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.
March 22, 1990
Mr. K.H. Major Provincial and
International
Chief Relations Division
Foreign Section E.E. Campbell
Specialty Rulings Division
Permanent Establishments - Offshore Rigs
You wrote to us concerning the application of the Canada-United States Income Tax Convention and the determination of permanent establishments using the concept that space was available in certain circumstances. The notable example related to drilling rigs, although another case which is under consideration is one involving consultants and space being available in the offices of the hiring party in Canada.
We wrote to Finance for their views on the matter, not so much on
the individual cases, as on the principal involved. On the
factual situation which we described, being the 24(1)
Case, Mr. Short agrees that there is a permanent establishment.
Whether there is sufficient evidence to support such a conclusion in a given case will ultimately be the decision of this Department. The Department of Finance does support the principle as backed up by the OECD Commentaries on this point.
We attach a copy of each of our letter and the reply from Finance.
C. Savage
A/Director
Provincial and International
Relations Division
Enclosure
Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1990
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1990
Email this Content