Although the reference to taxable Canadian property is to be read without reference to paragraph (a) of the definition (real property situated in Canada), real property situated in Canada that is used or held by a business carried on in Canada would also fit within paragraph (b) of the definition, so that such property would not be excluded. CRA stated:
This is consistent with the Department of Finance's Technical Notes which indicate that as a result of the restriction on the definition of taxable Canadian property under subsection 219(1.1) of the Act, only gains and losses that arise on capital property used in carrying on the non-resident corporation's business in Canada are included in the branch tax base amount.