Many corporations carry on business in more than one province. Assuming a corporation from Province A wishes to conduct business in Province B, the corporation will not have to pay tax in Province B if:
A) the parent corporation sets up a branch in Province B.
B) business is conducted with the other province by way of direct sales from Province A.
C) a branch treaty exists between the two provinces.
D) the permanent establishment in Province B has a lower sales to wage ratio than the ratio in Province A.

Question

Quizplus · Accepted Answer

If a corporation conducts business in another province through direct sales from its home province without establishing a physical presence or permanent establishment in the other province, it typically does not have to pay tax in that other province.

Many Corporations Carry on Business in More Than One Province