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The loan is incurred in connection with the operation of the Canadian company's permanent establishment in the netherlands and the interest is borne by the permanent establishment. ...

O'Neil Audit Review Division RE Transfer of "Nets and Traps" under subsection 85(1) I.T.A. (7-2240)----------------------------------- This is in reply to your memorandum of November 16, 1982 in connection with the transfer by a fisherman of his "Nets and Traps" to a corporation using the provisions of subsection 85(1) of the Income Tax Act ("Act"). ...

(ii) The contract in connection with which an employee performs duties in a foreign country must be one under which the specified employer CARRIED ON BUSINESS in the foreign country. ...

In this connection, we refer you to paragraph 22 of Interpretation Bulletin IT-428, a copy of which is enclosed for your information. ...

It is anticipated that the Offering Expense Fee will approximate the issue expenses (other than XXXXXXXXXX) actually incurred and paid to third parties in connection with the offering of the Class A Units. ... The amount of the Loan Arrangement Fee, as described in paragraph 21 above, incurred in connection with a Unit Loan will be deductible by the Class A Unitholder in accordance with the provisions of subparagraph 20(1)(e)(ii) of the Act, to the extent that such amount is reasonable in the circumstances. ... The amount of the Offering Expense Fee, as described in paragraph 24 above, incurred in connection with the issuance of the Class A Units will be deductible by the Offering Partnership in accordance with the provisions of subparagraph 20(1)(e)(i) of the Act, to the extent that such amount is reasonable in the circumstances. ...

