Investor Presentaiton
CORPORATE LAW
BY ALAIN RANGER
BRAZIL - CANADA COMPARATIVE LAW
the purpose of carrying on a single enterprise or specific venture.
Joint ventures take several forms. They can be set up through a
separate corporation, a general or limited partnership, or the joint
venturers can simply jointly own business assets. Joint ventures
between Canadian and foreign companies are an excellent vehicle
for combining the strengths of the participating firms, while reducing
the risk of taking on new markets.
The joint venturers are liable for the tax on their income earned as
participants in the joint venture.
(D) Franchises
A franchise is a business relationship in which a franchisee contracts
for the right to sell proprietary products or services using business
names, styles and methods developed by the franchisor.
The franchisee generally agrees to comply with performance
standards set by the franchisor. In return, the franchisee normally
pays an up-front fee as well as ongoing royalties.
A simple franchise agreement typically gives the franchisee the
right to operate a single outlet at a specified location. A master
franchise agreement generally provides for multiple outlets
within a specified area.
2. TAX SYSTEM
2.1 General Aspects
Income tax in Canada is imposed by the federal, provincial and
territorial governments.
Subject to certain tax treaty concessions, non-residents of Canada are
generally subject to Canadian taxation on Canadian source income, such
as income from a business carried on in Canada, income from office or
employment in Canada and capital gains on the disposition of property
known as "taxable Canadian property", which generally includes:
.
Real property situated in Canada;
Assets used in a business carried on in Canada;
A share of a private corporation resident in Canada where more than
50% of the fair market value of the share is derived (or was derived at
any time in the previous 60-month period) from real property in Canada,
Canadian resource properties, timber resource properties and options in
respect of any such property;
A share of a public corporation (or mutual fund trust) where (i) the
holder holds more than 25% of the issued shares and (ii) more than 50%
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