Regulation 402 - General Rules

Subsection 402(3)

See Also

International Harvester Co. of Canada, Ltd. v. Provincial Tax Commission, [1949] A.C. 36 (PC)

The taxpayer manufactured agricultural implements outside Saskatchewan and had sales branches in Saskatchewan. The Saskatchewan Provincial Tax...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) apportionment between manufacturing and selling 82

Commissioners of Taxation v. Kirk, [1900] A.C. 588 (PC)

Two mining companies that mined crude ore in New South Wales and (for the most part) also processed the crude ore there, but made contracts for...

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Words and Phrases
derived

Administrative Policy

1 September 2015 Internal T.I. 2013-0507381I7 - Transfer pricing adjustments and gross revenue

In the first scenario, a Canadian resident purchases a good (or service) from a non-resident at an amount in excess of an arm’s length price,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) [s. 247(2) increases to gross revenues] 43
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue sales (but not purchases) transfer pricing adjustments to gross revenue 45

31 March 2014 Internal T.I. 2013-0514921I7 - Meaning of "gross revenue" follow-up

Should amounts received or receivable as volume discounts should be included in a corporation's "gross revenue" for purposes of Reg. 402(3)? After...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue cost reductions not included 266

19 February 2014 Internal T.I. 2013-0508121I7 - Provincial Income Allocation among Joint Venturers

Are joint venture participants permitted, for purposes of provincial income allocation, to include their pro-rata share of the wages and salaries...

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11 March 2014 Internal T.I. 2013-0506801I7 - Salary and Wages, Part IV of the Regulations

Respecting the application of the definition of "salary or wages" in s. 248(1), CRA stated that "subsection 402(3) of the Regulations contemplates...

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19 November 2013 External T.I. 2012-0455731E5 F - Interprovincial income allocation

A corporation engaged in a franchising business which had a permanent establishment only in Quebec and which derived royalties ["redevances"] from...

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21 March 1996 Memorandum 960592 (C.T.O. "Interest on Overpayment and Adjusted Business Income")

Interest arising under s. 164(3) due to a refund of an overpayment resulting from a court-ordered reassessment, would not qualify as "gross revenue".

19 May 1994 External T.I. 5-940551

Recapture of depreciation does not constitute "gross revenue" for purposes of Regulation 402(3).

15 February 1994 Internal T.I. 7-933546

Where an oil and gas company does not have inventory readily available at a specific location and, in order to avoid transportation costs, borrows...

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16 March 1993 T.I. (Tax Window, No. 30, p. 21, ¶2505)

A capital gain from the disposition of property would not be included in a taxpayer's "gross revenue" whose definition in s. 248(1) specifically...

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2 February 1993 Memorandum (Tax Window, No. 28, p. 13, ¶2417)

Amounts allocated to employees by the trustee of an employee profit sharing plan are not salaries and wages for purposes of Regulations 400 or 5202.

Subsection 402(4)

See Also

Westar Mining Ltd.v. The Queen, 92 DTC 6358 (FCA)

Before going on to find that business interruption insurance proceeds were "income derived from the operation of a mine" for purposes of ITAR...

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Words and Phrases
derived

MNR v. Hollinger North Shore Exploration Co., 63 DTC 1031 (SCC)

In accepting the taxpayer's submission that royalties received by it from the operator of a mine qualified as "income derived from the operation...

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Words and Phrases
derived

Administrative Policy

15 March 1999 T.I. 982941

Description of criteria applied in determining the destination of a shipment of merchandise for purposes of Regulation 402(4)(a).

26 March 1997 T.I. 963064

Where a corporation having a permanent establishment in two provinces ships a product that is manufactured at its permanent establishment in the...

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30 March 1995 Internal T.I. 7-950610

Discussion of Regulation 402(4)(d). For Regulation 402(4)(d) to apply, there is no requirement that there be a transfer of the title to the "some...

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94 C.P.T.J. - Q. 7

Ontario's interpretation of the rules respecting the allocation of taxable income earned by oil and gas companies would suggest that the ultimate...

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Subsection 402(4.1)

Administrative Policy

31 January 2013 Internal T.I. 2012-0470361I7 - PIA - Non-manufactured goods (ITR 402(4.1))

The Legislative Policy Directorate had addressed a situation where a taxpayer with permanent establishments in a province and in a country other...

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Subsection 402(5)

Administrative Policy

October 1989 Revenue Canada Round Table - Q.26 (Jan. 90 Access Letter, ¶1075)

The words "used in connection with the principal business operations of the corporation" relate solely to the words "rentals or royalties from...

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Subsection 402(6)

Administrative Policy

7 August 2013 External T.I. 2012-0460511E5 - Reg 402(6) and SIFT Partnerships

CRA stated that Reg. 402(6):

...provides that a corporation's proportionate share of a SIFT partnership's gross revenue and salaries and wages is...

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20 October 2000 External T.I. 2000-0048685

Respecting a query as to a corporation which has a permanent establishment in a province and is also a limited partner in a limited partnership...

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Subsection 402(7)

Cases

W.E. Roth Construction Ltd. v. Minister of Finance (2001), 141 OAC 366 (CA)

The taxpayer managed its Ontario properties through four Ontario employees, whereas its Alberta properties were managed by three corporations...

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See Also

W.E. Roth Construction Ltd. v. Minister of Finance (Ontario), 99 DTC 5791 (Ont. Sup. Ct. J.)

Coo J. accepted the interpretation in IT-145R that the reference in the Ontario equivalent (s.302(7) of Regulation 183) to work "normally - ......

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Administrative Policy

25 September 2013 External T.I. 2013-0477571E5 F - Partnership - fin. fees and mng fees

A partnership (P1), whose sole permanent establishment is in Province 1, is a member of two partnerships (P2 and P3) whose sole permanent...

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23 October 1991 T.I. (Tax Window, No. 12, p. 22, ¶1550)

Regulation 402(7) may apply to fees paid to independent truckers.

Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 409 25

Subsection 402(8)

See Also

Enterprise Foundry (N.B.) Ltd. v. MNR, 64 DTC 660 (TAB)

The taxpayer's business was the sale in Quebec through a Quebec sales force of stoves manufactured by an affiliated company whose manufacturing...

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Words and Phrases
commission

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