,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act--,"pn]%ips--
  ,9come ( ,non-,resid5t ,"pn]s
,numb]3 ,,it-#ha;,r
,date3 ,may #f1 #aigf
,ref];e3 ,sec;n #if 7al sec;ns #aae &
  #baf & p>agraph #bab7#ac.a77b77

  ,? bullet9 replaces & c.els ,9t]pret,n
,bullet9 ,,it-#ha1 dat$ ,novemb] #cj1
#aigb4

#a4 ,p>agraph #if7#a77a7 (! ,9come ,tax
  ,act provides t ": a taxpay] is a
  memb] (a "pn]%ip1 8 9come or 8 taxa#
  9come e>n$ 9 ,canada =a tax,n ye> % 2
  -put$ z if ! "pn]%ip 7 a sep>ate p]son
  resid5t 9 ,canada4
#b4 ,! e6ect (! assump;n made 0p>agraph
  #if7#a77a7 is 6pool ! _w 9come (!
  "pn]%ip at ! "pn]%ip level4 ,9 !    #a
              ,,it-#ha;,r            a#a
  case (a taxpay] n resid5t 9 ,canada :o
  is a memb] (a "pn]%ip op]at+ 9
  ,canada1 ! pool+ (! _w 9come (!
  "pn]%ip at ! "pn]%ip level does n
  a6ect ! rules gov]n+ ! -put,n (! non-
  resid5t taxpay]'s taxa# 9come e>n$ 9
  ,canada4
#c4 ,f/ly1 ! _w 9come (! "pn]%ip w 2
  det]m9$ at ! "pn]%ip level & t 9come w
  2 3sid]$ 6reta9 xs id5t;y :5 fl[+ "?
  6! "pn]s "u p>agraph #if7#a77f74
  ,secondly1 sec;n #aae w 2 applica# =!
  purpose ( -put+ ! taxa# 9come e>n$ 9
  ,canada 0! non-resid5t "pn]2 if a
  s\rce ( 9come 9clud$ 9 9come at !
  "pn]%ip level is n taxa# "u sec;n
  #aae1 x w n 2 taxa# 9 ,canada 6! non-
  resid5t "pn]4 ,?us1 only ! non-resid5t
  "pn]'s propor;nate %>e (! 9come e>n$
  0! "pn]%ip 9 ,canada1 6! exclu.n (!
  9come f s\rces \tside ,canada1 w 2
  9clud$ 9 ! taxa# 9come e>n$ 9 ,canada
  0! non-resid5t "pn]4
                                      #b
       ,ga9s f ,4posi;n ( ,taxa#     b#a
           ,canadian ,prop]ty
    
#d4 ,": a "pn]%ip ( : "! >e "o or m non-
  resid5t memb]s makes a taxa# capital
  ga9 on ! 4posi;n 0x ( taxa# ,canadian
  prop]ty1 ! ga9 reta9s xs id5t;y 9 !
  h&s (! 9dividual "pn]s 0virtue (
  p>agraph #if7#a77f7 & ea* non-resid5t
  "pn] is requir$ 69clude 9 8 taxa#
  9come e>n$ 9 ,canada 8 respective %>e
  (! taxa# capital ga9 pursuant
  6subp>agraph #aae7#a77a77;iii74
--------------------------------------#b
     ,)hold+ ,tax on ,9ve/;t ,9come
    
