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Principal Issues: Interpretation of phrase "restructuring of debt in connection with a proceeding commenced in a court in Canada before February 22, 1994" as that phrase is used in the draft legislation to amend section 80. Position TAKEN: Restructuring of debt can occur subsequent to court proceeding provided it is in connection with that court proceeding which commenced prior to Feb. 22, 1994. ... Any negotiated settlement and restructuring, that is in connection with that court proceeding, could occur subsequent to February 22, 1994. ...

Principal Issues: Are minimum amounts that are paid to employees, for the use of a motor vehicle in connection with the duties of an office or employment, taxable benefits where the amount is not based solely upon a per-kilometer calculation? ... Subparagraph 6(1)(b)(x) of the Act deems the allowance not to be reasonable if the measurement of the use of the vehicle is not based solely on the number of kilometres for which the vehicle is used in connection with or in the course of the office or employment. Where a minimum amount is paid for a round trip that is not based solely on kilometers used, it would have to be determined whether this amount (even when it is a nominal amount) is paid to employees to compensate them for the actual expenses incurred in using their motor vehicle in connection with the duties of the office or employment for any given day. ...

Furthermore, it is our view that the term "in connection with television" is very broad and would encompass both videotapes used for private (home) use as well as videotapes used in television broadcasting. It should be noted that the Federal Budget of February 10, 1988 proposes to amend subsection 212(5) of the Act to add the words "or other means of reproduction" in paragraph 212(5)(b) between the words "videotape" and "for use in connection with television". ... We would also point out that the Second Protocol of the Canada-United Kingdom Income Tax Convention amended paragraph 4 of Article XII by adding the word "broadcasting" after the phrase "for use in connection with television". ...

Specifically, you requested our views whether the loan described above would be considered, for purposes of paragraph 149(4)(d) of the Act, a debt incurred in connection with the purchase and sale of investments. ... In any specific case the determination as to whether debts are incurred "in connection with" the purchase and sale of investments is a question of fact to be determined on the basis of all the details in that case. In our view the words "in connection with" contemplate a direct relationship between the incurring of the debt and the purchase and sale of investments. ...

Officials of the Department of Finance advised us that during the Canada-United States negotiations it was agreed that the words "for use in connection with television" should be restricted. ... Finance officials were primarily concerned with television broadcasting, and were prepared to give up the right to tax royalties paid in connection with the rental of video cassettes for private viewing. ... Given this background and the fact that the Second Protocol to the Canada-United Kingdom Income Tax Convention amends paragraph 4 of Article XII by adding the word "broadcasting" after the phrase "for use in connection with television" it can be concluded that the same intention should be ascribed to the relevant words in the United States Convention. ...

Specifically, you requested our views whether the loan described above would be considered, for purposes of paragraph 149(4)(d) of the Act, a debt incurred in connection with the purchase and sale of investments. ... In any specific case the determination as to whether debts are incurred "in connection with" the purchase and sale of investments is a question of fact to be determined on the basis of all the details in that case. In our view the words "in connection with" contemplate a direct relationship between the incurring of the debt and the purchase and sale of investments. ...

Specifically, you requested our views whether the loan described above would be considered, for purposes of paragraph 149(4)(d) of the Act, a debt incurred in connection with the purchase and sale of investments. ... In any specific case the determination as to whether debts are incurred "in connection with" the purchase and sale of investments is a question of fact to be determined on the basis of all the details in that case. In our view the words "in connection with" contemplate a direct relationship between the incurring of the debt and the purchase and sale of investments. ...

Specifically, you requested our views whether the loan described above would be considered, for purposes of paragraph 149(4)(d) of the Act, a debt incurred in connection with the purchase and sale of investments. ... In any specific case the determination as to whether debts are incurred "in connection with" the purchase and sale of investments is a question of fact to be determined on the basis of all the details in that case. In our view the words "in connection with" contemplate a direct relationship between the incurring of the debt and the purchase and sale of investments. ...

Concerning the "connection standard", Canadian case law, albeit not specifically dealing with the interpretation of paragraph XXIX-A(3), suggests that the expression "in connection with" has a broad connotation, although not as wide as the expression "in respect of". We are of the view that in order for an item of income to meet the "connection standard", there should be a strong connection between it and the US active trade or business. ... The last two assertions rely on an interpretation of the "connection standard" that allows it to be met based on either a "use test" or a "funding approach". ...

14 December 2011 Internal T.I. 2011-0424221I7- copyright music Unedited CRA Tags 212(1)(d)(vii); 212(5) Principal Issues: Whether a royalty fee paid by a Canadian resident to a non-resident in respect of copyright music that has been incorporated into a video and used in connection with television in Canada is subject to Part XIII tax? ... Views of the CRA Field Officer which raised the issue The field office raised the issue of whether or not this payment would be taxable in accordance with subsection 212(5) of the Act as the copyright music has been incorporated into a video and used in connection with television in Canada. ... Subsection 212(5) of the Act reads as follows: "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. ...