20 May 1997 GST/HST Interpretation HQR0000296[1] - Non-resident Permanent Establishment and Security Requirement

I refer to my letter of April 25 1997 concerning non-resident Permanent Establishment (P.E.) and changes to the security requirements.

In my letter it was stated that:

With respect to the security issue, the amendment to subsection 240(6) of the Act indicates that effective April 24, 1997, non-resident registrants or non-resident persons who apply to be registered and who make supplies in Canada other than through their own fixed place of business in Canada will be required to post security in an amount satisfactory to the Minister of National Revenue.

Please note that the effective date of the provision is the date of Royal Assent which is March 20, 1997 and not April 24, 1997 as indicated in the letter. I apologize for this oversight.

Roy McKain
Senior Policy Officer
Border Issues Unit
General Operations and Border Issues Division
GST Rulings and Interpretations
Policy and Legislation Branch

GOBI: HQR0000296