In Black v. The Queen (2014 TCC 12), Lord
Conrad Black argued that he was not subject to tax in Canada on
certain income and taxable benefits. Both Lord Black and the CRA
agreed that he was a resident of both Canada and the U.K. in 2002,
and that under Article 4(2)(a) of The Canada-United
Kingdom Income Tax Convention (the "Convention") he
was a "deemed" resident of the U.K. for the purposes of
the Convention.
Lord Black had filed his Canadian tax return for 2002 on the
basis that approx. $800,000 of income from the duties of offices or
employments performed by him in Canada was taxable in Canada.
However, Lord Black did not include certain other remuneration and
benefits totalling $5.1 million in his Canadian income, including
approx. $2.8 million of income from the duties of offices or
employments performed outside Canada, $326,177 of taxable
dividends, $365,564 of shareholder benefits, and $1.3 million of
benefits arising as a result of his use of an airplane
