Administrative Policy
2015 Ruling 2014-0542411R3 - Carrying on business in Canada and PE
Many of the risks and financial benefits of two large Canadian construction “Projects” will be those of a non-resident company (“ForCo”)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 5 | PE in Canada of ForCo avoided through seconding employees to its Cdn sister and meeting in Canada up to 90 days annually only offsite | 533 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | seconded employees respected as employees notwithstanding their payroll is paid by (and reimbursed to) ForCo | 59 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) | no mark-up on cross-border payroll reimbursement represented to accord with s. 247 | 107 |
Subsection 102(1)
Administrative Policy
CRA Webpage, “Determine the province of employment (POE)” 6 October 2023
Regarding the determination of the location of the establishment of the employer for purposes of applying source deductions pursuant to Reg....
7 October 2022 APFF Roundtable Q. 7, 2022-0942731C6 F - Permanent establishment and teleworking
Mr. X, who while living in Quebec, had been commuting to the sole permanent establishment of his employer in Quebec, from which he was paid, will...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 400 - Subsection 400(2) - Paragraph 400(2)(b) | employer is required to be carrying on business through an employee’s cottage to be considered to have a PE there under Reg. 400(2)(b) | 266 |
| Tax Topics - Treaties - Income Tax Conventions - Article 5 | having an employee, with general authority to contract, telework from his cottage in another province does not necessarily create an employer PE there | 166 |
9 July 2020 Internal T.I. 2020-0854701I7 - Withholdings from CERB/CSB payments
In explaining why the source deduction requirements (including graduated rates) under Reg. 102(1) would apply to Canada emergency response benefit...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 100 - Subsection 100(4) | there is a deemed establishment of a deemed employer of a deemed employee where s. 56(1)(r) government assistance is paid | 185 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(r) | CERB and CESB payments are government assistance | 58 |
27 November 2017 External T.I. 2017-0731441E5 - Interchange Canada and Business Number
Under the proposed Interchange Agreement with a non-resident corporation (“NRCo”) and a non-resident employee of NRCo, the employee will...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) | a non-resident corporation is carrying on business in Canada by virtue of being the legal employer of an employee seconded to Canada | 179 |
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) | NR corp carrying on business in Canada by virtue of being reimbursed for payroll costs of seconded employee | 141 |
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | salary reimbursement payments made to seconding NR employer subject to withholding | 121 |
4 February 2016 Internal T.I. 2015-0620821I7 F - Withholding of income tax at source
What is meant by “reports to work” in Reg. 102(1). CRA responded (TI translation):
Generally, a place of work is not an establishment of an...
16 June 2014 External T.I. 2013-0515431E5 - International traffic and airline enterprise
During peak season, Canco, which transports passengers to destinations inside and outside Canada, is supplied planes and non-resident pilots and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | application of Sutcliffe/Price allocation approach were s. 115(3) not applicable | 150 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(4) | non-resident's provision of crew and aircraft to Canadian airline | 150 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Traffic | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(c) | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Treaties - Income Tax Conventions - Article 15 | U.K company's provision of crew to Canadian airline/Reg. 102 withholding or waiver notwithstanding Treaty exemption | 291 |
22 March 2012 Internal T.I. 2012-0436311I7 - payroll withholdings by non-resident employer
Respecting a query as to whether 2010-0338561I7 applied to an employer who does not directly or indirectly do business in Canada, the Directorate...
18 September 2000 External T.I. 2000-0026805 F - PAIEMENTS DANS LE CADRE D'UN CONGEDIEMENT
After finding that a payment made to a dismissed employee in lieu of reasonable notice was s. 5 employment income rather than a retiring...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | payment in lieu of reasonable notice was s. 5 employment income | 52 |
7 December 1999 Income Tax Severed Letter 1999-0007810 - Application of subsection 17(2)
Although directors fees are salaries and wages for tax purposes and, therefore, are subject to Article XV of the Canada-U.S. Convention rather...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | 57 |
IC75-6R2 "Required Withholding from Amounts Paid to Non-Resident Persons Performing Services in Canada"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | 0 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | 12 |
Articles
Anu Nijhawan, "Source Withholdings: Non Resident Employees 'Visiting' Canada", Taxation of Executive Compensation and Retirement, Vol. 15, No. 9, May 2004, p. 412.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) | 0 |
Forms
R102-J "Regulation 102 Treaty Based Waiver Application - Joint Employer/Employee"
Use this form if you are a non-resident employee seeking...