Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
| |
March 22,1990 |
| Mr. K.H. Major |
Provincial and international |
| Chief |
Relations Division |
| Foreign Section |
E.E. Campbell |
| Specialty Rulings Division |
| |
File No. 90M03335 |
Permanent Establishments - Offshore Rigs
You wrote to us concerning the application of the Canada-United States Income Tax Convention and the determination of permanent establishments using the concept that space was available in certain circumstances. The notable example related to drilling rigs, although another case which is under consideration is one involving consultants and space being available in the offices of the hiring party in Canada.
We wrote to Finance for their views on the matter, not so much on the individual cases, as on the principal involved. On the factual situation which we described, being the 24(1) Case, Mr.Short agrees that there is a permanent establishment.
Whether there is sufficient evidence to support such a conclusion in a given case will ultimately be the decision of this Department. The Department of Finance does support the principle as backed up by the OECD Commentaries on this point.
We attach a copy of each of our letter and the reply from Finance.
C. SavageA/DirectorProvincial and International Relations Division
Enclosure
(offshore)EEC/jb File CopySequence FileAuthor's copy Access to Info(2)Reading file
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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