CRA indicates that a taxpayer can make representations at the first level of the process for resolving inter-provincial income allocation issues

When asked to comment on the interprovincial arbitration process for resolving disputes (e.g., as to the presence of a provincial permanent establishment) between Canada (acting for the eight agreeing provinces), and Quebec and Alberta, respecting the allocation of taxable income of a corporation between the provinces, CRA noted that the Memorandum of Understanding to Avoid Corporate Double Taxation signed by the CRA, Alberta and Quebec contemplated an arbitration process that went through four levels, up to referral to the relevant Deputy Commissioner and Assistant Deputy Ministers.

The taxpayer can present its position during the first level of this Protocol. CRA also noted that where an agreement was reached between Canada and Alberta and/or Quebec, the provinces represented by CRA were bound.

Neal Armstrong. Summary of 7 October 2020 APFF Roundtable Q. 12, 2020-0852241C6 F under Reg. 400.