Section 132.1

Subsection 132.1(2)

Administrative Policy

12 March 2013 Ruling Case No. 133588

fixed places of activity of charity each are PEs

Ruling that a charity is resident in two Provinces as it has "fixed places of activity" there, being locations that can be identified with the Charity, over which the Charity exercises control and at which the Charity carries out its on-going charitable activities on a regular and recurring basis.

132.1(3)

Administrative Policy

23 June 2015 Interpretation 144489

federally-incorporated charity resident where office located

A registered charity (the “Association”), which was continued under the Canada Non-for-profit Corporations Act, has an office in Province 1 and one employee working from home in Province 2. The Association works in conjunction with "Members") across the country, and the “Member Agreement,” which was signed by the Association and the Members, outlines the duties, obligations and role of the parties. After ruling that the Association is resident in Province 1 under s. 132.1(3) and s. 2(2) of the New Harmonized Value-added Tax System Regulations, No. 2, CRA noted that s. 132.1(1)(a) did not apply as the Association was federally incorporated, and stated:

The Association's main office is located in [City 1] and would be considered a fixed place of activities as it is a determined location that can be identified with the Association, and the Association exercises control over that office and carries out its on-going charitable activities through that office on a regular and recurring basis. At the same time, the premises of the Members cannot be considered as fixed places of activities of the Association since, based on the available information, Members are independent in their daily operations, [and] separate legal entities… .

[T]he employee working from…home … does not have an authority to contract on behalf of the Association. Therefore, the home office set up by that employee is not deemed to be a permanent establishment of the Association [under Reg. 400(2)].

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Regulations - New Harmonized Value-Added Tax System Regulations, No. 2 - Subsection 2(2) federally-incorporated charity resident where office located 21