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.
Principal Issues: Whether the income from the office of Prime Minister is taxable.
Position: Yes.
Reasons: There are exemptions in the Act for certain types of income, such as income earned from the office of Governor General of Canada. However, no exemption exists regarding the income earned from the office of a Member of the House of Commons of Canada, including the office of the Prime Minister, or a Member of a provincial legislative assembly. Income earned by these members from their offices is taxed in the same way as the income of any other Canadian who holds an office or is employed
November 10, 2005
XXXXXXXXXX
The Honourable John McCallum, Minister of National Revenue, has asked me to reply to your email of October 19, 2005, regarding whether the Prime Minister of Canada is required to pay income tax.
The confidentiality provisions of the Income Tax Act prevent me from discussing an individual's tax affairs without his or her written authorization. However, I can tell you that all Canadian residents are liable for income tax on their worldwide income. The Canada Revenue Agency is responsible for administering and enforcing the Act fairly and consistently.
There are exemptions in the Act for certain types of income, such as income earned from the office of Governor General of Canada. I assure you that no exemption exists regarding the income earned from the office of a Member of the House of Commons of Canada, including the office of the Prime Minister, or a Member of a provincial legislative assembly. Income earned by these members from their offices is taxed in the same way as the income of any other Canadian who holds an office or is employed.
I appreciate the opportunity to respond to your question.
Ed Gauthier
Deputy Assistant Commissioner
Tax and Regulatory Affairs
Policy and Planning Branch
Canada Revenue Agency
c.c.: Minister's Office
Political Assistant
Randy Hewlett
613-957-2049
November 1, 2005
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