Administrative Policy
7 October 2020 APFF Roundtable Q. 12, 2020-0852241C6 F - CRA role in the interprovincial arbitration process
When asked to comment on the interprovincial arbitration process for resolving disputes (e.g., as to the presence of a provincial permanent...
Subsection 400(1)
Cases
MNR v. Spruce Falls Power and Power Co., 53 DTC 1214, [1953] CTC 325 (SCC)
The "rule is this: that when a tax is imposed on a segment of business whose total operations extend beyond the taxing jurisdiction, the income...
Administrative Policy
8 June 2018 Internal T.I. 2018-0744881I7 - Regulation 403 – allocation of income
Under Regs. 403(1) and (3), a property insurer (or, in this case, a reinsurer) is required to allocate its taxable income to the provinces on the...
Subsection 400(2)
Cases
Inwest Investments Ltd. v. The Queen, 2015 BCSC 1375
The high rate of B.C. corporate income tax was avoided through rolling shares into a Yukon corporation (“Wesbild”), which purported not to...
Sunbeam Corporation (Canada) Ltd. v. MNR, 62 DTC 1390, [1962] CTC 657 (SCC)
The taxpayer, which sold its manufactured electrical appliances to wholesalers throughout the country, was found not to have a permanent...
MNR v. Panther Oil & Grease Manufacturing Co. of Canada Ltd., 61 DTC 1222, [1961] CTC 363 (Ex Ct)
The taxpayer, whose factory in Ontario filled orders for roofing materials and lubricants generated by its sales force in various provinces,...
See Also
Martorelli v. The Queen, 2010 DTC 1156 [at at 3313], 2010 TCC 216 (Informal Procedure)
The taxpayer worked throughout the year at a construction site 50 kilometers away from his home, for which his employer gave him a transportation...
Toronto Blue Jays Baseball Club v. Minister of Finance (Ontario), 2005 DTC 5360 (Ont. CA)
The respondents, which owned and operated professional baseball, hockey and basketball teams were found not to have permanent establishments...
Ivy Real Estate Corp. S.A. v. Deputy Minister of Revenue of Québec, [1989] 2 CTC 39 (Que. C.A.)
The taxpayer, which was a Panamanian company, owned a commercial rental building in Montréal which a real estate management company ("Edgecombe")...
Chicago Blower (Canada) Ltd. v. MNR, 66 DTC 471 (TAB)
Local sales agencies of the taxpayer situate in Toronto and Montreal represented permanent establishments in Ontario and Quebec on the basis of a...
Enterprise Foundry (N.B.) Ltd. v. MNR, 64 DTC 660 (TAB)
The business of the taxpayer ("N.B.") comprised the selling of stoves in Quebec that were manufactured by an affiliated company whose...
Ronson Art Metal Works (Canada) Ltd. v. MNR, 56 DTC 440 (ITAB)
The taxpayer, which employed in Quebec a full-time sales representative who had no stock on hand, who contacted clients and prepared orders and...
Administrative Policy
20 February 2014 External T.I. 2012-0460191E5 - Permanent establishment in a province
In the course of making general comments on the meaning of permanent establishment, CRA quoted from 2011-0395331I7, including the following:
In...
9 May 2013 External T.I. 2012-0435401E5 F - Server as a PE in a province
A Canadian-resident corporation which provided it services through internet sites hosted on servers owned by it and situated in Quebec would have...
29 November 2011 November CTF Roundtable, 2011-0426561C6 - Public Warehouse: PIA
The questioner noted that:
CRA has in [the context of Reg. 400(2)(b)] ascribed an ordinary meaning to the word "agent", [as] being one who is...
20 July 2011 Internal T.I. 2011-0395341I7
a corporation which acted predominantly as a staffing agency did not have a permanent establishment at the client premises where it placed staff. ...
1 March 2010 Internal T.I. 2009-0346951I7 F - Article XVI-Établissement stable-Province
A U.S.-incorporated resident of the U.S. for Treaty purposes (“Non-Resident Corporation”), whose shares were 50% owned by a non-resident...
18 December 2003 External T.I. 2003-0021195 F - Etablissement Stable en Ontario
Regarding whether an office that a Quebec company (Canco) opened in Ontario which Ontario sales employees would use on occasion for meetings and...
17 January 1994 Internal T.I. 9328927 F - Indian - Employment Income
Discussion of factors for determining the location of the permanent establishment of a business carried on by a self-employed Indian.
13 January 1993 T.I. (Tax Window, No. 28, p. 13, ¶2381)
A Canadian corporation whose only business is leasing equipment to franchisees in various provinces and that has no employees in such provinces...
81 C.R. - Q. 27
An oil well of a joint venture is a permanent establishment of the participant corporations.
I.T.-177R2 "Permanent establishment of a corporation in a province and of a foreign enterprise in Canada".
Articles
Tremblay, "Permanent Establishments in Canada", 1989 Conference Report, c. 38.
Paragraph 400(2)(b)
Administrative Policy
7 October 2022 APFF Roundtable Q. 7, 2022-0942731C6 F - Permanent establishment and teleworking
Mr. X, who has been living in Quebec and commuting to the sole permanent establishment of his employer in Quebec, from which he receives his...
18 December 2003 External T.I. 2003-0021195 F - Etablissement Stable en Ontario
A Quebec company (Canco) opened an office in Ontario which Ontario sales employees would use on occasion for meetings and calls but with no...
Income Tax Technical News, No. 2, December 30, 1994
Even if a corporation carries on business in a province through a commission agent, broker or other independent agent, Regulation 400(2)(b) may...
4 September 1990 Memorandum (Tax Window, Prelim. No. 1, p. 22, ¶1011)
Where a corporation keeps merchandise in a public warehouse on terms which require the warehouse to deliver possession of the merchandise at the...
Paragraph 400(2)(e)
Administrative Policy
12 June 2014 Ruling 133588r [30 continuous-days test for use of substantial equipment]
The Charity, which was incorporated in Participating Province X, was found not to have a permanent establishment in Participating Province Y,...
16 April 2010 Internal T.I. 2010-0362601I7 F - Établissement stable-Province
A non-resident corporation claimed a deduction under subsection 124(1) of the Income Tax Act (the "Act") for its XXXXXXXXXX taxation year. In...
1 March 2010 Internal T.I. 2009-0346951I7 F - Article XVI-Établissement stable-Province
A U.S.-incorporated resident of the U.S. for Treaty purposes (“Non-Resident Corporation”), whose shares were 50% owned by a non-resident...
21 November 2003 External T.I. 2003-0010195 F - Etablissement Stable
A corporation with its head office in the province of Quebec uses 10 sets of equipment, each of which includes a truck and equipment. Although...