Corporations worldwide are dealing with Canada.
Depending on their level of involvement, these corporations may be
subject to Canadian corporate tax and/or filing
obligations.
This article will focus on some of the Canadian taxation issues
faced by corporations doing business with Canada.
Legislation
According to Canadian income tax legislation, any non-resident
corporation that carries on business in Canada or disposes of
certain Canadian property (known as "taxable Canadian
property") will be subject to Canadian corporate income
tax.
Therefore, it is important to determine first whether the
corporation is, in fact, carrying on a business in Canada. Many
activities could result in corporations carrying on a business in
Canada, including, but not limited to: the solicitation of orders
in Canada, whether contracts are concluded in Canada and if Canada
is the location of operations that produces the profits.
