CRA finds that where a UK company remotely operated crypto-mining equipment located on a Canadian host company’s premises, the equipment constituted a Canadian PE

Hostco owned Canadian real estate that it used to host crypto-mining equipment owned (or leased) by a UK company (UKco), along with providing related services such as internet access and maintenance. UKco employees located exclusively in the U.K. could direct the use of the mining equipment remotely through the use of software.

CRA indicated that, here, the relevant factors seemed to suggest that the business was being carried on in Canada through a permanent establishment and that, in particular, it was carried on wholly or predominantly through operating the crypto-mining equipment, which was at UKco's disposal and was situate in Canada.

Neal Armstrong. Summary of 29 November 2022 CTF Roundtable, Q.7 under Treaties – Income Tax Conventions – Art. 5.