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.
5-903568
This, is in reply to your letter of November 29, 1990 wherein you requested our opinion whether you would be eligible to claim the Overseas Employment Tax Credit (OETC).
It is our understanding that
24(1)
In order for an individual to be eligible to claim the OETC, in addition to meeting other conditions set out in subsection 122.3(1) of the Income Tax Act (the "Act"), the individual is required to perform all or substantially all the duties of his employment outside Canada in connection with a contract under which the specified employer carried on business in such country or countries with respect to the qualified activities set out in paragraph 4(c) of Interpretation Bulletin IT-497R2.
Based on the limited facts provided in your letter of October 25 and November 29, 1991.
24(1)
In order for you to qualify for the OETC it would be necessary for 24(l) Co to demonstrate that they are carrying on business in Mexico in connection with a contract with respect to one or more of the qualified activities. To make this determination Revenue Canada Taxation would have to review all the relevant facts such as whether 24)(1) has an office in Mexico, what assets of the business are used in that country, the number of employees (other than yourself) in the foreign jurisdiction, the terms of the contract, how its activities in Mexico relate to 24(1) other business activities and any other relevant Information pertaining to its carrying on business in Mexico.
We trust these comments satisfactorily explains our position.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. J. Hartwick Non-Resident Taxation Division
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