Employer Health Tax Act

Table of Contents

Employer Health Tax Act
Total Ontario Remuneration
Cases(1)
Subsection 1(2)
Permanent Establishment
Cases(1)

Total Ontario Remuneration

Cases

Progressive Packaging Ltd. v. Minister of Finance (Ontario), [1998] OJ No. 4798 (Ct. J. (GD)), briefly aff'd [1999] OJ No. 3613 (CA)

The appellant, which was an Ontario resident corporation with an Ontario head office, an Ontario permanent establishment and no permanent establishment in the United States, paid the remuneration of U.S. employees who provided services to it exclusively in the United States. LaForme J. found that the definition of total Ontario remuneration was unambiguous and included remuneration paid to all employees of an employer who are not required to report for work at a permanent establishment of the employer but whose remuneration is paid from a permanent establishment of the employer in Ontario, with the result that the amounts paid to the U.S. employees were subject to the health tax.

Subsection 1(2)

Permanent Establishment

Cases

Toronto Blue Jays Baseball Club v. Minister of Finance (Ontario), 2005 DTC 5360 (Ont. CA)

locker and coach's room used in away games were not a PE

The respondents, which owned and operated professional baseball, hockey and basketball teams were found not to have permanent establishments outside Ontario in respect of the locker rooms and coaches rooms occupied by them while playing in venues outside Ontario. McMurtry C.J.O. stated (at p. 5364) that the "teams' connection with non-Ontario venues and the control of these venues is relatively so transitory that they cannot be considered to be fixed places of business". Furthermore, the equipment transported by the teams to the non-Ontario playing venues was not substantial enough to qualify as "substantial machinery or equipment" under clause (e) of the definition of "permanent establishment".

Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 400 - Subsection 400(2) other teams' facilities used in "away" games were not PEs 108

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