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.
Principal Issues:
Whether "office" in 206(1.1)(d)(i) & (ii) includes a registered office as required under a corporation's constating documents.
Position:
Yes.
Reasons:
"Office" takes on ordinary meaning and purpose of provision is to ensure (along with minimum # of full-time employees or minimum expenditure on Canadian services) a Canadian presence. Physical address for notice or service constitutes the necessary Canadian connection in context of paragraph (d) tests.
XXXXXXXXXX 963423
Attention: XXXXXXXXXX
October 17, 1996
Re: Meaning of "Office"
This is in reply to your facsimile transmission of October 15, 1996, in which you ask us to interpret the above-noted word as used in proposed subparagraphs 206(1.1)(d)(i) and (ii). The proposed addition to the Income Tax Act was announced by the Notice Of Ways and Means Motion of June 20, 1996 and reads as follows:
(i)either
(a)the corporation is required under the laws by or under which it was incorporated or continued to maintain an office in Canada, or
(b)where the corporation was not required under the laws by or under which it was incorporated or continued to maintain an office, the maintenance of an office in Canada is required under the constitutional documents of the corporation,
(ii)the corporation maintains an office in Canada
You ask us to confirm that such an "office" includes a registered office which a corporation is required to have under its constating documents such as its Articles of Incorporation. As you explain, such a registered office could be the office of the corporation's Canadian lawyer and for purposes of your request you ask us to assume that the corporation has no other office and no employees in Canada.
We confirm that in our view a registered office of a corporation is an "office" for purposes of the above-noted proposed legislation. Please note that the foregoing comments are not binding on the Department but we trust they assist.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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