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It is our view that a reasonable reading of the words of the provision indicates that it applies only to benefits which a person receives from the actual reorganization of the business and does not refer to a payment made on behalf of a shareholder in connection with the reorganization. ... In our view, a reasonable reading of subsection 15(1) indicates that it applies only to benefits which a person receives from the actual redemption, cancellation or acquisition and does not refer to a payment made on behalf of a shareholder in connection with the redemption, cancellation or acquisition. ...

A "resident's contribution" is defined in subsection 207.6(5.1) of the Act as: any part of a contribution made under an arrangement at a time when the arrangement would have been an RCA but for paragraph (l) of the RCA definition in subsection 248(1) of the Act as a. was not a "prescribed contribution"; and b. was made in respect of: (1) a period throughout which the employee was resident in Canada and- the employee's services were provided primarily in Canada for the employer or in connection with a business carried on in Canada by the employer; and (2) a period at the beginning of which- the employee had always been a resident of Canada before the period started; or- where the employee had been a non-resident at any ime before the period started and had become a member of the plan before the end of the month following the month the employee became a resident, the employee had been resident for 60 of the 72 preceding months. 5. ... Draft Regulation 8308.2 deals with the calculation of a PA of an employee where a resident employee has provided services outside of Canada which are not rendered primarily in connection with an employer's business carried on in Canada. ...

In those cases, it was the conclusion of the court that the term should be given the widest possible scope, attaching meanings such as "in relation to", "with reference to" and "in connection with". In their application to this case and the costs associated with the construction of the trailer by the patient's spouse for the specific purpose of transporting the "wheel chair" to locations where it will be needed for the benefit of the patient, it may be reasonably argued that the trailer is a device the existence of which is "in relation to", in connection with" and "with reference to" the wheel chair. ...

Generally, legal fees are deductible where they are incurred in connection with normal activities, transactions or contracts incidental or necessary to the earning of income from a business or property. As regards the legal fees incurred by the taxpayer to defend the action for foreclosure of his personal property, as these fees were incurred in connection with the enforcement of the personal guarantees provided by the taxpayer, in our view, they are not deductible as a current expense or an allowable business investment loss. ...

Finally, the individual's duties of the 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. ... Such a connection is necessary in order to benefit from the tax exemption in section 87 of the Indian Act and paragraph 81(1)(a) of the Income Tax Act. ...

It may not always be easy to decide whether an expense has so arisen but it seems to me that the words "in the course of" in section 11(1)(cb) are not a reference to the time when the expenses are incurred but are used in the sense of "in connection with" or "incidental to" or "arising from" and refer to the process of carrying out or the things which must be undertaken to carry out the issuing or selling or borrowing for or in connection with which the expenses are incurred. ...

The description for Amount E in the definition of "cumulative eligible capital" in subsection 14(5) the Act has a "mirror image test" to determine whether an amount which a taxpayer has received or may become entitled to receive in connection with a business, as a result of a disposition of property, is proceeds of the disposition of eligible capital property, resulting in an "eligible capital amount" (EC amount). ... In other words, a taxpayer disposing of property in connection with a business looks in the mirror to see whether, if the taxpayer were instead purchasing the property, its cost would qualify as an ECE of the taxpayer for the same business. ...

Our Comments The following comments relate to expenses incurred in connection with an investment portfolio where the investments are capital property rather than inventory. ... However, expenditures (subscriptions to financial magazines and newspaper, advice on buying or selling a specific share or security, and the administration or management of shares or securities) incurred in connection with a portfolio of investments have consistently been regarded by the courts to be non-deductible capital expenditures by virtue of paragraph 18(1)(b) of the Act as they relate to the capital assets (i.e., the investment of capital) rather than the income earning process. ...

You are concerned about the situation where an individual became a bankrupt on July 1, 1998, in circumstances where the following medical expenses had not been claimed on a prior return: (a) $4,000 paid on December 1, 1997 (b) $5,000 paid on June 1, 1998 (c) $6,000 paid on December 31, 1998 In connection with this example, you have referred to TOM 40(10)5.32 which states the following: “The medical expenses will be allowed based on the period for which the expenses were paid. ... In connection with the pre-bankruptcy period and the post-bankruptcy period, section 118.95 provides rules to ensure that certain non-refundable tax credits are either subject to calculation on a pro rata basis (i.e., sections 118 (other than subsection 118(3) of the Act), 118.3, 118.8, and 118.9 of the Act)), or based on amounts (i.e., sections 118.1, 118.2, 118.5, 118.6, and 118.7 of the Act) in respect of the pre-bankruptcy period and/or the post-bankruptcy period of the bankrupt to which such an amount can reasonably be regarded as being wholly applicable to the taxation year. ...

Leung 957-2115 990716 Attention: XXXXXXXXXX Overseas Employment Tax Credit ("OETC") XXXXXXXXXX We are writing in response to your memorandum of March 17, 1999 in which you requested our view as to whether the employees of XXXXXXXXXX who are resident in Canada are eligible for the OETC in the following situation. xxxxxxxxxx You requested our view as to whether XXXXXXXXXX was engaged in qualifying activities ("Qualifying Activities") referred to in subparagraph 122.3(1)(b)(i) of the Income Tax Act (the “Act") for the period from XXXXXXXXXX and, if the answer is positive, whether all of substantially all of the duties performed by the employees at issue were in connection with a contract under which XXXXXXXXXX carried on business outside Canada in respect of such Qualifying Activities. ... In the case at hand, it appears that not all or substantially all of the duties of employment performed outside Canada by the employees at issue were in connection with a contract under which XXXXXXXXXX carried on business outside Canada in respect of Qualifying Activities. ...