10 January 1990 Income Tax Severed Letter AC74327 - Overseas Employment Tax Credit (Form T626)

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.

Non-Resident
                                               Taxation Division
                                             Specialty Rulings
                                               Directorate
                                             K.B. Harding
                                             957-2129
                                             K. Hillier
                                             A/Director

Form T626                                    7-4327
Overseas Employment Tax Credit

This is in reply to your memorandum of September 12, 1989 wherein you requested we review a copy of a draft Form T626 and the proposed Information Circular covering the Overseas Employment Tax Credit Information for Employers.

We have reviewed Form T626 and are of the view that the form is adequate for purposes of administering section 122.3 of the Income Tax Act. However, we noted that there were non deductions made on the Form with respect to paragraphs 110(1)(d.1) and 110(1)(f) of the Income Tax Act, presumably it was felt that these deductions would not generally arise.

A review of the Information Circular indicates that changes have been made in accordance with the comments made in our letter of June 12, 1989. However, we offer the following comments for your consideration.

1. The would "not" should be inserted between the words "will" and "be" in line 5 of item 16 of the Circular.

2. We would suggest the word "generally" be inserted before the word "does" in line 3 of item 21 of the Circular and replace the word "Thus" with the word "Usually" in line 4 of the same item. It will probably be necessary to review files on a case by case basis where the taxpayer is of the view that his particular case falls within one of the qualified activities.

3. Add the letter "r" to the "othe" in line 6 of item 23 of the Circular.

We trust this is adequate for your purposes.

for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch