International Links Inc. is a telecommunications company incorporated in the United States with a December 31 year end. It began operating one small pilot project office in Toronto in fiscal 2015 in addition to its 52 U.S. offices. The corporation is not resident in Canada; however, the Canadian office is considered a permanent establishment under the Canada-U.S. Tax Treaty. The corporation’s taxable income from Canadian operations was $280,000 in 2016. The corporation has $50,000 of qualified investment property in Canada. At the end of fiscal 2015, it had $20,000 of qualified investment property.

REQUIRED

Compute the corporation’s branch tax liability for 2016 on the assumption that the Ontario provincial corporate tax rate is 13%. (Ignore surtaxes.)