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10 June 1991 Internal T.I. 91M06217 F- Overseas Employment Tax Credit Unedited CRA Tags 122.3, 122.3(1)(b)(i) Dear Sirs: This is in reply to your letter dated March 7, 1991 whereby you requested our opinion as to whether an employee would be considered to perform the duties of his employment in   24(1)  in connection with a contract under which the employer carries on business in    for the purposes of qualifying for the overseas employment tax credit provided under section 122.3 of the Income Tax Act (the "Act"). ... Our Comments An individual (employee) must have performed all or substantially all the duties of his employment in one or more countries other than Canada in connection with a contract under which the specified employer carried on business in such other country or countries with respect to the exploration for or exploration of petroleum, natural gas, minerals or other similar resources.  ... In order for us to reach a conclusive opinion on such a transaction, we could have to review the contract itself and its connection, if any, with Canco's acquisition of the 24(1)  In the event this hypothetical example becomes a contemplated transaction, any request for a technical interpretation should be in the form of a request for an advance income tax ruling in accordance with the Information Circular 70-6R2 dated September 28, 1990.  ...

7 June 1991 Income Tax Severed Letter- Overseas Employment Tax Credit Unedited CRA Tags 122.3 Dear Sirs: This is in reply to your letter dated March 7, 1991 whereby you requested our opinion as to whether an employee would be considered to perform the duties of his employment in XXX in connection with a contract under which the employer carries on business in XXX for the purposes of qualifying for the overseas employment tax credit provided under section 122.3 of the Income Tax Act (the "Act"). ... XXX Our Comments An individual (employee) must have performed all or substantially all the duties of his employment in one or more countries other than Canada in connection with a contract under which the specified employer carried on business in such other country or countries with respect to the exploration for or exploitation of petroleum, natural gas, minerals or other similar resources. ... In order for us to reach a conclusive opinion on such a transaction, we would have to review the contract itself and its connection, if any, with Canco's acquisition of the XXX. ...

The expressions "in connection with" and "with respect to" are considered to have very broad meanings such that the activities described in (a) to (f) above would appear to be qualifying activities. The activities that are engaged by the employers in connection with the XXXXXXXXXX, as described in (g) above, do not appear to qualify as qualifying activities. In the event that the employers’ activities consist of both qualifying and non-qualifying activities, it will be necessary to establish that the XXXXXXXXXX employees performed all or substantially all their duties in connection with the qualifying activities for them to be entitled to the OETC. ...

Finally, the employee'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. Given the nature of the employer, it is questionable whether the duties of employment of the employees are in connection with the non-commercial activities of the employer. It also seems unlikely that the duties of employment of the employees working for the Organization are in connection with activities carried on exclusively for the benefit of Indians who for the most part live on a reserve. ...

To qualify for the OETC, a Canadian resident 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 (or for the purpose of obtaining such a contract) under which the specified employer carried on business outside Canada with respect to the exploration for or exploitation of petroleum, natural gas, minerals or other similar resources, with respect to any construction, installation, agricultural or engineering project or with respect to an activity performed under contract with the United Nations; and (c) have performed all or substantially all the employment duties in connection with the contract outside Canada. ... During a period of absence from a work location outside Canada, an individual may take vacation time, consult with the specified employer in Canada or perform duties of employment in Canada and still remain eligible for the OETC provided that, throughout the period, substantially all of the individual's employment duties (90% or more) are performed outside Canada in connection with a qualifying activity of the employer. ... In general, the determination will be made by comparing the actual time an individual spent performing qualifying duties (duties performed in connection with a qualifying activity) to the total time the individual spent performing all employment duties during that period. ...

Reasons: The individual is a volunteer and is not remunerated for any services but is reimbursed for the cost of an internet connection. ... The particular individual was reimbursed for the cost of an Internet service connection that was used by him in connection with the volunteer services that he provided to the Institution. ... You have asked whether the reimbursement for the cost of the Internet service connection was required to be reported on Form T1204 by the payer. ...

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 (or for the purpose of obtaining such a contract) under which the specified employer carried on business outside Canada with respect to the exploration for or exploitation of petroleum, natural gas, minerals or other similar resources, with respect to any construction, installation, agricultural or engineering project or with respect to an activity performed under contract with the United Nations ("qualifying activity"); and (c) have performed all or substantially all the employment duties (done in connection with a contract described in (b) above) outside Canada. ... During a period of absence from a work location outside Canada, an individual may take vacation time, consult with the specified employer in Canada or perform duties of employment in Canada and still remain eligible for the OETC, provided that throughout the qualifying period substantially all of the individual's employment duties (90% or more) are performed outside Canada in connection with a qualifying activity of the employer. ... In general, the determination will be made by comparing the actual time an individual spent performing qualifying duties (duties performed in connection with a qualifying activity) to the total time the individual spent performing all duties during that period. ...

14 March 2007 External T.I. 2007-0227011E5- Education credit- course related to employment Unedited CRA Tags 118.6 Principal Issues: Two questions are posed: (1) Is a course taken in connection with one's job eligible for the education tax credit? ... For years prior to 2004, the former definition of "qualifying educational program" in the Income Tax Act excluded any program taken by a student: (a) during a period for which the student received income from an office or employment, and (b) in connection with, or as part of the duties of, that office or employment. ... This means that provided all other requirements are met, a course or program taken by an individual in connection with his or her employment is eligible for the education tax credit. ...

If the above exemption is not applicable, you are concerned with Revenue Canada's interpretation of the expression "in connection with" as used in such subparagraph. ... That subparagraph does not provide for an exemption from withholding tax where the payment is made in connection with the sale of property or the negotiation of a contract as does subparagraph 212(1)(d)(iii) of the Act. ... The expression "in connection with" would appear to have a broad connotation, however, as indicated in the case of Gene A. ...

Pursuant to Article 21, a Norwegian resident who carries on activities in Canada in connection with the exploration or exploitation of the seabed and subsoil and their natural resources is deemed to be carrying on a business in Canada through a permanent establishment or fixed base situated therein. We note that this provision only requires that the Norwegian resident carry on activities in connection with the exploration and exploitation of the natural resource of Canada, which in our view is a lower threshold than carrying on a business. However, those activities must be in connection with the exploration or exploitation of the seabed and subsoil and their natural resources. ...