Hasbro Canada Inc. v. The Queen, 98 DTC 2129, [1999] 1 CTC 2512 (TCC) -- summary under Subparagraph 212(1)(d)(ii)

The taxpayer, which was a Canadian manufacturer and distributer of toys in Canada, paid fixed commissions expressed as a percentage of the purchase price of products acquired by it from the Far East, to an affiliated company resident in Hong Kong. After noting that s. 212(1)(d)(ii) was based on the definition of royalty suggested by the OECD Fiscal Committee, i.e., it referred to the concept of know-how, Dussault TCJ. found that, here, the information (concerning negotiations, price quotations, delivery schedules, shipment arrangement, etc.,) provided to the taxpayer did not represent know-how, and stated (at p. 2137) that "it does not seem to me that skills in trade practices in a particular area of the world or general business acumen in handling day-to-day commercial transactions for others can be the subject matter of know-how".