Words and Phrases - "permanent"

a
86
b
44
c
76
d
50
e
38
f
31
g
18
h
14
i
73
j
2
k
2
l
32
m
56
n
25
o
38
p
80
q
3
r
76
s
89
t
46
u
15
v
9
w
23
y
2

Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021

Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 5

CRA referred to the travel restrictions imposed by governments or businesses in response to the COVID-19 crisis as a safety measure for their citizens or employees (the “Travel Restrictions”) and to the administrative response of CRA (being a concession rather than an interpretive approach) which will apply from March 16 until June 29, 2020, unless extended.

Days if presence in Canada due to COVID-19 Travel restrictions not counted towards PE

  • CRA will not consider a non-resident entity to have a permanent establishment in Canada solely because its employees perform their employment duties in Canada solely as a result of the Travel Restrictions, or to have an "agency" permanent establishment solely due to a dependent agent concluding contracts in Canada where such activities would not have been performed in Canada but for the Travel Restrictions.

Nor towards Services PE

  • Any days of physical presence in Canada due solely to Travel Restrictions will not count towards the 183-day presence test in "services permanent establishment" provision of Canada's treaties (e.g., Art. V(9)(a) of the Canada-U.S. treaty).

VII. Supplemental guidance

B. PE unlikely to arise in Canada solely because of individual's presence there due to COVID travel restrictions

  • The relief in the initial relief period no longer applies regarding whether a non-resident employer has a fixed place of business in Canada. However, CRA considers that for there to be a fixed place of business in Canada, there must be a semblance of permanence to the site, and the site must be at the “disposal” of the employer. An individual’s working remotely (in Canada) from home due to the travel restrictions “will generally not be sufficient to meet the thresholds of a permanent establishment.”
  • Similarly, regarding an “agency” permanent establishment, the individual would not satisfy the requirement of “habitually” exercising a right to conclude contracts on behalf of the non-resident enterprise where the individual “is doing so from Canada solely because of the travel restrictions.”
  • Regarding the services permanent establishment in Art. IV(9) of the Canada-U.S. Treaty, most employees described above would not meet either of the thresholds therein “if they are not working on projects for Canadian customers.”
Words and Phrases
permanent

La Salle Recreations Ltd. v. Canadian Camdex Investments Ltd. (1969), 4 D.L.R. (3d) 549 (B.C.C.A.)

Summary Under
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Real Property
“permanent” is less than forever

McFarlane J found that although the degree of annexation of wall-to-wall carpeting in a hotel was slight, the object of the annexation was the better and more effective use of the building as a hotel and not the better use of the goods as goods, with the result that the carpeting and accessories constituted fixtures. In commenting (at 554-55) on the use of the word “permanent” in Haggert v. Town of Brampton, he stated:

Special attention must be given to the use of the word “permanent” in this context. I note the word is used in contradistinction to “occasional”. When used with reference to affixing or annexing chattels to realty I cannot believe that “permanent”, a relative term, means remaining in the same state and place forever or even for an indefinitely long period of time. Especially must this be so where the chattels being considered are subject to wear and tear through use … In my opinion the word “permanent”, as used by King J. should be interpreted for the purposes of this appeal as indicating the object of having the carpeting remain where it is so long as it serves its purpose.

Words and Phrases
permanent