CRA considers that a non-resident can be considered to be carrying on business in Canada for GST based on its agreement rather than what it ends up doing

A question posed to CRA highlights an anomaly arising under the rule in ETA s. 133, which deems a supply to be made at the time the agreement for the supply is entered into. What if a non-resident enters into an agreement for the sale and installation of a power plan in Canada (which if implemented would clearly entail carrying on business in Canada) and then, before the installation work occurs, enters (along with its Canadian subsidiary) into an amended agreement under which the subsidiary will do all the Canadian installation work?

CRA stated that "the determination of whether a non-resident is carrying on business in Canada is generally made… at the time the non-resident enters into an agreement to make taxable supplies in Canada and those supplies are deemed to be made."

Neal Armstrong. Summary of CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 15. ("Carrying on Business") (available with membership password at http://www.cba.org/CBA/sections_NSCTS/main/GST_HST.aspx), under ETA, s. 133.