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To the best of your knowledge and that of the taxpayers involved, none of the issues involved in this ruling are being considered by a Tax Services Office or a Taxation Centre in connection with a tax return already filed, and none of the issues are under appeal or objection. ... Offering expenses of approximately $XXXXXXXXXX, to be incurred in connection with issuing or selling Partnership Units, will be paid by the Partnership. ... XXXXXXXXXX will provide administrative services to the Partnership which will include: (a)maintaining financial accounts in connection with the business of the Partnership; (b)preparing and filing all necessary reports and filings required by applicable corporate, partnership and securities legislation; (c)paying distributions to Limited Partners; (d)arranging for the payment of Sales Commissions to dealers in connection with the distribution of Units by the Partnership; and (e)providing all other general day-to-day activities as may be required for the purpose of maintaining the business and operation of the Partnership. ...

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. ... That is, there must be a clear connection between the amount sought to be deducted and the issuance of the shares. Paragraph 16 of IT-341R3 where a corporation has expenses that are incurred in the course of an issuance or sale of shares in the capital stock of the corporation the following expenses would be deductible in the year in which they are incurred: (a) legal fees in connection with the preparation and approval of a prospectus pertinent to the issuance or sale of shares, units, or interests; (b) accounting or auditing fees in connection with the preparation of reports on financial statements and statistical data for inclusion in, or for presentation with, the prospectus; (c) the cost of printing the prospectus, new share, unit, or interest certificates, etc; (d) registrars' or transfer agents' fees; and (e) filing fees charged by any public regulatory body which requires the filing of a prospectus for acceptance The pre-amble to subsection 20(1) provides as follows: 20(1) Notwithstanding paragraphs 18(1)(a), (b) and (h), in computing a taxpayer's income for a taxation year from a business or property, there may be deducted such of the following amounts as are wholly applicable to that source of such part of the following amounts as may reasonably be regarded as applicable thereto: (emphasis added) Subsection 138(2) of the Act provides that the income or loss of a multinational life insurer from carrying on an insurance business shall be computed with reference only to insurance businesses carried on in Canada: (2) Notwithstanding any other provision of this Act, where a life insurer resident in Canada carries on an insurance business in Canada and in a country other than Canada in a taxation year (a) its income or loss for the year from carrying on an insurance business is the amount of its income or loss for the year, computed in accordance with this Act, from the business in Canada; and Section 4 of the Act provides, more generally, that income or loss from any source is to be computed as if the particular source were a taxpayer's only source of income. ...

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. ... That is, there must be a clear connection between the amount sought to be deducted and the issuance of the shares. Paragraph 16 of IT-341R3 provides that where a corporation has expenses that are incurred in the course of an issuance or sale of shares in the capital stock of the corporation the following expenses would be deductible in the year in which they are incurred: (a) legal fees in connection with the preparation and approval of a prospectus pertinent to the issuance or sale of shares, units, or interests; (b) accounting or auditing fees in connection with the preparation of reports on financial statements and statistical data for inclusion in, or for presentation with, the prospectus; (c) the cost of printing the prospectus, new share, unit, or interest certificates, etc; (d) registrars' or transfer agents' fees; and (e) filing fees charged by any public regulatory body which requires the filing of a prospectus for acceptance The pre-amble to subsection 20(1) provides as follows: 20(1) Notwithstanding paragraphs 18(1)(a), (b) and (h), in computing a taxpayer's income for a taxation year from a business or property, there may be deducted such of the following amounts as are wholly applicable to that source of such part of the following amounts as may reasonably be regarded as applicable thereto: (emphasis added) Subsection 138(2) of the Act provides that the income or loss of a multinational life insurer from carrying on an insurance business shall be computed with reference only to insurance businesses carried on in Canada: (2) Notwithstanding any other provision of this Act, where a life insurer resident in Canada carries on an insurance business in Canada and in a country other than Canada in a taxation year (a) its income or loss for the year from carrying on an insurance business is the amount of its income or loss for the year, computed in accordance with this Act, from the business in Canada; and Section 4 of the Act provides, more generally, that income or loss from any source is to be computed as if the particular source were a taxpayer's only source of income. ...

., [1949] S.C.R. 287 [49 DTC 514], where it was held that commission payments were not allowable as deductible expenses since they were incurred in connection with the financing of the business and were not related to the income earning process.” ... Yonge-Eglinton Building Limited [[1974] C.T.C. 209] [74 DTC 6180], where Thurlow, J. states that: “... the words “in the course of”... 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.” In our view a payment for damages for breach of contract would be too far removed to be considered “in connection with” or “incidental to” or “ arising from” a specific issuance of shares and would thus not meet the requirements of paragraph 20(1)(e). 2. ...

We understand that, to the best of your knowledge and that of the Taxpayer, none of the proposed transactions or issues involved in this letter are the same as or substantially similar to transactions or issues that are: i. in a previously filed tax return of the Taxpayer or a related person and: A. being considered by the CRA in connection with such return; B. under objection by the Taxpayer or a related person; or C. the subject of a current or completed court process involving the Taxpayer or a related person; or ii. the subject of a ruling request previously considered by the Income Tax Rulings Directorate to the Taxpayer or a related person. ... It is entitled to be released from the liabilities assumed in the proper execution of its tasks, and to be reimbursed for expenses incurred in connection with such liabilities. c) Pursuant to the Fund Contract, the Management Company, among other things, manages the Fund at its own discretion and in its own name, but for the account of the Unitholders. ... It is entitled to be released from the liabilities assumed in the proper execution of its tasks, and to be reimbursed for expenses incurred in connection with such liabilities. c) Pursuant to the Fund Contract, the Custodian Bank is responsible for the safekeeping of the Fund Assets. ...