Taxes - Foreign-based Contractor

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Item Information

Revision History

Date Status ID Title
2007-11-30 Active C2000C Taxes - Foreign-based Contractor (2007-11-30) C2000C

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when a bid may be received from a foreign-based contractor.

For bid solicitations, use this clause in conjunction with A0222T. For requests for standing offers, use this clause in conjunction with M0222T.

Legal text for SACC item

Unless specified otherwise in the Contract, the price includes no amount for any federal excise tax, state or local sales or use tax, or any other tax of a similar nature, or any Canadian tax whatsoever. The price, however, includes all other taxes. If the Work is normally subject to federal excise tax, Canada will, upon request, provide the Contractor a certificate of exemption from such federal excise tax in the form prescribed by the federal regulations.

Canada will provide the Contractor evidence of export that may be requested by the tax authorities. If, as a result of Canada's failure to do so, the Contractor has to pay federal excise tax, Canada will reimburse the Contractor if the Contractor takes such steps as Canada may require to recover any payment made by the Contractor. The Contractor must refund to Canada any amount so recovered.