Section 122.3

Administrative Policy

27 November 1992 T.I. 920738 (September 1993 Access Letter, p. 421, ¶C117-203)

A Canadian company that was a specified employer and that as part of its business contracted to provide the services of its employees to another...

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15 January 1990 Memorandum (June 1990 Access Letter, ¶1272)

The phrase "with respect to" is not broad enough to include the activities of a sub-contractor; the employer must directly carry on one of the...

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Articles

Novek, "Employment Tax Credit: Sector Specific Tax Relief for Canadian Residents Working Overseas", Taxation of Executive Compensation and Retirement, September 1993, p. 808.

Subsection 122.3(1) - Overseas employment tax credit

Cases

Meredith v. Canada (Attorney General), 2002 DTC 7190, 2002 FCA 258

It was found that the Tax Court Judge had erred in denying the taxpayer a credit on the basis that he and a corporation of which he was the sole...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Corporate/Separate Personality shareholder and corporation were separate 125

Rooke v. Canada (Attorney General), 2002 DTC 6442, 2002 FCA 393 (FCA)

A taxpayer spent approximately one-half of his time outside Canada, and his employment income was almost entirely attributable to engineering work...

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Timmins v. The Queen, 99 DTC 5494, [1999] 2 CTC 133 (FCA)

The taxpayer was employed by the New Brunswick Department of Agriculture and Rural Development to assist in establishing and administering several...

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Words and Phrases
carried on business
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business N.B. government had a servicing undertaking, i.e., a business 169

Timmins v. The Queen, 96 DTC 6378, [1996] 3 CTC 175 (FCTD)

The taxpayer's employer, the New Brunswick provincial government, agreed with the Canadian International Development Agency to assist in...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence 41

See Also

Legge v. The Queen, 2011 DTC 1302 [at 1699], 2011 TCC 413

The taxpayer was employed as an instructor at the College of the North Atlantic (the "CNA") on a campus in Qatar ("CNA-Q"). The program the...

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MacIsaac v. The Queen, 2010 TCC 436

The taxpayer supplied personnel for ships, oil rigs, and other offshore businesses. Applying Dunbar (2005 TCC 269 , 2005 DTC 1807), Webb J. found...

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Humber v. The Queen, 2010 DTC 1170 [at 3371], 2010 TCC 253 (Informal Procedure)

The employer of the taxpayer, which operated and administered a college of applied arts and technology in Qatar, whose activities included the...

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Thompson Trailbreakers Snowmobile Club Inc. v. The Queen, 2005 DTC 1807, 2005 TCC 269 (Informal Procedure)

The taxpayer's Canadian employer provided the services of captains for various shipping services including, in this case, transporting crude by...

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Purves v. The Queen, 2005 DTC 684, 2005 TCC 290 (Informal Procedure)

The taxpayer, who lived in Windsor, Ontario, was employed by a Canadian firm that carried on the business of supplying engineering services, and...

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Adams v. The Queen, 2005 DTC 636, 2005 TCC 237 (Informal Procedure)

A services contract between a Canadian-resident corporation ("Cheyenne") that Sheridan J. later found to be a genuine drilling services...

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Administrative Policy

25 September 2013 External T.I. 2013-0497011E5 F - OETC - Qualifying period

An individual performed various preparatory work in Canada under a service contract for a qualifying activity for the purposes of the OETC, then...

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18 July 2013 External T.I. 2013-0493081E5 - Definition of "Outside Canada" - Water Boundaries

The correspondent asked when an individual engaged in offshore oil and gas exploration was "outside Canada" for the purpose of s. 122.3(1).

In...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 255 143

30 June 2009 External T.I. 2008-0304311E5 F - Période admissible - CIEE

For the purposes of the Overseas Employment Tax Credit, when does the qualifying period of more than six consecutive months begin and end? CRA...

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8 December 2003 Internal T.I. 2003-0042537 F - CIEE & SRAS

After taking leave in Canada in accordance with the terms of their employment regarding an offshore project, the employees’ return to the...

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Words and Phrases
absence

28 January 2003 External T.I. 2002-0147405 F - Crédit d'impôt pour emploi à l'étranger

The employees that Canco uses to carry out qualifying services contracts in the U.S. include casual workers who are paid by the hour for the time...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) leave period in Canada counted towards the 6-month period required under s. 122.3(1) of employment on performing services on foreign project 52

27 February 2002 External T.I. 2001-0109675 F - Période admissible et vacance

The period of employment for the overseas assignment for purposes of the six-month test could not include vacation days taken after returning to...

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18 April 1995 Internal T.I. 9500997 - OVERSEAS EMPLOYMENT TAX CREDIT COMPUTERS

"Where an employer is primarily engaged under a contract to develop computer software and to integrate such software with existing systems, and...

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25 October 1994 External T.I. 9413235 - OVERSEAS EMPLOYMENT TAX CREDIT

Computer-based vocational training is not a qualified activity for purposes of s. 122.3(1)(b).

