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.
920738
K. B. Harding
24(1) 957-2111
Attention: 19(1) November 27, 1992
Dear Sirs:
Re: Overseas Employment Tax Credit (OETC)
This is in reply to your letter of March 4, 1992 wherein you requested our opinion as to whether certain employees would qualify for the OETC in the following hypothetical situation.
A Canadian company (Canco) contracts with the foreign government to carry out and oil and gas exploration and development project (the "project") in that foreign country. Canco contracts with Serviceco, another Canadian company , to provide services to Canco, including one or more of Serviceco's employees to work on parts of the Project on Canco's behalf. Serviceco is the "specified employer" for purposes of section 122.3. of the Income Tax Act ( the "Act").
In our view, provided that Serviceco is carrying on business in connection with its contract with Canco and that contract is in respect to the project, the employees of Serviceco will be eligible to claim the OETC provided that they otherwise satisfy all the conditions set out in section 122.3 of the Act.
The foregoing opinion is not an advance income tax ruling and is not binding on the Department.
We trust the above comments are adequate for your purposes.
Yours truly,
for Director Reorganizations and Foreign Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1992
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1992
Email this Content