1. Alberta -

1. Alberta

Alberta defines a “permanent establishment” as a fixed place of business of the corporation. This specifically includes an office, a branch, a mine, an oil well, a farm, timber land, a factory, a workshop or a warehouse. The following series of rules is provided:

  • if the corporation does not have a fixed place of business it means the principal place in which the corporation’s business is conducted;
  • if a corporation carries on business through an employee or agent established in a particular place, who has general authority to contract for the employer or principal or who has a stock of merchandise owned by the employer or principal from which the employee or agent regularly fills orders that the employee or agent receives, the corporation is deemed to have a permanent establishment in that place;
  • an insurance corporation is deemed to have a permanent establishment in each province and country in which the corporation is registered or licensed to do business;
  • if a corporation, otherwise having a permanent establishment in Canada, owns land in a province, that land is deemed to be a permanent establishment;
  • if a corporation uses substantial machinery or equipment in a particular place at any time in a taxation year, it is deemed to have a permanent establishment in that place;
  • the fact that a corporation has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the corporation has a permanent establishment;
  • the fact that a corporation has a subsidiary controlled corporation in a place or a subsidiary controlled corporation engaged in trade or business in a place shall not of itself be held to mean that the corporation is operating a permanent establishment in that place; and
  • if a corporation resident in Canada does not otherwise have a permanent establishment in Canada, the corporation is deemed to have a permanent establishment in the place where it has its registered office or in a place designated in its articles, charter or by-laws as its office or registered office.

 ‹ A. Provincial permanent establishments up

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