Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether taxpayer qualifies for the overseas employment tax credit if advised to return to Canada by the Canadian embassy before the more than six consecutive month requirement is satisfied XXXXXXXXXX .
Position: No. However, a remission request could be considered.
Reasons: Extraordinary circumstances prevented the satisfaction of the requirements of the overseas employment tax credit.
XXXXXXXXXX 2003-000165
March 4, 2003
Dear XXXXXXXXXX:
Re: Overseas Employment Tax Credit (OETC) and Remission Orders
This is in response to your facsimile dated February 5, 2003 and further to our subsequent telephone conversations in reference to the above issue. You describe the following scenario.
1) A taxpayer has received authorization for reduced withholdings from his remuneration derived from duties of employment exercised XXXXXXXXXX for the reason that it was anticipated that he would fully qualify for the OETC.
2) The taxpayer ceased his regular duties of employment in Canada and began working in XXXXXXXXXX in XXXXXXXXXX.
3) XXXXXXXXXX.
4) The taxpayer returned to Canada in XXXXXXXXXX to resume his regular duties of employment with his employer in Canada.
You request our view whether in the above circumstances the taxpayer would be eligible for the OETC.
The taxpayer does not qualify for the OETC in the above circumstances for the reason that he will not have performed substantially all of his duties of employment during any period of more than six consecutive months outside Canada. However, the taxpayer could qualify for relief from income tax through a remission order granted under the Financial Administration Act. In these circumstances, a remission request would be sent to the Department of Finance at the following address:
Tax Policy Branch
Department of Finance
L'Esplanade Laurier
140 O'Connor Street
Ottawa ON K1A 0G5
The contact person at the Department of Finance is Ryan Hall. Mr. Hall can be reached at (613)996-5155.
We hope that the above is of assistance to you.
Yours truly,
Olli Laurikainen
Manager
International Section II
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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