Is a supply of telecommunication services that is not deemed to be made in Canada, deemed to be made outside Canada? For example, a telephone call between persons in Canada and the U.S. is deemed to be supplied in Canada if the "two out of three" rule in s. 142.1 is met (i.e. two of the following are in Canada: place where the call is emitted; where it is received; and the billing location). If under this rule the supply is not deemed to be made in Canada, is it nonetheless deemed to be made in Canada under s. 142(1)(g) if the service is partly performed in Canada? CRA stated:
A supply of a telecommunication service as defined in subsection 123(1) that is not deemed to be made in Canada under section 142.1 is considered to be made outside Canada. Therefore, in the example given, the supply of the telecommunication service that is not deemed to be made in Canada under the relevant two-out-of-three place of supply rule in paragraph 142.1(2)(b) is considered to be made outside Canada. The supply will not be considered to be made in Canada under paragraph 142(1)(g) if the service is partly performed in Canada
