Question
The definition of "business" found in Section 123 of the Excise Tax Act (the "ETA") differs from that found in the Income Tax Act (the "Act"). The ETA's definition includes "... any activity engaged in on a regular or continuous basis that involves the supply of property by way of lease, license or similar arrangement...".
Where Revenue Canada, Customs and Excise renders a decision under this provision that results in a non-resident corporation being found to be carrying on business in Canada, would this have any impact on Revenue Canada, Taxation's treatment of such a corporation under the Act?
Department's Position
Whether a person is carrying on business in Canada, for purposes of the Act, is a question of fact that can only be determined with full knowledge of all of the particulars of the situation. Such a determination would be made in accordance with the provisions of the Act. A statutory definition of "business" for purposes of the ETA would not be considered relevant to making this determination.
Prepared by Tim Kuss November 4, 1991
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