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Reasons: In order for paragraph 110.7(1)(a) of the Act to apply, there must be a connection between the actual travelling expenses incurred by a taxpayer or a member of the taxpayer's household and the amounts paid by a taxpayer's employer to defray those costs. ... Generally, the deduction in respect of employee travel benefits provided in paragraph 110.7(1)(a) of the Act offsets the income inclusion in respect of benefits provided by an employer to an employee or the employee's family with respect to trips made for the purpose of obtaining necessary medical services not available locally or with respect to traveling expenses in connection with not more than two other trips per year. ... " In our view, for purposes of paragraph 110.7(1)(a) of the Act, there must be a connection between the actual traveling expenses incurred by a taxpayer or a member of the taxpayer's household and the amounts paid by the taxpayer's employer to defray those costs, in order for the amounts to be "...in respect of travel expenses incurred by the taxpayer... ...

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. ...

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. ...

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. ...

Our Comments Reimbursements or awards for legal fees in connection with the collection or establishing a right to a retiring allowance: Paragraph 56(1)(l.1) of the Income Tax Act (the "Act") requires a taxpayer to include in computing income amounts received as an award or reimbursement of legal expenses paid to collect or establish a right to a retiring allowance. ... Reimbursements or awards for legal fees in connection with the collection or establishing a right to income from employment: Reimbursements or awards for legal fees in connection with the collection or establishing a right to income from employment are included in income from an office or employment by virtue of paragraph 6(1)(j) of the Act. ...

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. ...

As you know Guideline 4 requires that: "The employer is resident on a reserve; and 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 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" With respect to the term "employer is resident on a reserve", satisfaction of this element is always of some concern where the head office of an organization is located on a reserve but its main place of business is located off 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. ...