{"id":1039,"date":"2014-02-03T16:40:42","date_gmt":"2014-02-03T16:40:42","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1039"},"modified":"2014-02-03T16:40:42","modified_gmt":"2014-02-03T16:40:42","slug":"cra-interprets-the-phrase-assembly-project-under-canada-brazil-tax-treaty","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/02\/cra-interprets-the-phrase-assembly-project-under-canada-brazil-tax-treaty\/","title":{"rendered":"CRA interprets the phrase \u201cassembly project\u201d under Canada-Brazil Tax Treaty"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/02\/2013-0505911I7.pdf\">2013-0505911I7<\/a>, the CRA concluded that \u201cassembly project\u201d in Article 5 of the Canada-Brazil tax treaty should have a meaning similar to \u201cinstallation project\u201d.\u00a0 Such terms are typically relevant to the question whether a foreign company has a taxable permanent establishment (PE) in Canada.\u00a0 The term \u201cassembly project\u201d in the Canada-Brazil stems from the 1963 OECD Model Tax Treaty and was not defined at that time.\u00a0 Furthermore, no illuminating comments were made when this concept changed in 1977 to \u201cinstallation project\u201d.\u00a0 Given the lack of any definition of \u201cassembly project\u201d in any treaty or domestic tax legislation, the CRA concluded it would simply apply its positions on the phrase \u201cinstallation project\u201d.\u00a0 Specifically:<\/p>\n<ol>\n<li>An installation typically involves tangible property such as machinery or equipment, and the CRA takes a fairly narrow view of what qualifies as an installation activity.<\/li>\n<li>Installation should be the main activity of the project.\u00a0 If other significant activities are taking place \u2013 consulting, modification, or testing (for example) \u2013 the project might not be an installation project.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/02\/2013-0505911I7.pdf\">2013-0505911I7<\/a>, the CRA concluded that \u201cassembly project\u201d in Article 5 of the Canada-Brazil tax treaty should have a meaning similar to \u201cinstallation project\u201d.\u00a0 Such terms are typically relevant to the question whether a foreign company has a taxable&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1039","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1039"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1039\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}