B) "Production Costs" for a Fiscal Year with respect to a "Property", where "Property" is defined to mean the aggregate properties that XXXXXXXXXX designates as a single property for determining the Royalty, without duplication and using the cash method of accounting, and whether capital or non-capital in nature, will mean the sum of the costs listed in subsection (a) below but reduced by the amounts set forth in subsection (b) below, determined separately for each Property: (a) the following amounts shall be included in the calculation of Production Costs to the extent the same relate to the Property, and periods of time after the effective date of the Royalty for the Property: i) to the extent a Property is subject to operating agreements with a third party(ies), all operating and all other costs and expenses attributable and allocable to the Property incurred by XXXXXXXXXX and properly chargeable under the applicable operating agreement; ii) to the extent a Property is not subject to an operating agreement, all operating and all other costs and expenses attributable and allocable to the Property incurred by XXXXXXXXXX and chargeable in accordance with the appropriate accounting procedure; iii) where there are Excess Production Costs outstanding at the beginning of a Fiscal Year, an amount computed by applying a rate of interest that is equal to a commercial rate of interest on the amounts of such Excess Production Costs; iv) to the extent not excluded or deducted in the determination of Gross Royalty Revenues (and to the extent not separately assessed against a Royalty or XXXXXXXXXX Share of Production burdened by such Royalty), all general property (ad valorem), production, severance, sales, use, excise, rental, value added, gathering and windfall profit taxes and other similar taxes (whether state, local, provincial, federal or otherwise) assessed, imposed or levied on or in connection with or allocable to the Property or the production therefrom or equipment (except to the extent sold) thereon (to the extent of the interest therein attributable to Property) or against XXXXXXXXXX as owner of the Property; (XXXXXXXXXX Share of Production with respect to a Property is defined as XXXXXXXXXX share of all petroleum substances which may be produced from, and which shall accrue and be attributable to, such Property, determined as if the Royalty had not been granted); v) all amounts attributable to the Property borne by or charged to XXXXXXXXXX on arms-length terms (whether by an affiliate or a non-affiliate) as any of the following: (A) payments made to others in connection with the drilling or deferring of drilling of any well on the Property or lands in the vicinity of any Property (including, without limitation, dry hole and bottom hole payments and payments made to others for refraining from drilling an offset well) or in connection with any cost adjustment with respect to any well and/or leasehold equipment upon unitization of any of the Property; (B) bonuses and rentals; (C) rent and other consideration paid for use of or damage to the surface; and (D) payments to others with respect to overproduction of gas, whether accrued before or after the effective date of the Royalty conveyance, unless such overproduction was escrowed and excluded from Gross Royalty Revenues; vi) all other costs and expenses borne by or charged to XXXXXXXXXX on arms-length terms (whether by an affiliate or a non-affiliate) which are attributable and allocable to the Property for compressing, treating, separating, dehydrating, processing, storing, transporting, delivering, selling or marketing XXXXXXXXXX Share of Production, including, without limitation: (A) costs of making XXXXXXXXXX Share of Production ready or available for market, and (B) the cost of construction of gathering lines, tanks, meters and other production and delivery facilities on the Property; vii) general and administrative expenses (other than those treated as acquisition costs) allocated annually among all Properties in the proportion that the net book value of a given Property as of the end of the year for which an allocation is being made bears to the net book value of all Properties at the end of such year; viii) a quarterly management fee payable to XXXXXXXXXX based on the net book value of the Royalty burdening a Property as of the last day of the quarter; ix) all costs (including outside legal, accounting, and engineering services) for prosecuting, defending, investigating or settling litigation, administrative proceedings, and other claims and payments made in respect of judgements, penalties and other liabilities not paid for or reimbursed by way of insurance; x) all insurance premiums related to the insuring of the Property or any facility, item of equipment or other depreciable property relating to the Property; xi) any refunds required to be made by XXXXXXXXXX of all or any part of the sales price for any of XXXXXXXXXX Share of Production; xii) amounts of principal and interest and other costs of financing paid by XXXXXXXXXX for the year relating to borrowed funds, including funds borrowed to fund Production Costs, to fund the acquisition of tangible depreciable property or to fund development activities, and including payments of principal and interest thereon to XXXXXXXXXX; xiii) an amount equal to the product obtained when the combined rate of income tax applicable in the year under Parts I and XIV of the Act is multiplied by the amount, if any, by which 1) the amount that is included in the income of XXXXXXXXXX or denied as a deduction in computing the income of XXXXXXXXXX by reason of paragraph 12(1)(o) or 18(1)(m) of the Act, as the case may be, and that is in respect of production from the Property that is the subject of the Royalty exceeds 2) the amount allowed to the working interest owner by reason of paragraph 20(1)(v.1) of the Act with respect to the Property; and (xiv) amounts payable in respect of Crown royalties, freehold royalties and any other royalties to which the property is subject (other than the Royalty) to the extent not excluded from Gross Royalty Revenues; but not including (1) costs and expenses incurred in connection with drilling, testing, completing and equipping any development, injection or salt water disposal well, including all expenses that are capitalized for U.S. federal income tax purposes, and all costs of equipment and other depreciable property which must be capitalized for U.S. federal income tax purposes, except that amounts referred to in this clause (1) do not include costs associated with production and ordinary operating activities; (2) any amount which has also been used to reduce the amount of XXXXXXXXXX Share of Production and/or Gross Royalty Revenues; (3) any interest, premiums, fees or similar charges arising out of borrowings not used on or otherwise related to the Property; (4) all costs and expenses incurred in connection with an exploratory well; and (5) the costs incurred by XXXXXXXXXX in acquiring the Properties that are the subject of the Royalty. ... To the best of the knowledge of XXXXXXXXXX and the Limited Partners of XXXXXXXXXX and your knowledge, none of the issues involved in this ruling request: i. is in an earlier return of XXXXXXXXXX or a limited partner of an XXXXXXXXXX or a related person; ii. is being considered by a tax services office or taxation centre in connection with a previously filed tax return of XXXXXXXXXX or a Limited Partner of an XXXXXXXXXX or a related person; iii. is under objection by XXXXXXXXXX or a Limited Partner of an XXXXXXXXXX or a related person; or iv. is before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired. ... The procedures to be followed in connection with reduced withholding taxes are as follows:- In order to ensure whether a particular trust or organization qualifies for exempt status under paragraph 2 of Article XXI of the Treaty or under paragraph 1 of Article XXI of the Treaty, as the case may be, and to determine the withholding obligation, the procedures in paragraph 78(d) (in respect of U.S. ...