Many corporations carry on business in more than one province. Assuming a corporation from Newfoundland wishes to conduct business in Nova Scotia, the corporation will not pay tax in Nova Scotia if: the parent corporation sets up a branch in Nova Scotia. a branch treaty exists between Newfoundland and Nova Scotia. O business is conducted with Nova Scotia by way of direct sales from Newfoundland. the permanent establishment in Nova Scotia has a lower sales to wage ratio than the ratio in Newfoundland.