31 May 1995 IFA Roundtable Q. 10, 9514550 - 6363-1 FOREIGN AFFILIATE - INVESTMENT BUSINESS

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0010
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6363-1 FOREIGN AFFILIATE - INVESTMENT BUSINESS
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English
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95(1)
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9514550
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Main text

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

DRAFT

International Fiscal Association 1995 Conference

QUESTION 10

Investment Business Definition

How does Revenue Canada intend to review the business operations of foreign affiliates for the purposes of this definition in determining whether more than one separate business exists.

Department's Position

Whether the carrying on of two or more simultaneous business operations by a foreign affiliate is the same business or represents two separate businesses is dependent upon the degree of interconnection, interlacing or interdependence and the extent of the unity embracing the business operations. In order to make such assessment it is necessary to obtain all of the facts surrounding the particular situation. Interpretation Bulletin IT-206R sets out certain general guidelines which are used by Revenue Canada in making this determination.

Prepared by: Olli Laurikainen
951455
May 31, 1995