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Factors to be considered include: the objects of Canco’s business; the nature of the activities Canco is carrying on outside Canada; and whether Canco is considered under the foreign jurisdictions in which the installation services are to be performed, to be carrying on business in those jurisdictions. 970953 XXXXXXXXXX Daniel Wong (613) 954-4949 Attention: XXXXXXXXXX June 4, 1998 Dear Sir: Re: Overseas Employment Tax Credit This is in reply to your letter of April 8, 1997, wherein you requested our opinion on section 122.3 of the Income Tax Act (the “Act”). ... In any event, a request cannot be considered for a ruling when the transactions are completed or where the issues involved are primarily questions of fact. ... Another factor to be considered is whether Canco is considered under the taxation laws of the various foreign jurisdictions to be carrying on business in those jurisdictions. ...

Only training and educational costs which fall within the third category will be considered of primary benefit to the employee and thus remain taxable. All other training which falls into the first or second category will generally be considered to primarily benefit the employer and therefore be non-taxable. ... The new guidelines will apply to individuals who received a taxable benefit in 1997, to determine whether the training is still considered taxable. ...

Principal Issues: Whether a “right of first refusal” after an employee is terminated would disqualify a payment from being considered a retiring allowance. Position: The “right of first refusal” will generally not, in and of itself, disqualify payments which would otherwise qualify as a retiring allowance from being considered as such. ... Also, termination of employment will be considered as having occurred even if the “right of first refusal” is later exercised and the employee is re-hired since, at the time the termination was announced, the employee and the employer had not arranged for the re-hiring. ...

As indicated in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, a request for a written opinion on a completed transaction is generally considered by the taxpayer's local district office. ... In our view, the corporation described above would be considered a specified investment business since the principal purpose of the business carried on by the corporation appears to be that of renting storage facilities. The loading and unloading services provided to the clients would likely be considered ancillary to the main objective of renting storage facilities. ...

Position TAKEN: In order for the optional arrangement to be considered a separate plan the premium rates, benefit levels, qualifications for membership, etc. must not depend on the existence of the main plan. ... Reasons FOR POSITION TAKEN: Where there is no cross-subsidization, no dependencey at all on the existence of the other plan then it can be considered to stand alone and assessed on its own merits. 942799 XXXXXXXXXX J.A. ... We would emphasize that the above comments do not represent an advance ruling and as such is not considered binding on the Department. ...

The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization. ... " Where an organization which would otherwise not be considered to be resident on reserve is asserting that it satisfies the definition because it holds its board of directors meetings on reserve, it should generally be considered to satisfy the definition where management and control over the organization is legitimately exercised during those meetings. In addition, in our view, the fact that the board of directors meetings are held on different reserves would not, in and by itself, cause an organization to not be considered resident on reserve. ...

Also- if a separate subsidiary is incorporated to carry on separate lines of business, will the shares of the subsidiary be considered to have been acquired in the "ordinary course of business" for puposes of 112(2.1)? ... More particularly, your query was whether the shares of those subsidiary corporations would be considered to be acquired by the specified financial institution "in the ordinary course of business" as that term is used in subsection 112(2.1) of the Act. ... We would note, however, that, in response to question number 62 at the Revenue Canada Round Table of the 1984 Conference of the Canadian Tax Foundation, the Department provided a list of several factors which would be considered in determining whether a share would be considered to be a term preferred share and, among the factors which would lead to a contrary conclusion, was "whether the funds involved represent the initial capitalization of a new subsidiary or the provision of additional operating capital to a subsidiary, both of which would normally indicate permanent capitalization". ...

Can the individual be considered to "ordinarily inhabit" the residence for 1994 and subsequent years? ... Occasional visits by the individual to see the parents would not result in the individual being considered to have ordinarily inhabited the housing unit. ... Because you lived in the B.C. residence during most of 1994, you would be considered to have satisfied the "ordinarily inhabited" requirement for that year. ...

Consequently, the "discount" will not be considered taxable. ... Similarly, an employed real estate salesperson who acquires a property through his or her employer firm is not considered to purchase a product of the firm at a discounted price. ... Since the commissions earned by a salesperson trading securities on his own account are considered taxable in their entirety, the specific questions raised in your correspondence become moot. ...

Where the father is considered a dual resident under the Convention, he would be required to provide evidence in his income tax return of the factors considered in determining the tie-breaker rule and the provisions under the Convention that provided him with and exemption or reduced rate. ... If after applying the tie-breaker rule in the Convention the father was considered to be a resident of Czechoslovakia for purposes of the Convention, he would continue to be considered a resident of Canada under the Canadian Income Tax Act (the "Act") and he would be provided with an exemption under paragraph 110(1)(f) of the Act in respect to any exemption provided under the Convention and the other income would only be taxed at the rate permitted in the Convention. ... If the father was considered a resident of Czechoslovakia (under the tie-breaker rule), the Convention would not prevent Canada from taxing Canadian sourced income. ...