Article 16 - Artistes and Athletes

In finding that the taxpayer, who was a U.S. resident who provided radio commentary for each Blue Jays game, was not an artiste or athlete for purposes of Article XVI of the Canada-U.S. Convention, Mogan T.C.J. found that the taxpayer was not a radio artiste but, rather, a very skilful and experienced radio journalist.

Article 12 of the Canada-USSR treaty provided an exemption from Canadian income tax in respect of the personal activities of a USSR athlete exercised in Canada if such income was "derived in respect of two performances and other public performances". When the taxpayer signed a contract with the Winnipeg Jets he was entitled, in addition to a guaranteed salary of U.S.$60,000 per year, to a signing bonus of U.S.$125,000 payable in two installments. The parties agreed that the signing bonus would be exempt only if he was paid for hockey rather than for signing the contract. Bowie TCJ. found that the first installment (which was at issue) was exempt given that the taxpayer was entitled to receive the second installment only if he performed stipulated services and given that the taxpayer considered that all of the money was being paid to him for playing hockey, and not that part of it was paid simply to sign his name.