Principal Issues: Is the employment income of an Indian, who works as a volunteer firefighter in remote areas, considered tax exempt pursuant to paragraph 81(1)(a) of the Income Tax Act and section 87 of the Indian Act?
Position: Whether employment income is taxable or exempt is a question of fact. General comments provided.
Reasons: Guidelines 2, 3, and 4 will not likely apply. Guideline 1 may apply if some of the duties of employment are performed on a reserve and those duties are not merely incidental to duties performed off a reserve.