Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Income Tax Regulations

Version of section 5906 from 2009-03-12 to 2013-06-25:

  •  (1) For the purposes of this Part, where a foreign affiliate of a corporation resident in Canada carries on an active business, it shall be deemed to carry on that business

    • (a) in a country other than Canada only to the extent that such business is carried on through a permanent establishment situated therein; and

    • (b) in Canada only to the extent that its income therefrom is subject to tax under Part I of the Act.

  • (2) For the purposes of subsection (1), the expression “permanent establishment” has:

    • (a) if the expression is given a particular meaning in a tax treaty with a country, the meaning assigned by that tax treaty with respect to a business carried on in that country; and

    • (b) in any other case, the meaning that would be assigned by subsection 400(2) if that subsection were read without reference to its paragraph (e.1).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/94-686, s. 79(F)
  • 2009, c. 2, s. 111

Date modified: