Overview
The COVID-19 pandemic has created many changes for corporate
management throughout Canada. In the past, directors often traveled
outside of Canada for purposes of attending board meetings in
foreign jurisdictions. Directors often made such travel
arrangements in order to maintain a corporation's residency
outside of Canada for tax purposes. However, the ongoing COVID-19
pandemic has significantly restricted directors' abilities to
travel abroad and, in turn, attend meetings in foreign
jurisdictions.
Directors have, in response, created alternative local or
"virtual" arrangements (i.e. video or teleconferencing)
for such meetings. However, these arrangements may have potentially
significant income tax consequences for a corporate taxpayer. This
bulletin will briefly address some of these consequences:
