17 July 1991 Internal T.I. 911839 F - Indians-Situated on a Reserve

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.

SUBJECT: Indians-Situated on a Reserve:

This is in reply to your memorandum of May 9, 1991 with enclosed returns from

24(1)

Our Comments

Numerous court cases have established that the residence of a corporate employer is the place where the employer exercises control and management. These cases include:

     De Beers Consolidated Mines Limited v. Howe (1906) A.C. 455Unit Construction Co. Ltd. v. Bullock (1959) 3 ALL E.R. 831Sifneos v. M.N.R. 68 DTC 522Zehnder and Co. v. M.N.R. 70 DTC 6064Bedford Overseas Freighter Limited v. M.N.R. 68 DTC 529 and70 DTC 6072.Jacob Pete v. M.N.R. 91 DTC 211

Factors to be considered would include the location of the books and records, where the Directors meet, where day to day management and control is exercised, where major business transactions are carried out, where employee files are maintained and major Personnel and Payroll decisions are made, and where one would sue if legal action were being contemplated.

Finally, we note that representatives of the 24(1) were advised by us in a letter dated May 30, 1988 that "a corporate entity will be considered to reside in the place in which the control and management of the entity is exercised and such a determination will depend upon the relevant facts of each case."

We trust you will find our comments helpful.

for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental     Affairs Branch

copy to:     Assessing and Enquiries Directorate     Attention: J.M Legault, Cumberland Place