Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Inaccuracies in statements attributed to a Revenue Canada spokesman.
Position:
The inaccuracies should be corrected by the publisher.
Reasons:
The statements do not accurately summarize Mr. Biscaro's presentation and they do not reflect the Department's views.
970591
XXXXXXXXXX J.D. Brooks
March 10, 1997
Dear Sirs:
Re: Income of Indians
The purpose of this letter is to clarify statements that XXXXXXXXXX The publication at issue is
XXXXXXXXXX
It should be noted that Mr. Biscaro's presentation on the Indian Act was confined to investment income. The general approach to determining whether income is exempt from taxation is to follow the connecting factors test laid out by the Supreme Court of Canada in Williams. The exemption with respect to investment income was considered in the Recalma case, wherein it was concluded that income earned in the economic mainstream is not connected to a reserve. As to investments acquired at a branch of a bank, in our view, the mere fact that the branch is situated on reserve is insufficient to exempt income earned on the investments.
We are attaching a copy of the February 10, 1997 Technical News issued by the Department which has the text of the presentation given by Mr. Biscaro.
XXXXXXXXXX
Yours truly,
R. Albert
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1997
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© Sa Majesté la Reine du Chef du Canada, 1997
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