II, s. 85, c. 21, s. 521995, c. 21, s. 372001, c. 17, s. 89
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 114.12001, c. 17, s. 89
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1985, c. 45, s. 591988, c. 55, s. 87
115(1)For the purposes of this Act, the taxable income earned in Canada for a taxation year of a person who at no time in the year is resident in Canada is the amount, if any, by which the amount that would be the non-resident person’s income for the year under section 3 if(a)the non-resident person had no income other than(i)incomes from the duties of offices and employments performed by the non-resident person in Canada and, if the person was resident in Canada at the time the person performed the duties, outside Canada,(ii)incomes from businesses carried on by the non-resident person in Canada which, in the case of the Canadian banking business of an authorized foreign bank, is, subject to this Part, the profit from that business computed using the bank’s branch financial statements (within the meaning assigned by subsection 20.2(1),(iii)taxable capital gains from dispositions described in paragraph 115(1)(b),(iii.1)the amount by which the amount required by paragraph 59(3.2)(c) to be included in computing the non-resident person’s income for the year exceeds any portion of that amount that was included in computing the non-resident person’s income from a business carried on by the non-resident person in Canada,(iii.2)amounts required by section 13 to be included in computing the non-resident person’s income for the year in respect of dispositions of properties to the extent that those amounts were not included in computing the non-resident person’s income from a business carried on by the non-resident person in Canada,(iii.21)the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(v) or section 56.3 in computing the non-resident person’s income for the year,(iii.22)the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(iv.1) in computing the non-resident person’s income for the year,(iii.3)in any case where, in the year, the non-resident person carried on a business in Canada described in any of paragraphs (a) to (g) of the definitionprincipal-business corporationin subsection 66(15), all amounts in respect of a Canadian resource property that would be required to be included in computing the non-resident person’s income for the year under this Part if the non-resident person were resident in Canada at any time in the year, to the extent that those amounts are not included in computing the non-resident person’s income by virtue of subparagraph 115(1)(a)(ii) or 115(1)(a)(iii.1),(iv)the amount, if any, by which any amount required by subsection 106(2) to be included in computing the non-resident person’s income for the year as proceeds of the disposition of an income interest in a trust resident in Canada exceeds the amount in respect of that income interest that would, if the non-resident person had been resident in Canada throughout the year, be deductible under subsection 106(1) in computing the non-resident person’s income for the year,(iv.1)the amount, if any, by which any amount required by subsection 96(1.2) to be included in computing the non-resident person’s income for the year as proceeds of the disposition of a right to a share of the income or loss under an agreement referred to in paragraph 96(1.1)(a) exceeds the amount in respect of that right that would, if the non-resident person had been resident in Canada throughout the year, be deductible under subsection 96(1.3) in computing the non-resident person’s income for the year,(v)in the case of a non-resident person described in subsection 115(2), the total determined under paragraph 115(2)(e) in respect of the non-resident person,(vi)the amount that would have been required to be included in computing the non-resident person’s income in respect of a life insurance policy in Canada by virtue of subsection 148(1) or 148(1.1) if the non-resident person had been resident in Canada throughout the year, and(vii)in the case of an authorized foreign bank, the amount claimed by the bank to the extent that the inclusion of the amount in income(A)increases any amount deductible by the bank under subsection 126(1) for the year, and(B)does not increase an amount deductible by the bank under section 127 for the year,(b)the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were taxable capital gains and allowable capital losses from dispositions, other than dispositions deemed under subsection 218.3(2), of taxable Canadian properties (other than treaty-protected properties), and(b.1)[Repealed, 2001, c. 17, s. 90(4)](c)the only losses for the year referred to in paragraph 3(d) were losses from duties of an office or employment performed by the person in Canada and businesses (other than treaty-protected businesses) carried on by the person in Canada and allowable business investment losses in respect of property any gain from the disposition of which would, because of this subsection, be included in computing the person’s taxable income earned in Canada,exceeds the total of(d)the deductions permitted by subsection 111(1) and, to the extent that they relate to amounts included in computing the amount determined under any of paragraphs (a) to (c), the deductions permitted by any of paragraphs 110(1)(d) to (d.2), (e) and (f) and subsection 110.1(1),(e)the deductions permitted by any of subsections 112(1) and (2) and 138(6) in respect of a dividend received by the non-resident person, to the extent that the dividend is included in computing the non-resident person’s taxable income earned in Canada for the year,(e.1)the deduction permitted by subsection (4.1), and(f)where all or substantially all of the non-resident person’s income for the year is included in computing the non-resident person’s taxable income earned in Canada for the year, such of the other deductions permitted for the purpose of computing taxable income as may reasonably be considered wholly applicable.Marginal note:Idem(2)Where, in a taxation year, a non-resident person was(a)a student in full-time attendance at an educational institution in Canada that is a university, college or other educational institution providing courses at a post-secondary school level in Canada,(b)a student attending, or a teacher teaching at, an educational institution outside Canada that is a university, college or other educational institution providing courses at a post-secondary school level, who in any preceding taxation year ceased to be resident in Canada in the course of or subsequent to moving to attend or to teach at the institution,(b.1)an individual who in any preceding taxation year ceased to be resident in Canada in the course of or subsequent to moving to carry on research or any similar work under a grant received by the individual to enable the individual to carry on the research or work,(c)an individual(i)who had, in any previous year, ceased to be resident in Canada,(ii)who received, in the taxation year, salary or wages or other remuneration in respect of an office or employment that was paid to the individual directly or indirectly by a person resident in Canada, and(iii)who was, under an agreement or a convention with one or more countries that has the force of law in Canada, entitled to an exemption from an income tax otherwise payable in any of those countries in respect of the salary or wages or other remuneration, or(c.1)a person who received in the year an amount, under a contract, that was or will be deductible in computing the income of a taxpayer subject to tax under this Part and the amount can, irrespective of when the contract was entered into or the form or legal effect of the contract, reasonably be regarded as having been received, in whole or in part,(i)as consideration or partial consideration for entering into a contract of service or an agreement to perform a service where any such service is to be performed in Canada, or for undertaking not to enter into such a contract or agreement with another party, or(ii)as remuneration or partial remuneration from the duties of an office or employment or as compensation or partial compensation for services to be performed in Canada,the following rules apply:(d)for the purposes of subsection 2(3) the non-resident person shall be deemed to have been employed in Canada in the year,(e)for the purposes of subparagraph 115(1)(a)(v), the total determined under this paragraph in respect of the non-resident person is the total of(i)any remuneration in respect of an office or employment that was paid to the non-resident person directly or indirectly by a person resident in Canada and was received by the non-resident person in the year, except to the extent that the remuneration is attributable to the duties of an office or employment performed by the non-resident person anywhere outside Canada and(A)is subject to an income or profits tax imposed by the government of a country other than Canada, or(B)is paid in connection with the selling of property, the negotiating of contracts or the rendering of services for the non-resident person’s employer, or a foreign affiliate of the employer, or any other person with whom the employer does not deal at arm’s length, in the ordinary course of a business carried on by the employer, that foreign affiliate or that person,(ii)amounts that would be required by paragraph 56(1)(n) or 56(1)(o) to be included in computing the non-resident person’s income for the year if the non-resident person were resident in Canada throughout the year and the reference in the applicable paragraph to “received by the taxpayer in the year” were read as a reference to “received by the taxpayer in the year from a source in Canada”,(iii)[Repealed, 1994, c. 7, Sch