Section 132 — Excise Tax Act: Person resident in Canada

For the purposes of this Part, a person shall be deemed to be resident in Canada at any time in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere; in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member, or a majority of the members, having management and control thereof is or are resident in Canada at that time; in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time. For the purposes of this Part, where a non-resident person has a permanent establishment in Canada, the person shall be deemed to be resident in Canada in respect of, but only in respect of, activities of the person carried on through that establishment. For the purposes of this Part, where a person who is resident in Canada has a permanent establishment in a country other than Canada, the person shall be deemed to be a non-resident person in respect of, but only in respect of, activities of the person carried on through that establishment. For the purposes of this Part, where a person carries on a business through a permanent establishment of the person in Canada and through another permanent establishment of the person outside Canada, any transfer of personal property or rendering of a service by the establishment in Canada to the establishment outside Canada shall be deemed to be a supply of the property or service;

and in respect of that supply, the permanent establishments shall be deemed to be separate persons who deal with each other at arm’s length. Where under subsection 250(6) of the Income Tax Act a corporation is deemed for the purposes of that Act to be resident in a country other than Canada throughout a taxation year of the corporation and not to be resident in Canada at any time in the year, the corporation shall, for the purposes of this Part but subject to subsection (2), be deemed to be resident in that other country throughout the year and not to be resident in Canada at any time in the year. For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership.