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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
DRAFT
International Fiscal Association 1995 Conference
QUESTION 3
Subsection 95(1) - Investment Business Definition
How will Revenue Canada assess whether a foreign affiliate employs more than 5 employees full time in the active conduct of the business?
Department's Position
Whether or not a foreign affiliate employs more than five full-time employees in the active conduct of its business is a question of fact and in order to make this determination it would be necessary to review all the facts surrounding the particular situation under consideration. Paragraphs 14, 15, and 16 of Interpretation Bulletin IT-73R4 provide guidance on the Department's interpretation of the phrase "five full time employees". Essentially, in order to qualify as a full time employee a person must work a full business day on each working day subject to normal absences due to illness or vacation. Generally, it does not matter what facet of the business the employee is engaged in, provided all of the employee's duties as such are directly related to the active conduct of the business under consideration.
Prepared by: Olli Laurikainen
951455
May 31, 1995
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