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The term "exploitation" is found in clause 122.3(1)(b)(i)(A) of the Income Tax Act (the "Act"), which reads, in part, as follows (underline added): 122.3 (1) Where an individual is resident in Canada in a taxation year and, throughout any period of more than 6 consecutive months that commenced before the end of the year and included any part of the year (in this subsection referred to as the "qualifying period") (a) was employed by a person who was a specified employer, other than for the performance of services under a prescribed international development assistance program of the Government of Canada, and (b) performed all or substantially all the duties of the individual's employment outside Canada (i) in connection with a contract under which the specified employer carried on business outside Canada with respect to (A) the exploration for or exploitation of petroleum, natural gas, minerals or other similar resources, (B) any construction, installation, agricultural or engineering activity, or (ii) (C) any prescribed activity, or for the purpose of obtaining, on behalf of the specified employer, a contract to undertake any of the activities referred to in clause (i)(A), (B) or (C), there may be deducted, from the amount that would, but for this section, be the individual's tax payable under this Part for the year, an amount equal to that proportion of the tax otherwise payable under this Part for the year by the individual that the lesser of... ...

Generally, paragraph 18(1)(p) restricts the deduction of outlays or expenses made or incurred by a corporation in a taxation year for the purpose of gaining or producing income from a personal service business to: (i) salary, wages or other remuneration paid to an incorporated employee, (ii) the cost to the corporation of providing any benefit or allowance to an incorporated employee, (iii) any amount expended by the corporation in connection with selling property or negotiating contracts if the amount would have been deductible in computing the income from an office or employment of an incorporated employee if it had been expended by the incorporated employee, and (iv) amounts paid for legal expenses incurred by the corporation in collecting amounts owing for services rendered. ...

Paragraph 81(4)(b) of the Act provides that if the Minister of National Revenue so demands, the Employer must certify in writing that the individual was in the year a person described in paragraph 81(4)(a) and that the individual was at no time in the year employed or otherwise engaged by the Employer, otherwise than as a volunteer, in connection with the performance of any of the specified volunteer services or similar duties. ...

In particular, it is necessary to determine whether the amount in question is paid to the Taxpayer in connection with the rendering of services for the Employer in the ordinary course of business. ...

Our Comments: An RCA is defined in subsection 248(1) of the Act as generally being an arrangement under which payments are made by an employer of a taxpayer to a custodian in connection with benefits that are to be received by a 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, subject to certain listed exclusions. ...

The fact that fish may be caught within XXXXXXXXXX in and of itself doesn't create a connection to a reserve. ...

We acknowledge receipt of further correspondence from Joanne Perrin in connection with this request. ...

In connection with acquiring ownership to computer software, in our view, software is owned by the creator of the software or by a person who acquires the software in an outright sale. ...

We are of the view that the environmental clause pursuant to paragraph (d) of the will (a copy of it submitted to us) also gives enough power to the trustees under the Trust to encroach on capital of the Trust in the event that they would have to comply with the environmental laws and regulations to prevent any actual or potential environmental problems in connection with any property held in the estate. ...

Dodd Rick Gallichan 957-8954 Information Returns Section 982945 Partnership Information Return- Late Filing Penalty We are writing in reply to your November 12, 1998 facsimile transmission concerning the XXXXXXXXXX (the “Partnership”) and the late filing penalty assessed in connection with its annual partnership information return. ...