A Portuguese citizen and Canadian resident disposes of a (capital property) immovable at a gain that is not taxable under Portuguese tax law. After noting that Art. 13 of the Portugal-Canada Convention permitted Canada to tax the gain, CRA noted that the non-discrimination Article (Art. 23) was inapplicable, stating:
[T]his provision provides that the individual could not be subject to Canadian taxation more onerous than that to which a Canadian citizen in the same situation could be subject. The tax treatment available to a Canadian resident individual under the tax legislation of Portugal does not affect the application of the Act and the Canada-Portugal Convention from a Canadian perspective.