Contracting State] from the alienation of shares or comparable interests, such as interests in a partnership or trust, may be taxed in the other [Contracting State] if, at any time during the 365 days preceding the alienation, these shares or comparable interests derived more than 50 per cent of their value directly or indirectly from immovable property (real property) situated in that other [Contracting State].