Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2014-09-29 and last amended on 2014-06-19. Previous Versions

 In this Part, “amount taxable” has the meaning assigned by subsection 117(2) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-449, s. 1;
  • SOR/83-757, s. 2;
  • SOR/89-475, s. 2.

PART XXVIINCOME EARNED IN A PROVINCE BY AN INDIVIDUAL

Interpretation

  •  (1) In applying the definition “income earned in the year in a province” in subsection 120(4) of the Act for an individual’s taxation year

    • (a) the prescribed rules referred to in that definition are the rules in this Part; and

    • (b) the amount determined under those prescribed rules means the total of all amounts each of which is the individual’s income earned in the taxation year in a particular province as determined under this Part.

  • (2) In this Part, “permanent establishment” means a fixed place of business of the individual, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse, and

    • (a) where an individual carries on business through an employee or agent, established in a particular place, who has general authority to contract for his employer or principal or who has a stock of merchandise owned by his employer or principal from which he regularly fills orders which he receives, the individual shall be deemed to have a permanent establishment in that place;

    • (b) where an individual uses substantial machinery or equipment in a particular place at any time in a taxation year he shall be deemed to have a permanent establishment in that place; and

    • (c) the fact that an individual 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 individual has a permanent establishment.

  • (3) [Repealed, SOR/81-267, s. 3]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/78-772, s. 3;
  • SOR/81-267, s. 3;
  • SOR/94-686, s. 20(F);
  • 2009, c. 2, s. 103;
  • SOR/2010-93, s. 18(F).

Residents of Canada

  •  (1) If an individual resides in a particular province on the last day of a taxation year and has no income for the taxation year from a business with a permanent establishment outside the province, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year.

  • (2) If an individual resides in a particular province on the last day of a taxation year and has income for the taxation year from a business with a permanent establishment outside the particular province, the individual’s income earned in the taxation year in the particular province is the amount, if any, by which

    • (a) the individual’s income for the taxation year

    exceeds

    • (b) the total of all amounts each of which is the individual’s income for the taxation year from carrying on a business that is earned in a province other than the particular province or in a country other than Canada, determined in accordance with this Part.

  • (3) If an individual, who resides in Canada on the last day of a taxation year and who has carried on business in a particular province at any time in the taxation year, does not reside in the particular province on the last day of the taxation year, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year from carrying on business earned in the particular province, determined in accordance with this Part.

  • (4) If an individual resides in Canada on the last day of a taxation year and carried on business in another country at any time in the taxation year, the individual’s income earned in the taxation year in that other country is the individual’s income for the taxation year from carrying on business earned in the other country, determined in accordance with this Part.

  • (5) In this section, a reference to the “last day of a taxation year” is deemed to be a reference to

    • (a) the “last day in the year on which the individual resided in Canada”, in the case of an individual who resided in Canada at any time in the year but ceased to reside in Canada before the end of the year; and

    • (b) the “day in the year on which the individual would have ceased to reside in Canada, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act,”, in the case of a particular individual described in paragraph 250(1)(d.1) of the Act, or of another individual who is a spouse, common-law partner or child of the particular individual, who

      • (i) was resident in Canada at any time in the year,

      • (ii) would have ceased to be resident in Canada before the end of the year, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act, and

      • (iii) is, pursuant to paragraph 250(1)(d.1) or (f) of the Act, deemed to have been resident in Canada throughout the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-799, s. 1;
  • SOR/2001-188, s. 4;
  • SOR/2007-116, s. 7;
  • SOR/2010-93, s. 19.