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In our opinion a finders fee paid to a non-resident for services rendered in connection with a sale of property would generally be subject to the withholding of Part XIII tax pursuant to clause 212(1)(d)(iii)(C) of the Act where the finder's fee is based on profits from the sale. Furthermore, we are of the view that the phrase "but not including a payment for services performed in connection with the sale of property or the negotiation of a contract" in subparagraph 212(1)(d)(iii) would not exempt such a finder's fee from Part XIII tax unless the non-resident is directly involved in the sales activity (e.g. where the non-resident sells property of the Canadian payor and receives a commission therefore). ...

11 October 1978 Income Tax Severed Letter Attention XXXX October 11, 1978 Dear Sirs: Re: Mortgage Investment Corporations This is in reply to your letter of September 26, 1978 in connection with funds borrowed to finance the operations of a mortgage investment corporation. ... Initially, we should state that Interpretation Bulletin IT-239R is specifically directed towards the deductibility of capital losses, and the comments in paragraph 8 thereof in connection with the deductibility of interest are not a statement of general policy but are intended to apply solely to accomodate those situations involving a shareholder and his closely held corporation, where the reason for the borrowing and relending is to enable the corporation to overcome financial difficulties. ...

It is our view that where the Canadian cable TV companies pick up distant signals which are transmitted from films or video tape, any payments made in respect of the retransmissions of such signals will fall within the wording of paragraph 212(5)(b) of the Act as payments for the use of "a film, video tape or other means reproduction for use in connection with television". In the case where live broadcasting of a sporting or other events are retransmitted, we are of the view that such payments will fall within the words "or other means of reproduction for use in connection with television" used in paragraph 212(5)(b) of the Act. ...

Subparagraph 3(d) of article XI the Convention provides that interest arising in a Contracting State shall be exempt from tax in that State if: "the interest is beneficially owned by seller who is a resident of the other Contracting State and is paid by a purchaser in connection with the sale on credit of any equipment, merchandise or services, except where the sale is made between persons dealing with each other not at arm's length;" You have asked for our views as to whether the word "seller" in the above mentioned provision can be interpreted to include the assignees of the seller who hold the purchase money paper created in connection with "a sale on credit of equipment, merchandise or services" made at arm's length if a) the assignment is contemporaneous with or subsequent to such a sale, or b) the assignment is made with or without recourse to the seller/assignor by the assignee. ...

Short (613) 957-2134 19(1) November 6, 1989 Dear Sirs: Re: Automobile Allowances This is in reply to your letter dated July 14, 1989, wherein you have requested an interpretation of subparagraph 6(1)(b)(v) and paragraph 18(1)(r) of the Income Tax Act (the "Act") in connection with the following situation: A commission based employee receives an automobile allowance that is in excess of 27 cents for the first 5,000 kilometres and 21 cents for the remaining kilometres. ... By virtue of subparagraph 6(1)(b)(v) of the Act, a reasonable allowance for travelling expenses received by an employee from his employer in respect of a period when he was employed in connection with the selling of property or negotiating of contracts for his employer, is excluded from employment income. ...

You have requested an advance income tax ruling with respect to the taxability of legal and accounting fees paid by XXXX in connection with charges and being laid by Revenue Canada, Taxation against XXXX under the authority of section 242 of the Income Tax Act (the "Act") in the hands of, XXXX as a benefit under either paragraph 6(1)(a), subsection 15(1) of alternatively, subsection 246(1) of the Act. ... With respect to your request for an opinion regarding payments of legal and accounting fees already made, we make reference to Interpretation Bulletin IT-99R3- Legal and Accounting Fees, which sets out at paragraph 19 the Department's position with respect to fees incurred in connection with a prosecution under section 239 of the Act. ...

In that situation you stated that Canada would be taxing income from the use of Canadian situs property which has a clear connection to Canada. Since there is no clear connection with Canadian property in the subsection 15(1) situation, you are of the view that the logic of Canada imposing any kind of tax appears far more tenuous. ...

All contributions made under the EBP after the establishment of the Statutory Arrangement and all property that can reasonably be considered to derive from those contributions are deemed to be property held in connection with the Statutory Arrangement and not in connection with the Existing Arrangement. ...

., would generally be considered to have acquired control of CANCO for the purposes of subsection 111(5) of the Act, unless there is definitive evidence that they do not have sufficient common connections or business interests to, and in fact do not, act in concert to control CANCO. Similarly, when there has been a change in control of a shareholder which is a member of a group of shareholders which has the legal ability to control the corporation, as in part (c) of your query, control of the corporation will be considered to have been acquired by the person who comprise that group or who ultimately control a shareholder of that group unless there is definitive evidence that those persons do not have sufficient common connections or business interests to, and in fact do not, act in concert to control the corporation. ...

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. ...