Wolf v R : 2018 TCC 84

Resource Information

The work Wolf v R : 2018 TCC 84 represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Wolf v R : 2018 TCC 84

Contributor

• Baker, P

Subject

• 183 days rule
• burden of proof
• case law
• double taxation
• individual income tax
• services PE
• tax treaty

Language

eng

Summary

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

English