{"id":500,"date":"2013-03-11T15:21:04","date_gmt":"2013-03-11T15:21:04","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=500"},"modified":"2025-02-12T13:29:33","modified_gmt":"2025-02-12T21:29:33","slug":"cra-rules-that-cancos-web-hosting-does-not-constitute-pe-of-related-non-resident","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2013\/03\/cra-rules-that-cancos-web-hosting-does-not-constitute-pe-of-related-non-resident\/","title":{"rendered":"CRA rules that Canco\u2019s web-hosting does not constitute PE of related non-resident"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/03\/2012-0432141R3.pdf\">2012-0432141R3<\/a>, the CRA ruled that web-hosting services provided by a Canadian company (Canco) to a related non-resident company (USCo) would <u>not<\/u> constitute a permanent establishment (PE) of US Co in Canada.  The facts disclosed that Canco would construct and own a data center in Canada, and would enter into a service agreement with USCo.  Under the service agreement, Canco would provide USCo with website and data hosting capacity in exchange for an arm\u2019s length fee.  Canco\u2019s personnel would be responsible for the installation, operation, maintenance, and repair of the equipment in the data center. Access to the data center, and other secured areas within the data center, would be restricted to Canco\u2019s employees.  A small group of USCo employees would be authorized by Canco to visit the data center from time to time for purposes of inspection, maintenance or similar purposes.  The duration of such activities, however, would not exceed a specified number of days in Canada.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/03\/2012-0432141R3.pdf\">2012-0432141R3<\/a>, the CRA ruled that web-hosting services provided by a Canadian company (Canco) to a related non-resident company (USCo) would <u>not<\/u> constitute a permanent establishment (PE) of US Co in Canada.  The facts disclosed that Canco would construct&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-500","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/500","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=500"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/500\/revisions"}],"predecessor-version":[{"id":2800,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/500\/revisions\/2800"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}