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It is your view that the payment is in respect of general damages which is described in paragraph 2 of interpretation bulletin IT-365R "Damages, Settlements and Similar Receipts" as being a non-taxable receipt when received in connection with a personal injury. ... Clearly, the general damages resulting from such an event (as listed in paragraph 2 of the bulletin) normally have no connection with employment or any other income earning activity and are therefore not taxed under any provision of the Income Tax Act. ...

They import such meanings as "in relation to", "with reference to" or "in connection with". The phrase "in respect of" is probably the widest of any expression intended to convey some connection between two related subject matters. ...

The individual cannot have been employed or engaged by "the employer" in the same year, otherwise than as a volunteer, in connection with the performance of any of the duties described above, or similar duties. ...

Furthermore, it is a question of fact whether LP's substantial borrowing was in connection with the permanent establishment (if LP has such a permanent establishment) that LP has in the U.S. for the purposes of the second sentence in paragraph 6 of Article XI of the Canada-United States Income Tax Convention (the "Convention"). ... Generally, under these circumstances, the Canada Revenue Agency ("CRA") is of the opinion that the second sentence of paragraph 6 of Article XI of the Convention would not apply to re-source such interest to the U.S. unless the CRA is convinced that (i) investing in non-Canadian securities constitutes a business carried on by LP through a permanent establishment in the U.S., (ii) the debt owing to the U.S. financial institution was incurred in connection with such permanent establishment, and (iii) the interest paid on such debt was borne by such permanent establishment. ...

August 5, 2004 Dear XXXXXXXXXX: Re: Work Space in Home Expenses We are writing in reply to your letter of March 5, 2004 requesting our views in connection with the restrictions provided in the Income Tax Act (the "Act") regarding the deduction of expenses that relate to work space in a home. ... Where an individual was employed in a year in connection with the selling of property or negotiation of contracts for the individual's employer, a deduction pursuant to paragraph 8(1)(f) of the Act may be claimed in respect of amounts expended in the year for the purpose of earning the income from the employment, provided the requirement in subsection 8(10) of the Act is met (Form T2200) and the following conditions are satisfied: (a) the contract of employment required the employee to pay the expenses so incurred, (b) the employee was ordinarily required to carry on the duties of employment away from the employer's place of business, (c) the employee was remunerated in whole or in part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and (d) the employee was not in receipt of an allowance for travel expenses that was excluded from income by virtue of subparagraph 6(1)(b)(v), to the extent that such amounts were not (e) outlays, losses or replacements of capital or payments on account of capital, except capital cost allowance and interest deductible under paragraph 8(1)(j), (f) outlays or expenses made or incurred for club dues or the use of recreational facilities that would, by virtue of paragraph 18(1)(l), not be deductible if the employment were a business carried on by the salesperson or (g) payments which reduced the amount of the standby charge that was required to be included in income in the year. ...

August 5, 2004 Dear XXXXXXXXXX: Re: Work Space in Home Expenses We are writing in reply to your letter of March 8, 2004 requesting our views in connection with the restrictions provided in the Income Tax Act (the "Act") regarding the deduction of expenses that relate to work space in a home. ... Where an individual was employed in a year in connection with the selling of property or negotiation of contracts for the individual's employer, a deduction may be claimed in respect of amounts expended in the year for the purpose of earning the income from the employment, provided the requirement in subsection 8(10) of the Act is met (Form T2200) and the following conditions are satisfied: (a) the contract of employment required the employee to pay the expenses so incurred, (b) the employee was ordinarily required to carry on the duties of employment away from the employer's place of business, (c) the employee was remunerated in whole or in part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and (d) the employee was not in receipt of an allowance for travel expenses that was excluded from income by virtue of subparagraph 6(1)(b)(v), to the extent that such amounts were not (e) outlays, losses or replacements of capital or payments on account of capital, except capital cost allowance and interest deductible under paragraph 8(1)(j), (f) outlays or expenses made or incurred for club dues or the use of recreational facilities that would, by virtue of paragraph 18(1)(l), not be deductible if the employment were a business carried on by the salesperson or (g) payments which reduced the amount of the standby charge that was required to be included in income in the year. ...

Reasons: The wording of the definition of a RCA in subsection 248(1) of the Act requires that the plan or arrangement be funded in connection with benefits that are to be, or may be, received or enjoyed on, after or in contemplation of a substantial change in services rendered, retirement or loss of employment. ... Our Comments Subject to certain listed exclusions, an RCA is defined in subsection 248(1) of the Act as a plan or arrangement under which contributions are made by an employer or former employer of a taxpayer to another person (a "custodian") in connection with benefits that are to be or may be received or enjoyed by any person on, after or in contemplation of any substantial change in the services rendered by the taxpayer, the retirement of the taxpayer, or the loss of an office or employment of the taxpayer. ...

This "statutory arrangement" is deemed to be an RCA and all contributions made to it after it was established, as well as all property that can reasonably be considered to derive from those contributions, are deemed to be property held in connection with the RCA and not in connection with the existing EBP. ...

October 15, 2004 Dear XXXXXXXXXX: Re: Principal Residence We are writing in reply to your email of May 26, 2004 requesting our views in connection with the availability of the principal residence exemption under the Income Tax Act (the "Act") in a situation where a residence is partially used for rental purposes. ... You are concerned about the owner's ability to access the principal residence exemption provided in paragraph 40(2)(b) of the Act in the above circumstances and ask whether the owner of the residence was entitled to claim any deduction in connection with the cost of replacing the roof. ...

November 1, 2004 Dear XXXXXXXXXX: Re: Bankruptcy and Ontario Tax Reduction ("OTR") We are writing in reply to your enquiry of June 28, 2004, requesting our comments in connection with the effect of a bankruptcy on the calculation of an individual's OTR. More specifically, you ask for our views in connection with an individual's entitlement to the OTR in the calendar year during which the individual becomes a bankrupt. ...