7 August 1991 Ministerial Correspondence 911254 F - Overseas Employment Tax Credit (OETC)

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.

Subject: Overseas Employment Tax Credit (OETC)

This is in reply to your round trip memorandum dated May 1, 1991 in which you requested our views with respect to Mr.     19(1) request for a deduction from tax payable pursuant to section 122.3 of the Income Tax Act (the Act).  From the information submitted by you, we understand the situation to be as follows:

1.     

2.     

3.                           24(1)

4.     

5.     

6.                             24(1)

In order for an individual to be eligible to claim the OETC, the individual is required to perform all or substantially all (9O%) the duties of his employment in one or more countries 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 subparagraphs 122.3(1)(b)(i) and (ii) of the Act other than for the performance of services under a prescribed international development assistance program of the Government of Canada.

Based on our understanding of the information provided it is our view that Mr.  19(1)     is not eligible for the OETC for the following reasons:

A.                              24(1)

B.                              24(1)

We trust that our comments will be of assistance to you.

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