In technical interpretation 2019-0833181E5 (March 15, 2020), the CRA considered when the sale or licensing of digital products could be considered to generate income from a service for the purposes of the TOSI rules. According to the CRA, the download of a digital product that would ‘traditionally’ have been sold as tangible property would likely be considered the sale of intangible property instead rather than the provision of a service, but the CRA (not surprisingly) was eager to emphasize that each case would need to be considered on its merits.
Dino Infanti “TOSI: ‘Provision of Services’ in a Digital Age” 20:4 Tax for the Owner-Manager (October 2020)
