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

Regulations are current to 2015-07-09 and last amended on 2015-07-01. Previous Versions

Bus and Truck Operators

 Notwithstanding subsections 2603(3) and (4), the amount of income that shall be deemed to have been earned in a particular province or country other than Canada by an individual from carrying on the business of transportation of goods or passengers (other than by the operation of a railway, ships or an airline service) is 1/2 of the aggregate of

  • (a) that proportion of his income therefrom for the year that the number of miles travelled by his vehicles in the province or country in the fiscal period ending in the year is of the total number of miles travelled by his vehicles in that period; and

  • (b) that proportion of his income therefrom for the year that the aggregate of salaries and wages paid in the fiscal period ending in the year to employees of the permanent establishment in the province or country is of the aggregate of all salaries and wages paid in that period to employees of the business.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 81(F).

More Than One Business

 Where an individual operates more than one business, the provisions of sections 2603 and 2604 shall be applied in respect of each business and the amount of income for the year from carrying on business earned in a particular province or country in the year is the aggregate of the amounts so determined.

Limitations of Business Income

  •  (1) If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s income for the year that

    • (a) the individual’s income for the year from carrying on business in the particular province or country as otherwise determined

    is of

    • (b) that total.

  • (2) If section 114 of the Act applies in respect of an individual for a taxation year, the following rules apply:

    • (a) the portion of subsection (1) before paragraph (a) is to be read as follows in respect of the individual for the year:

      • 2606. (1) If, in the case of an individual to whom section 2601 applies, the total of the amounts otherwise determined to be the individual’s income for a taxation year from carrying on business that is earned in all provinces and countries other than Canada is greater than the individual’s taxable income for the year, the individual’s income for the year from carrying on business earned in a particular province or country other than Canada is deemed to be that proportion of the individual’s taxable income for the year that

    • (b) for the purpose of this Part, the individual’s income for the year from carrying on a business in any place shall be computed by reference only to the income from that business that is included in computing the individual’s taxable income for the year.

  • (3) For the purposes of sections 2603 to 2605, where an individual’s taxable income for the taxation year is computed in accordance with section 115 of the Act,

    • (a) a reference to a “business” shall be deemed to refer only to a business that was wholly or partly carried on in Canada;

    • (b) a reference to “income for the year from carrying on business” shall be deemed to refer only to income for the year from carrying on a business in Canada, as determined for the purposes of section 115 of the Act;

    • (c) a reference to “salaries and wages paid in the year” shall be deemed to be a reference to salaries and wages paid to employees of his permanent establishments in Canada; and

    • (d) a reference to “total gross revenue for the year” from the business shall be deemed to be a reference to total gross revenue reasonably attributable to his permanent establishments in Canada.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-302, s. 9;
  • SOR/2011-195, s. 8(F).