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

The taxpayer, which was a Canadian manufacturer and distributor 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. Although the purchase commissions were found to be dependent on sales of goods by manufacturers to Hasbro that were described in s. 212(1)(d)(iii)(B), by the same token they were excluded by the postamble: the phrase "in connection with" was clearly broader in its scope than the phrase "dependent on". Furthermore, at least some portion of the payments made was made for services in connection with the negotiation of a contract, and accordingly all the payment were exempt from withholding tax as the Minister had not designated which portion should be taxable under s. 212(1)(d)(iii).