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It is our general position that the               following two conditions must be met in order for               payments for any services provided in connection               with the use of computer software not to be               considered part of the software license fee which               is subject to Canadian withholding tax at source:                a)   The amount being paid for services must be                    defined in the contract and the payment for                    such services must be optional.  ...

How- ever, in the cases where the person paying the interest has in a Contract- ing State a permanent establishment in connection with which the indebted- ness on which the interest was paid was incurred, and such interest is borne by the permanent establishment, then such interest is deemed to arise in the Contracting State in which the permanent establishment is situated. ...

The details of the situation prompting your enquiry pertain to a specific corporate taxpayer whose 1978 tax return has been reassessed in connection with the above-mentioned paragraphs. ...

The details of the situation prompting your enquiry pertain to a specific corporate taxpayer whose 1978 tax return has been re- assessed in connection with the above-mentioned paragraphs. ...

In this connection, the landmark decision of Thorson P., in MNR v. Taylor, 56 DTC 1125, is instructive. ...

MacDonald Tel/ (613) 995-0051 December 16, 1984 Dear Sirs: Re: Employee Compensation & Benefit Plans This letter is in reply to yours of September 20, 1984, in which you requested the Department's opinion concerning several issues in connection with a health care expense plan (the 'Plan') whereby the employer would reimburse those employees who are members of the Plan on account of certain medical expenses to the extent of the each employee's coverage under the Plan. ...

In connection with this review, we are requesting the views of our Tax Policy division. ...

We also confirm our recent telephone conversations in connection with the matters raised in your letters. ...

As set out in subparagraph 115(2)(e)(i), this amount is: "(i) any remuneration in respect of an office or employment that was paid to him directly or indirectly by a person resident in Canada and was received by the non-resident person in the year, except to the extent that such remuneration is attributable to the duties of an office or employment performed by him in a country other than Canada and (A) is subject to an income or profits tax imposed by the government of a country other than Canada, or (B) is paid in connection with the selling of property, the negotiation of contracts or the rendering of services for his empl- oyer, or a foreign affiliate of his employer, or any other person with whom his employer does not deal at arm's length, in the ordin- ary course of a business carried on by his employer, that foreign affiliate or that person," While it appears that either clause 115(2)(e)(i)(A) or (B) would normally be applicable, the issue is whether the duties of the office or employment are performed "in a country other than Canada". ...

A ruling request must also contain a statement as to whether any of the issues involved are to the best of the taxpayer's knowledge being considered by a District Office and/or Taxation Centre in connection with a tax return already filed, or if any of the issues are under objection. ...