Is there a discrepancy between the CRA's position that subpara. 9(b) of Article V of the Canada-U.S. Treaty could apply where services are rendered between related parties and the US Joint Committee on Taxation's statement in. JCX-57-08 that: "paragraph 9 only applies to services provided by the enterprise to third parties and not to services provided to that enterprise (i.e. inter-company services)." CRA responded:
The CRA continues to be of the view that a related party may be a "third party" and therefore paragraph 9 of Article V can give rise to a permanent establishment where the services in question are rendered to a related party. The CRA agrees with the comment in the TE to the effect that paragraph 9 of Article V cannot give rise to a PE for an enterprise when services are rendered to that enterprise. It is not clear to the CRA that its views are contrary to the views of the U.S. Joint Committee.