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.
K1A 0L8
March 5, 1974
XXXX
This is in reply to your letter of January 30 in which you ask for clarification of the Department's views on what comprises a "fixed base".
As indicated in my previous letter of January 24, the term lacks an exact definition and we are guided in its meaning by the draft double taxation convention on income and capital that has been prepared by the Organization for Economic Co-operation and Development. Generally, it is the Department's view that a "fixed base" should be considered to be in the nature of a permanent establishment, that is, a centre of activity of a fixed or permanent character which should be regularly available to the person who is carrying out the activities. Furthermore, the person carrying on the activities should normally be in a position to exert a measure of control over the "fixed base". Unfortunately, I cannot be more exact as to the criteria used to determine what constitutes a "fixed base" because the circumstances may vary so greatly from one case to another.
I am unable to discuss the particular circumstances of XXXX case with you, as that is a confidential matter since it involves a specific individual. However, persons in circumstances similar to those described in the XXXX case would generally not be considered to be operating from a "fixed base" in Canada.
Yours sincerely,
Assistant Deputy Minister (Legislation)
WSH/mls
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© Her Majesty the Queen in Right of Canada, 1974
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© Sa Majesté la Reine du Chef du Canada, 1974
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