common carrier

The taxpayer uses the services of subcontractors to have the goods transported, but handles all other aspects of the business and remains responsible to both the sending and receiving customers. In finding that the lack of ownership of the vehicles need not be an impediment to exemption of the taxpayer’s profits under Art. VIII of the Canada-U.S. Convention, CRA stated:

Into what class does a railway system acquired before 1958 by a corporation with a railway business fall? After assuming that the corporation was a “common carrier” (as referenced in Reg. 1104(2)), which CRA described as “a person who carries on the business of providing, for consideration, a service of transporting property or persons from one place to another and who generally offers its services to the public,” CRA stated: