2005 Ruling 2004-0094821R3 - Carrying on Business in Canada -- summary under Subparagraph 115(1)(a)(ii)

Ruling given that the expansion of services provided by a Canadian corporation ("Canco") to its affiliated non-resident administrator of investment funds (the "Funds") including processing subscriptions, transfers and redemptions and handling related correspondence, processing distributions, conducting anti-money laundering due diligence, publishing the NAVs, disbursing fees, maintaining a register of shareholders, dispatching shareholder meeting materials and audited financial statements, and providing various "middle office" accounting assistance, would not cause the Funds or the Administrator to be carrying on business in Canada for purposes of ss. 2(3)(b) and 115(1), or Part XIV. The statement of facts indicate that no resolutions will be passed by the Administrator or the Funds to appoint Canco as agent, "the various contracts entered in by Canco in the course of carrying on its business in Canada will create rights and obligations that are personal to Canco vis-à-vis the third parties", Canco will have limited contact with the investors in the Funds and "in particular, Canco does not and will not handle the receipt of monies paid by investors upon the investors' subscription for interest in the Funds" and "subscriptions are accepted or rejected by the Funds, not by Canco or the Administrator".