Question

Mayfair Inc. was incorporated in New York in 2015. However, the head office of the corporation is in Montreal, Quebec. All the directors of the corporation are Canadian residents and all meetings of the board of directors are held in Montreal. Indicate if Mayfair Inc. would be considered residents of Canada for the current year. Explain the basis for your conclusion.

Answer 1

Answer:

Mayfair Inc. would be considered residents of Canada for Current Year.

Reason for Conclusion:

As Per Canadian Tax Laws, Any Company which is incorporated outside the Canada can be considered as residents of Canada for Current Year if Control of the Company that is Corporation is within Canada.

In case of Mayfair Inc. although its incorporation is outside the Canada that is New York, USA. But its Head Office is in Montreal,Canada apart of that All Board of Directors are Canadian residents and All the Board Meeting are also held in Montreal,Canada. This indicates that Control of Mayfair Inc. Is within Canada.

So, Based on above Points one can conclude that Mayfair Inc would be considered residents of Canada based on Control of Corporation is within Canada by virtue of Head Office location and Place of Board Meetings and residency of all Board of Directors