16 March 1993 T.I. (Tax Window, No. 30, p. 15, ¶2478)

The provision by a non-resident engineering company of the conclusions of its research by means of a training course given outside Canada to Canadian-resident engineers for a fixed registration fee, would not be subject to 212(1)(d)(ii).

Payment for services of a non-resident engineer at an hourly rate of $125 would not appear to dependent upon the "use to be made of" or the "benefit to be derived from" such services.

Where a Canadian company enters into a contract with a non-resident engineering company to provide technical assistance which will be rendered outside Canada, with the information derived from the technical assistance to be used in Canada, and a portion of the cost being allocated to the technical assistance services, this would be characterized as a contract for services.

Payment to a U.S.-resident engineer for his services would be exempt from Part XIII tax if such payments did not fall within Article XII of the U.S. Convention.