Wolf v R : 2019 FCA 283

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The item Wolf v R : 2019 FCA 283 represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation.
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Summary: Judgment by the Canadian Federal Court of Appeal, decision date 15 November 2019. The taxpayer was a US citizen and resident who 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. 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. The taxpayer appealed against the assessment. The Tax Court of Canada ruled in favour of the tax authorities. The taxpayer appealed to the Canadian Federal Court of Appeal which has unanimously upheld the decision of the Tax Court of Canada. The central issue was the failure of the taxpayer to prove that more than 50% of gross active business revenues of the taxpayers' enterprise was not derived from Canada. The Court of Appeal confirmed the decision of the Tax Court that the taxpayer had failed to bring evidence to prove this fact

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Summary: Judgment by the Canadian Federal Court of Appeal, decision date 15 November 2019. The taxpayer was a US citizen and resident who 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. 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. The taxpayer appealed against the assessment. The Tax Court of Canada ruled in favour of the tax authorities. The taxpayer appealed to the Canadian Federal Court of Appeal which has unanimously upheld the decision of the Tax Court of Canada. The central issue was the failure of the taxpayer to prove that more than 50% of gross active business revenues of the taxpayers' enterprise was not derived from Canada. The Court of Appeal confirmed the decision of the Tax Court that the taxpayer had failed to bring evidence to prove this fact