The Resource Wolf v R : 2018 TCC 84

Wolf v R : 2018 TCC 84

Wolf v R : 2018 TCC 84
Wolf v R : 2018 TCC 84
Judgment by the Tax Court of Canada, decision date 31 May 2018. The taxpayer was a US citizen and resident who was an expert in design of aircraft fuel lines. He held a patent which he licensed to an American company of which he was a shareholder and the patent was sub-licensed. He also spent 188 days during the relevant tax year in Canada on a contract through an intermediary to provide advice and help with design for Bombardier Aircraft, a Canadian company. The Canadian Ministry of National Revenue assessed the taxpayer for Canadian tax on the ground that it had been earned through a deemed permanent establishment in Canada under art V(9)(a) of the Canada-US double taxation convention. Given that the taxpayer had been in Canada for more than 183 days in the tax year, this would not be the case if more than 50% of the gross active business revenues of the enterprise consisted of income derived from services performed in the US during the 188-day period. This in turn required consideration of whether the taxpayer had a single enterprise or more than one and whether the payments constituted gross active business revenues. The taxpayer appealed against the assessment. The Tax Court of Canada ruled in favour of the tax authorities
Citation source
In: International tax law reports. - London. - Vol. 21 (2019), part 4 ; p. 506-525
Geographic coverage
North America
Language note
Baker, P
  • case law
  • individual income tax
  • double taxation
  • services PE
  • 183 days rule
  • burden of proof
  • tax treaty
Wolf v R : 2018 TCC 84

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