28 May 1999 Ministerial Letter 9907588 - EMPLOYMENT INCOME

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.

XXXXXXXXXX

Dear XXXXXXXXXX:

The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to reply to your letter of February 22, 1999, concerning your interpretation of section 9 of the Income Tax Act (the “Act”). Specifically you inquire whether you are considered property for purposes of section 9 of the Act.

An individual resident in Canada is generally subject to tax on his or her world income from all sources, including employment, business, property and taxable capital gains. Income from these various sources are dealt with by specific provisions of the Act.

Section 9 of the Act, to which you refer, states that a taxpayer’s income for a taxation year from a business or property is the profit from that business or property for the year. Section 9 of the Act only applies if you have income from a business or property. Income from property refers to a particular source of income such as interest or rentals. I can assure you that, despite your concerns, for purposes of this provision an individual is not considered property.

Sections 5, 6, 7 and 8 of the Act deal with the calculation of income from an office or employment. Section 5 requires that salary, wages and other remuneration, including gratuities received in the year, must be included in income. Section 6 describes the employment-related benefits that must be included as income from an office or employment. Section 7 deals with employees’ stock options. Finally, section 8 sets out rules for the specific deductions that may be claimed in computing income from an office or employment.

If you have any specific concerns, I invite you to contact Ms. Betty Reid at the Northern B.C.-Yukon Tax Services Office, by writing to Bag 7500, Prince George, BC, V2L 5N8, or by telephoning 0-250-561-7812 collect. She is aware of our correspondence and will be pleased to assist you.

I trust my reply is helpful to you.

		Yours sincerely,

		Bill McCloskey
		Assistant Deputy Minister
		Policy and Legislation Branch

C.C. Betty Reid
Northern B.C.-Yukon Tax Services Office
Bag 7500
Prince George, BC
V2L 5N8

Wm. P. Guglich

May 20, 1999
957-2102

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