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Income Tax Act

Version of section 253 from 2004-08-31 to 2013-06-25:


Extended meaning of carrying on business

 For the purposes of this Act, where in a taxation year a person who is a non-resident person or a trust to which Part XII.2 applies

  • (a) produces, grows, mines, creates, manufactures, fabricates, improves, packs, preserves or constructs, in whole or in part, anything in Canada whether or not the person exports that thing without selling it before exportation,

  • (b) solicits orders or offers anything for sale in Canada through an agent or servant, whether the contract or transaction is to be completed inside or outside Canada or partly in and partly outside Canada, or

  • (c) disposes of

    • (i) Canadian resource property, except where an amount in respect of the disposition is included under paragraph 66.2(1)(a) or 66.4(1)(a),

    • (ii) property (other than depreciable property) that is a timber resource property or an interest therein or option in respect thereof, or

    • (iii) property (other than capital property) that is real property situated in Canada, including an interest therein or option in respect thereof, whether or not the property is in existence,

the person shall be deemed, in respect of the activity or disposition, to have been carrying on business in Canada in the year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 253
  • 1994, c. 7, Sch. II, s. 197

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