#e4 ,p>agraph #bab7#ac.a77b7 provides t1
  ": a p]son resid5t 9 ,canada pays or
  cr$its an am.t af ,novemb] #bh1 #aigd
  6a "pn]%ip ( : "o or m p]sons >e n
  resid5ts ( ,canada1 ! "pn]%ip % 2
  deem$ 6be a non-resid5t p]son =
  purposes ( ,"p ,,xiii (! ,act1 o!r ?an
  sec;n #baf "!(4 ,acly1 if an am.t pd
  or cr$it$ 6s* a "pn]%ip -es )9 !    #c
              ,,it-#ha;,r            a#b
  purview ( any (! express provi.ns (
  ,"p ,,xiii (! ,act1 ! resid5t pay] m/
  )hold & remit tax 9 a3ord.e )! rules 9
  t ,"p (! ,act4 7,see1 h["e1 p>agraph
  #h 2l74
#f4 ,z an illu/r,n (! applic,n (
  p>agraph #bab7#ac.a77b7 & subsec;n
  #bad7#ae71 : al applies 6am.ts pd or
  cr$it$ af ,novemb] #ah1 #aigd1 an am.t
  pd 0a resid5t ( ,canada z a /&by *>ge
  or a gu>antee fee1 )9 ! m1n+ ( ^? t]ms
  9 subsec;n #bad7#ae7 is deem$ 6be a
  pay;t ( 9t]e/ = purposes ( p>agraph
  #bab7#a77b74 ,if s* a pay;t is made 6a
  "pn]%ip 3si/+ ( "o or m non-resid5t
  memb]s1 x is deem$ 6be a pay;t 6a non-
  resid5t & ?us requires a )hold+ ( tax
  0! resid5t 6! same ext5t z wd a pay;t
  ( 9t]e/ 0hm 6a non-resid5t 9dividual4
#g4 ,": tax is 6be )held "u ,"p ,,xiii
  2c a "pn]%ip is deem$ 0p>agraph
  #bab7#ac.a77b7 6be a non-resid5t
  p]son1 ! )hold+ applies 6! full am.t
  (! pay;t ev5 ?\< "s memb]s (!       #d
              ,,it-#ha;,r            b#b
  "pn]%ip >e resid5ts ( ,canada4 ,!
  por;n ( s* tax )held t is attributa#
  6a resid5t memb] (! "pn]%ip may 2
  claim$ 0hm z a cr$it ag/ ! tax o!rwise
  paya# "u ,"p ;,i (! ,act4
#h4 ,regul,n #hje7#a7 provides ?an an
  am.t rcvd 0a non-resid5t p]son t wd
  o!rwise 2 subject 6,"p ,,xiii (! ,act
  is exempt f tax "u t ,"p if ! am.t c
  r1sonably 2 attribut$ 6a busi;s c>ri$
  on 0hm 9 ,canada & ?us subject 6tax "u
  ,"p ;,i (! ,act4 ,9 ^! circum/.es1 !
  resid5t pay] ne$ n )hold tax f an am.t
  pd if he has obta9$ assur.e f !
  ,de"p;t t ! rule 9 ,regul,n #hje7#a7
  is applica# 6t am.t4 ,x is alw a "q (
  fact :e!r any "p (a "picul> "pn]%ip
  busi;s is actu,y c>ri$ on 9 ,canada1 b
  if x is !n ea* memb] (! "pn]%ip is
  3sid]$ 6be c>ry+ on busi;s 9 ,canada4
  ,9 an ord9>y "pn]%ip1 ea* "pn] is !
  ag5t (! o!r "pn]s & h;e1 al? a "pn]
  may n hmf actively "picipate 9 !
  busi;s "? 8 ag5ts1 i4e4 !           #e
              ,,it-#ha;,r            c#b
  8active0 "pn]s4 ,a p]son :o is deem$
  0subsec;n #if7#a.a7 6be a memb] (a
  "pn]%ip1 & :o may h only a remote
  3nec;n )! "pn]%ip1 is n"e!.s 6be view$
  z c>ry+ on ! busi;s 0virtue ( subsec;n
  #if7#a.f74
--------------------------------------#c
     ,alt]native re ,r5ts & ,timb]
               ,royalties
    
