Hunter Douglas Ltd. v. The Queen, 79 DTC 5340, [1979] CTC 424 (FCTD) -- summary under Article 10

A Canadian company shifted its central management and control to the Netherlands, thereby becoming a resident of the Netherlands for purposes of the 1957 Canada-Netherlands Convention, and then paid a stock dividend to its shareholders. Since paragraph IV(5) provided that where a Netherlands resident company derived income from within the other State (Canada) "that other State shall not impose any form of taxation on dividends paid by the company to persons not resident in that other State", it was held that shareholders of the company who were not resident in either Canada or the Netherlands, in addition to resident Netherlands shareholders, were entitled to the exemption. It was noted that the Crown's contention, that the exemption did not apply to third-country residents, would lead to double-taxation of such shareholders by Canada and the Netherlands and "such a result would be contrary to the purpose of all of Canada's 32 international treaties."