In an interesting decision the TCC decided that "properly interpreted and applied in context in a manner to achieve its intended object and purpose, the US Treaty’s favourable tax rate reductions apply for years prior to the Fifth Protocol Amendments to the Canadian‑sourced income of a US LLC if all of that income is fully and comprehensively taxed by the US to the members of the LLC resident in the US on the same basis as had the income been earned directly by those members".
The treaty was changed because both governments fully believed that it didn't apply to LLCs - now, the courts apparently aren't as sure.