31 January 1994 External T.I. 9329515 F - Foreign Tax Credit

Employment for the purpose of obtaining contracts for the purchase of buildings, stores and businesses will not qualify even if construction...

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23 December 1993 Internal T.I. 9335957 F - Overseas Employment Tax Credit-Subcontractor (7070-7)

Employees of a sub-contractor may qualify for the credit notwithstanding that the sub-contractor itself is not carrying on a qualified activity...

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93 CPTJ - Q.8

Re whether an employee of a Canadian drilling contractor working in Alaska for over six consecutive months on a contract held by the Canadian...

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93 CPTJ - Q.7

In order for the individual to qualify, she must be employed by a specified employer for a period of more than six consecutive months outside...

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93 CPTJ - Q.6

Generally, where a specified employer is carrying on business outside Canada and has a subcontract to provide operating support services through...

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18 June 1993 T.I. (Tax Window, No. 32, p. 15, ¶2611)

Activities of developing computer software must involve the use of engineering knowledge in order to be considered an engineering activity, and...

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18 June 1993 T.I. (Tax Window, No. 32, p. 5, ¶2596)

Re application of "all or substantially all" a test where for each month an employee works in a foreign jurisdiction he has one month off and...

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Articles

Pooja Samtani, "Employees on Foreign Ground: The Overseas Employment Tax Credit", Taxation of Executive Compensation and Retirement, Vol. 17, No. 8, April 2006, p. 663.

John Mill, "Canada's Overseas Employment Tax Credit", Tax Notes International, Vol. 35 No. 11, 13 September 2004, p. 995.

Paragraph 122.3(1)(a)

Administrative Policy

2 February 2006 External T.I. 2005-0152871E5 F - Crédit d'impôt pour emploi à l'étranger

An employee supervises three construction projects in a foreign country, one of which is partially funded by a Reg. 3400 international development...

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18 April 2005 External T.I. 2004-0096231E5 F - Déduction de l'impôt payable - emploi à l'étranger

The taxpayer, a Canadian resident, ceased employment abroad by his Canadian employer in 2001 and was paid a separation allowance in 2002. CRA...

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Paragraph 122.3(1)(b)

Administrative Policy

2 November 2011 External T.I. 2011-0413641E5 F - CIEE

[T]he employer resident in Canada, which carries on a business of operating a fleet of vessels providing transportation services, signed a...

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5 November 2010 External T.I. 2010-0383871E5 F - Crédit d'impôt pour emploi à l'étranger

Before employees go abroad to perform under the contract, they must work in Quebec to prepare and ship the equipment needed for the work to be...

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Words and Phrases
substantially all

Subparagraph 122.3(1)(b)(i)

Administrative Policy

28 August 2009 Internal T.I. 2003-0029367 F - Paragraph 122.3

Regarding the requirement in s. 122.3(1)(b)(i) that the specified employer carry on business outside Canada under a contract, the Directorate...

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Clause 122.3(1)(b)(i)(A)

See Also

Humber v. The Queen, 2010 DTC 1170 [at 3371], 2010 TCC 253 (Informal Procedure)

The employer of the taxpayer, which operated and administered a college of applied arts and technology in Qatar, whose activities included the...

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Clause 122.3(1)(b)(i)(B)

Administrative Policy

9 November 2016 External T.I. 2014-0537121E5 F - Overseas employment tax credit

Do marine dredging activities (i.e., the excavation of sediments from the seabed to allow or facilitate marine traffic) qualify as part of a...

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Words and Phrases
construction

24 June 2003 External T.I. 2002-0169405 F - Projet d'ingénierie

In finding that an activity of training including regarding business process re-engineering did not qualify as an “engineering activity,” CCRA...

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Words and Phrases
engineering activity

Paragraph 122.3(1)(d)

Administrative Policy

10 December 2012 External T.I. 2011-0429721E5 F - OETC - Employee stock options benefits

A resident employee, who exercises employee stock options a few years after their grant by the corporate employer, performed duties both in Canada...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) s. 7(1)(a) benefit generally relates to duties performed in the grant year 173

Subsection 122.3(1.01) - Specified amount

Administrative Policy

30 January 2015 External T.I. 2014-0521751E5 - overseas employment tax credit

A resident individual contracted a "specified employer" prior to March 29, 2012 and, on January 1, 2013, one day after the contract expired,...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Transitional Provisions and Policies "extension" of contract one day after it expired could result in a new contract 136

Subsection 122.3(1.1)

Paragraph 122.3(1.1)(a)

Administrative Policy

28 April 2008 External T.I. 2007-0248761E5 F - Crédit d'impôt pour emploi à l'étranger

A corporation of which an engineer was an employee and shareholder and which provided project operations management services in the industrial...

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Paragraph 122.3(1.1)(c)

See Also

Gillespsie v. The Queen, 2009 DTC 295, 2009 TCC 26

The taxpayer accepted an assignment with a company ("Elbit") in Venezuela to work on the maintenance of fighter aircraft and, in order to limit...

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