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To qualify for the OETC, an individual must: (a) be employed by a specified employer (generally, a resident of Canada), other than for the performance of services under a prescribed international development assistance program of the Government of Canada; (b) be employed in connection with a contract under which the specified employer carried on business outside Canada on a resource, construction, installation, agricultural, engineering or prescribed activity (or for the purpose of obtaining such a contract); (c) have performed all or substantially all the employment duties (done in connection with a contract described in (b) above) outside Canada. ... It is the CRA's position that an employer does not carry on business in another country with respect to one of the specified types of qualifying activities unless such activity is the primary (that is more than 50%) and most important activity of the employer in connection with the particular contract. ...

Specifically, Guideline 4 requires that: a) the employer is resident on a reserve; b) the employer is an Indian band which has a reserve, or a tribal council representing one or more Indian bands which have reserves, or an Indian organization controlled by one or more such bands or tribal councils, if the organization is dedicated exclusively to the social, cultural, educational, or economic development of Indians who for the most part live on reserves; and c) the duties of the employment 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. ... This requirement of Guideline 4 requires that the individual's duties of employment must be 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. First, it is questionable whether or not the duties of employment of employees working on the XXXXXXXXXX are in connection with the non-commercial activities of the band. ...

But for the existence of Canco, an Employee of Canco would not otherwise be regarded as an employee of the Canadian Contractor or of the non-resident builder in connection with the Contract. 6. ... Other Information To the best of your knowledge, none of the issues involved in this advance income tax ruling is: a. in an earlier return of Canco, an Employee or a related person; b. being considered or under assessment by a tax services office or taxation centre in connection with a previously filed tax return of Canco, an Employee or a related person; c. under objection by Canco, an Employee or a related person; d. before the courts, and no judgement has been issued which may be under appeal; or e. the subject of a ruling previously issued by the Directorate. ... Provided an Employee of Canco is resident in Canada in a taxation year, throughout any period of more than 6 consecutive months that commenced before the end of the year and included any part of the year, was employed by Canco, and performed all or substantially all of the duties of that employment outside Canada in connection with the Contract, the Employee will be entitled to deduct the Overseas Employment Tax Credit, subject to the limitations in the formula set out in subsection 122.3(1) of the Act. ...

Can a non-resident make an election under subsection 216(1) of the Act to file a return under Part I of the Act in connection with the rental income earned by a partnership which is allocated to another partnership and subsequently to its non-resident member? ... Can a Non-Resident make an election under subsection 216(1) of the Act to file a return under Part I of the Act in connection with the rental income earned by Partnership A which is allocated to Partnership B and subsequently to the Non-Resident? ... Therefore, a non-resident member of Partnership B can make an election under subsection 216(1) of the Act to file a return under Part I of the Act in connection with the rental income earned by Partnership A which is allocated to Partnership B and subsequently to the non-resident member. ...

7 March 2006 External T.I. 2005-0152041E5- Foreign Reporting- Life Insurance Policy Unedited CRA Tags 233.3 94.2 12.2 148 Principal Issues: Whether a particular foreign issued investment contract is a life insurance policy and must the investment be reported on the T1135 in connection with the foreign reporting requirements in section 233.2 of the Act. ... With respect to the taxation in Canada of income earned in connection with a life insurance policy, we note that the proposed foreign investment entity ("FIE") rules found in sections 94.1, 94.2, 94.3 and 94.4 of the Act may apply to the taxpayer's interest in the life insurance policy. ... As noted above, where proposed subsection 94.2(11) of the Act applies to deem the interest in the life insurance policy to be a participating interest in a non-resident entity, the taxation of income earned in connection with the life insurance policy would be determined with reference to the rules in proposed sections 94.1, 94.2, 94.3 and 94.4 of the Act. ...

Subsequently, on October 25, 2017 the Department of Finance released revised legislative proposals, followed on October 27 by Bill C-63 (“Bill C-63”), which expanded the scope of the tax-deferral mechanism of subsections 87(8.4) and (8.5) to also include joint elections made in connection with dispositions of certain taxable Canadian property (that is not treaty-protected property) that are interests in partnerships and interests in trusts. ... Pursuant to the October 25, 2017 draft proposals and Bill C-63, the above response would also apply for section 116 purposes in connection with valid joint elections that are filed in connection with partnership and trust interests. ...

Subsequently, on October 25, 2017 the Department of Finance released revised legislative proposals, followed on October 27 by Bill C-63 (“Bill C-63”), which expanded the scope of the tax-deferral mechanism of subsections 87(8.4) and (8.5) to also include joint elections made in connection with dispositions of certain TCP (that is not treaty-protected property) that are interests in partnerships and interests in trusts. ... Pursuant to the October 25, 2017 draft proposals and Bill C-63, the above response would also apply for section 116 purposes in connection with valid joint elections that are filed in connection with partnership and trust interests. ...

Reasons: The location of customers is relevant except where it can reasonable be considered that one of the main purposes for the establishment of the business-client relationship with the First Nation organization is to serve as a connection between the Indian’s business income and a reserve. 5-972173 XXXXXXXXXX Karen Power, C.A. (613) 957-8953 Attention: XXXXXXXXXX May 12, 1998 Dear Sirs: Re: Self-employed Income Earned by a Status Indian We are writing in response to your letter of August 11, 1997 wherein you requested our comments regarding the taxation of income earned by a self-employed status Indian. ... In such circumstances, in our view, it must be taken into consideration that where an arrangement creates an artificial connection between business income and a reserve, the arrangement will carry no weight as a connecting factor. Consequently, in the above-described situation, the weight that the on-reserve location of the customers would otherwise carry, as a connecting factor, will not be recognized if it can reasonably be considered that one of the main purposes for the establishment of the business-client relationship with the First Nation organization is to serve as a connection between the logger’s business income and a reserve, by acting as an intermediary between the logger and actual log buyers who are located off reserve. ...

The goal of the XXXXXXXXXX Our Comments Guideline 4 requires a) that the employer is resident on a reserve; b) that the employer is an Indian band which has a reserve, or a tribal council representing one or more Indian bands which have reserves, or an Indian organization controlled by one or more such bands or tribal councils, if the organization is dedicated exclusively to the social, cultural, educational, or economic development of Indians who for the most part live on reserves; and c) that the duties of the employment 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. ... XXXXXXXXXX The employment duties of each particular Indian employee of the XXXXXXXXXX would have to be considered to establish if they were in connection with the employer's (i.e., the XXXXXXXXXX) non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

There will be no common shares issued, authorized, reserved or sold by the Company (or a related company) at any time in connection with Units allocated under the Plan. The Company (or a related company) will not purchase any common shares at any time in connection with any Units allocated under the Plan. ... Additional Information To the best of your knowledge and the knowledge of the Company, none of the issues involved in this ruling request is being considered by a tax services office or taxation centre in connection with an income tax return already filed, and none of the issues is under objection or appeal. ...