{"id":122,"date":"2012-09-18T16:30:33","date_gmt":"2012-09-18T16:30:33","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=122"},"modified":"2025-02-12T13:29:35","modified_gmt":"2025-02-12T21:29:35","slug":"cra-considers-cross-border-fees-paid-for-advertising-on-us-website","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2012\/09\/cra-considers-cross-border-fees-paid-for-advertising-on-us-website\/","title":{"rendered":"CRA considers cross-border fees paid for advertising on US website"},"content":{"rendered":"<p>In 2011-0416181E5 (released on Wednesday), the CRA considered a US company (US Co) that offered to Canadian companies (Cancos) the ability to advertise on US Co\u2019s website.\u00a0 The CRA concluded that payments by the Cancos were for advertising <span style=\"text-decoration: underline\">services<\/span>, and were not \u201cfor the use in Canada of property\u201d (i.e., US Co\u2019s website).\u00a0 Nonetheless, the payments to US Co (for the services) were based on the number of \u201cclicks\u201d of potential customers on the advertising.\u00a0 This meant the payments would be subject to 25% withholding tax in Canada under s. 212(1)(d)(iii).\u00a0 However, because US Co was a resident of the US, US Co was shielded from this withholding tax under the Canada-US treaty.\u00a0 Treaty protection was available because US Co did not have a permanent establishment in Canada under Article V of the treaty, and the payments did not constitute \u201croyalties\u201d as specifically defined in Article XII of the treaty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2011-0416181E5 (released on Wednesday), the CRA considered a US company (US Co) that offered to Canadian companies (Cancos) the ability to advertise on US Co\u2019s website.\u00a0 The CRA concluded that payments by the Cancos were for advertising <span style=\"text-decoration:&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-122","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/122","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=122"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/122\/revisions"}],"predecessor-version":[{"id":2862,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/122\/revisions\/2862"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}