2606 (1) Where, in the case of an individual to whom section 2601 applies, the aggregate of the amounts otherwise determined as his income for the taxation year from carrying on business earned in all provinces and countries other than Canada is greater than his income for the year, his income for the year from carrying on business earned in a particular province or country shall be deemed to be that proportion of his income for the year that
(a) his income for the year from carrying on business in the province or country as otherwise determined,
is of
(b) that aggregate.
(2) Where section 114 of the Act is applicable for the purpose of determining the taxable income of an individual for the taxation year, a reference in subsection (1) to “his income for the taxation year” shall be construed as a reference to the amount of his income as determined for the purposes of section 114 of the Act and, for the purposes of this Part, his income for the taxation year from carrying on a business in any place shall be computed by reference only to a business the income from which is included in computing his taxable income for the purposes of section 114 of the Act.
(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.
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