A registered charity (the “Association”), which was continued under the Canada Non-for-profit Corporations Act, has an office in Province 1 and one employee working from home in Province 2. The Association works in conjunction with "Members") across the country, and the “Member Agreement,” which was signed by the Association and the Members, outlines the duties, obligations and role of the parties. After ruling that the Association is resident in Province 1 under s. 132.1(3) and s. 2(2) of the New Harmonized Value-added Tax System Regulations, No. 2, CRA noted that s. 132.1(1)(a) did not apply as the Association was federally incorporated, and stated:
The Association's main office is located in [City 1] and would be considered a fixed place of activities as it is a determined location that can be identified with the Association, and the Association exercises control over that office and carries out its on-going charitable activities through that office on a regular and recurring basis. At the same time, the premises of the Members cannot be considered as fixed places of activities of the Association since, based on the available information, Members are independent in their daily operations, [and] separate legal entities… .
[T]he employee working from…home … does not have an authority to contract on behalf of the Association. Therefore, the home office set up by that employee is not deemed to be a permanent establishment of the Association [under Reg. 400(2)].
