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Although the employee's residence would not be a factor which connects the Indian's employment to the reserve, it is appropriate, under the circumstances laid out in Guideline 4, to recognize a connection since the employee is working for the benefit of Indians on reserve. However, if the population served by the organization was not comprised almost entirely of Indians who live on reserve, this latter connection would not exist. In addition, to determine whether Guideline 4 applies, the employment duties of each particular Indian employee of the Council would have to be considered to establish if they were in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

Eisner August 15, 1995 Dear Sir: Re: Personal Use of Vehicle This is in reply to your letter of January 23, 1995 in which you requested our views on whether certain travel is of a personal nature in connection with the determination of vehicle benefits. ... Nonetheless, where the individual is provided with a work location where, in connection with his or her employment duties, reports are filed, instructions or employment information is received, or other employment duties are involved, and the employee reports to the location on a basis such as every second or third day or every week or so, that work location is considered to be the employee's regular place of work. ... It is also our view that travel from (a) the individual's residence to a location to perform employment duties (e.g. a business appointment or meeting) and the return trip back to the residence, and (b) the regular place of employment to a location in connection with employment duties and then to the individual's residence, is of a business nature. ...

3.Paragraph 149.1(4)(d) of the Income tax Act refers to a debt "incurred in connection with the purchase and sale of investments... ... In particular, in our view, loans obtained or debts incurred for the purpose of permitting a public or private foundation to purchase investments are not debts "incurred in connection with the purchase and sale of investments". ... " In our view, when you consider the words "purchase and sale" and the type of debt that is being referred to in the words "in connection with", one would have to conclude that it would be a miscellaneous type of debt such as brokerage fees or other incidental amounts that could relate either to the purchase or the sale. ...

" Paragraph 4 of IT-386R states that there is "...a "mirror image test" to determine whether an amount which a taxpayer has received or may become entitled to receive in connection with a business as a result of a disposition of property, is proceeds from the disposition of eligible capital property resulting in an eligible capital amount. ... Paragraph 5 of IT-143R2, entitled "Meaning of eligible capital expenditure", specifically states that the Courts have referred to several definitions of goodwill, two of which are "(a) Goodwill is the whole advantage, whatever it may be, of the reputation and connection of the firm which may have been built up by years of honest work or gained by lavish expenditures of money. (b) It is the privilege, granted by the seller of a business to the purchaser, of trading as his recognized successor, the possession of a ready-formed connection of customers, considered as an element in the saleable value of a business additional to the value of the plant, stock-in trade, book debts, etc. ...

Principal Issues: Are legal fees incurred by a taxpayer to defend himself in connection with a prosecution under section 239 (income not reported) deductible? ... Our general position, as mentioned in paragraph 33 of Interpretation Bulletin IT-99R5, is that legal fees incurred in connection with a prosecution under section 239 (tax evasion) are not allowable expenses since they are not laid out to earn income. ... They incurred legal fees in connection with that prosecution. The Tax Court of Canada had to establish whether or not the legal fees incurred by the taxpayers were deductible in computing the income from their business. ...

Position: Yes Reasons: None of the Guidelines apply and there is insufficient connection between the employment income and a reserve to satisfy an "extenuating factors" analysis. ... It is our opinion that an off-reserve employer that commenced business operations in XXXXXXXXXX lacks a sufficient historical connection to the reserve for the income of its employees to be connected to a reserve and exempt from tax. A historical connection of sufficient significance would be one in which, for example, a business came into existence prior to or contemporaneously with the creation of a reserve. ...

Although the employee's residence would not be a factor which connects the Indian's employment to the reserve, it is appropriate, under the circumstances laid out in Guideline 4, to recognize a connection since the employee is working for the benefit of Indians on reserve. However, if the population served by the organization was not comprised almost entirely of Indians who live on reserve, this latter connection would not exist. In addition, to determine whether Guideline 4 applies to a particular Indian employee, the employment duties of the Indian employee would also have to be considered, in order to establish whether they are in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

Generally speaking, if a particular order or decision results in the closure of a particular qualifying property, and, as a result, some or all of the activities of the eligible entity at, or in connection with the qualifying property are required to cease, then those activities would be considered restricted activities. ... It requires that it is reasonable to conclude that at least approximately 25% of the qualifying revenues of the eligible entity for the prior reference period that were earned from, or in connection with, the qualifying property were derived from the restricted activities. ... Whether it is reasonable to conclude that at least approximately 25% of the qualifying revenues of an eligible entity for the prior reference period, were earned from, or in connection with, a qualifying property, were derived from restricted activities is a question of fact, and would have to be determined on a case-by-case basis. ...

We cannot conclusively establish whether XXXXXXXXXX provides services, and XXXXXXXXXX duties are in connection, to Indians who for the most part live on reserve. ... However, if the population served by the organization was not comprised almost entirely of Indians who live on reserve, this latter connection would not exist. ... XXXXXXXXXX duties of employment must be in connection with the employer's non-commercial activities. ...

That is, XXXXXXXXXX pursuant to a contract, and for a fee, does not constitute employment duties in connection with the employer's non-commercial activities. ... Facts Our understanding of the facts is as follows: XXXXXXXXXX In the legal representative's view, the employment income received by the Indian employees of XXXXXXXXXX in connection with the Work, is exempt from taxation under Guidelines 2 and 4 of the Indian Act Exemption for Employment Income Guidelines (the "Guidelines"), issued by the Department in June 1994. ... That is, in our view, XXXXXXXXXX pursuant to a contract, and for a fee, does not constitute employment duties in connection with the employer's non-commercial activities. ...