Transactions
Foreign Co, a Norwegian limited liability company, entered into the Agreement for the bareboat charter to it of the Ship from a Norwegian partnership (Partnership IX), and entered into the Contract for the time charter of the Ship to Canadian resident companies (the “Cancos”) for use of the Ship in relation to a facilities located in Canada and owned by the Cancos. Foreign Co's made payments to Partnership IX as, on account of, or in lieu of, or in satisfaction of, Foreign Co's use of, or the right to use, the Ship to transport XX to locations inside and outside of Canada.
Ruling
That Partnership IX and its two Norwegian corporate partners will not have a permanent establishment situated in Canada for purposes of Article 5 of the Canada-Norway Treaty, solely by reason of Partnership IX having entered into the Agreement with Foreign Co.