#i4 ,= tax,n ye>s 5d+ af ,may #f1 #aigd1
  a non-resid5t memb] (a "pn]%ip may
  elect 6file a return z if he 7 a
  resid5t ( ,canada & pay tax "u ,"p ;,i
  (! ,act1 9 lieu (! tax t wd o!rwise 2
  paya# 0hm "u ,"p ,,xiii1 on 8 %>e (
  all am.ts rcvd 0! "pn]%ip1 & all am.ts
  rcvd hmf1 9 ! way ( r5ts on r1l
  prop]ty 9 ,canada or timb] royalties :
  >e n associat$ )a busi;s c>ri$ on 9
  ,canada4 ,all ! rules 9 sec;n #baf
  gov]n+ ! fil+ (a sep>ate return &!
  pay;t ( tax "u ,"p ;,i apply 6a non-
  resid5t "pn] 9 ^! circum/.es4       #f
              ,,it-#ha;,r            a#c
#aj4 ,": an elec;n is made z describ$ 9
  p>agraph #i abv1 ! 9come t 2comes
  subject 6,"p ;,i (! ,act is n 3sid]$
  6be e>n$ 9 any "picul> prov9ce (
  ,canada4 ,3sequ5tly1 ! a4i;n 6tax
  provid$ 9 sec;n #abj is applica#4 ,!
  g5]al av]ag+ provi.ns ( sec;n #aah >e
  n applica# 6a non-resid5t 9 respect (
  9come report$ on ! sep>ate return fil$
  pursuant 6an elec;n "u sec;n #baf s9ce
  t sec;n does n deem s* a non-resid5t
  6h be5 a resid5t ( ,canada or 6h c>ri$
  on busi;s 9 ,canada z a non-resid5t 9
  respect ( t 9come4

      ,"pn]s ,c1s+ 6be a ,memb] (a
                ,"pn]%ip
    
#aa4 ,subsec;n #if7#a.a7 provides t1 "u
  c]ta9 circum/.es specifi$ "!91 ": a
  "pn]1 9clud+ a non-resid5t "pn]1 c1ses
  6be a memb] (a "pn]%ip ! pr9cipal
  activ;y ( : is ! c>ry+ on ( busi;s 9
  ,canada he is deem$ 63t9ue 6be a    #g
              ,,it-#ha;,r            b#c
  memb] (! "pn]%ip or1 9 ! alt]native1 8
  sp\se1 e/ate1 heir or a p]son acquir+
  ! 9t]e/ ( any ( !m is deem$ 6be a
  memb] (! "pn]%ip4 ,if s* a p]son is a
  non-resid5t1 all ! rules 9 ! ,act
  relat+ 6non-resid5t "pn]s & 6"pn]%ips
  3si/+ ( "o or m non-resid5t "pn]s >e
  applica#4 ,x is provid$ fur!r 9
  subsec;n #if7#a.f7 t s* a p]son is
  deem$ 6c>ry on busi;s 9 ,canada if !
  "pn]%ip c>ries on busi;s 9 ,canada4 ,x
  is 6be not$ t ! rules 9 subsec;ns
  #if7#a.a7 & #if7#a.f7 >e n applica# ":
  ! pr9cipal activ;y (! "pn]%ip is !
  c>ry+ on ( busi;s \tside ,canada4

     ,applic,n ( ,"p ,,xiv 78,bran*
                 ,tax07
    
#ab4 ,a non-resid5t corpor,n or a
  resid5t corpor,n t is n a ,canadian
  corpor,n : c>ries on busi;s 9 ,canada
  z a memb] (a "pn]%ip is subject 6!
  a4i;nal tax specifi$ 9 ,"p ,,xiv    #h
              ,,it-#ha;,r            c#c
  (! ,act4 ,! rules = det]m9+ ! all[.e
  =! 9ve/;t 9 prop]ty 9 ,canada = s* a
  corporate "pn] >e set \ 9 subsec;ns #d
  6#f ( ,regul,n #hjh4
--------------------------------------#d
       ,reciprocal ,tax ,tr1ties
    
#ac4 ,z 9 ! case ( any non-resid5t1 !
  rules 9 ! ,act relat+ 6a non-resid5t
  memb] (a "pn]%ip c>ry+ on busi;s 9
  ,canada may 2 subject 6ov]rid+
  provi.ns 9 a reciprocal tax tr1ty 2t
  ,canada &! c.try ( : ! non-resid5t
  memb] (! "pn]%ip is a resid5t4









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