Where a non-resident has working interests in oil and gas wells which represent permanent establishments in Canada through which it carries on business, and also has resource royalty income from Canada, the royalties if not attributable to the business carried on in Canada will be included in its income under s. 115(1)(a)(iii.3) and, therefore, would be included in income referred to in Regulation 805(1). However, the payor of the royalties would not be relieved from its withholding tax obligation unless a waiver were obtained.
