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In determining 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 determine 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. ... 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. ...

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. ...

In connection with your concern, we also wish to acknowledge that in our discussion with Mr. ... In connection with the above comments, it would also be useful to compare the leasing arrangement to a typical leasing arrangement of an entity that leases automobiles on a day to day basis. ... " In connection with the comments in (b) above, the facts that Holdco has no employees and that there is no written lease agreement suggest that Holdco may have limited responsibilities with respect to the lease arrangement. ...

(vii)reasonable allowances for travelling expenses (other than allowances for the use of a motor vehicle) received by an employee (other than an employee employed in connection with the selling of property or the negotiating of contracts for the employer) from the employer for travelling away from (A) the municipality where the employer's establishment at which the employee ordinarily worked or to which he ordinarily made his reports was located, and (B) the metropolitan area, if there is one, where that establishment was located, in the performance of the duties of his office or employment, (vii.1)reasonable allowances for the use of a motor vehicle received by an employee (other than an employee employed in connection with the selling of property or the negotiating of contracts for the employer) from the employer for travelling in the performance of the duties of the office or employment,.... and, for the purposes of subparagraphs (v),(vi) and (vii.1), an allowance received in the year by the taxpayer for the use of a motor vehicle in connection with or in the course of the taxpayer's office or employment shall be deemed not to be a reasonable allowance (x)where the measurement of the use of the vehicle for the purpose of the allowance is not based solely on the number of kilometres for which the motor vehicle is used in connection with or in the course of the office or employment, or (xi)where the taxpayer both receives an allowance in respect of that use and is reimbursed in whole or in part for expenses in respect of that use (except where the reimbursement is in respect of supplementary business insurance or parking, toll or ferry charges and the amount of the allowance was determined without reference to those reimbursed expenses). ... There are a number of provisions that must be satisfied before an employee is entitled to deduct costs in connection with workspace in the home. ...

However, if the population served by the organization is not comprised almost entirely of Indians who live on reserve, this latter connection would not exist. ... The employee's duties of employment must be in connection with the employer's non-commercial activities. 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. ...

Position: (1) Yes, assuming that throughout that "qualifying period" the employee performed all or substantially all (that is, at least 90%) the duties of his or her employment: (i) outside Canada; and (ii) in connection with a contract under which Canco carried on business in the U.S. with respect to a "qualifying activity". ... During a period of absence from the work location, an employee may perform duties of employment in Canada and still remain eligible for the OETC provided that throughout the "qualifying period" substantially all (i.e., at least 90%) of the employment duties are performed outside Canada and in connection with a contract under which the employer carried on business outside Canada with respect to a "qualifying activity". ... It appears that this substantially all test would be met if the employee were to work at a New York state work site for five months in connection with a contract under which Canco carried on business outside Canada with respect to a "qualifying activity", return to work at Canco's office in Canada for a week and then return to the New York state work site to work on that contract for the remainder of the year. ...

8 December 1982 Income Tax Severed Letter XXXX December 8, 1982 For the attention of XXXX Dear Sirs: The undersigned hereby authorizes you to apply to the Department of National Revenue for an advance income tax ruling in connection with the proposed disposition of his shares of XXXX Yours very truly, XXXX ...

Reasons: Under subsection 212(5) withholding tax applies to payments to a non-resident for a "right in or to the use of" a) a motion picture film or b) a film, video tape or other means of reproduction for use in connection with television, that has been or is to be used or reproduced in Canada. ... The fees Canco paid to the non-residents are subject to subsection 212(5) of the Act, which states: 212(5) Motion picture films- Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of, payment for a right in or to the use of (a) a motion picture film, or (b) a film, video tape or other means of reproduction for use in connection with television (other than solely in connection with and as part of a news program produced in Canada), that has been or is to be used or reproduced in Canada. ...

The reference in subsection 402(5) of the Regulations to "that is not used in connection with the principal business operations of the corporation" refers only to "rentals or royalties from property" and not to the other items enumerated therein. 3. ... Interest and dividend income For the purposes of your letter, you have assumed that subsection 402(5) of the Regulations did not apply to exclude from "gross revenue" the interest and dividend income earned by the corporation as it is an investment holding corporation and the property from which the corporation derived its interest and dividend income is used in connection with the principal business operations of the corporation. ... The reference in subsection 402(5) of the Regulations to "that is not used in connection with the principal business operations of the corporation" refers only to "rentals or royalties from property" and not to the other items enumerated therein. ...

However, subparagraph 212(1)(d)(iii) of the Act does not apply to payments that are made for services performed in connection with the sale of property or the negotiation of a contract. ... Given the breadth of the expression "in connection with" and of the term "property", even if the Incentive Payments were payable as consideration for a service described in any of clauses 212(1)(d)(iii)(A) to (C), they should not be subject to Part XIII withholding tax based on the exception in the post amble to subparagraph 212(1)(d)(iii) since they appear to have been made either for services performed in connection with the sale of property or the negotiation of a contract. ...