Income Tax Severed Letters - 2022-07-20

Technical Interpretation - External

11 May 2022 External T.I. 2022-0932801E5 - Refugee Financial Support

Unedited CRA Tags
56(1)(u), 56(1)(r), 153(1), ITR 200(1), ITR 200(2), ITR 233(1)

Principal Issues: Whether the financial support provided to resettled refugees, under the XXXXXXXXXX Program, is included in the recipients income.

Position: No.

Reasons: The financial support provided under the XXXXXXXXXX Program does not appear be income from a source under the Act, and therefore would not be included in the income of the recipients.

Conference

30 November 2021 Roundtable, 2021-0914531C6 - 2021 TEI – Q3A - Section 87 Indian Act

Unedited CRA Tags
81(1)(a)

Principal Issues: Question concerning CRA's administration of the Indian Act Exemption for Employment Income Guidelines.

Position: see response.

Reasons: see response.

21 October 2021 Roundtable, 2021-0905101C6 - CPA Provincial Roundtable Question 32

Unedited CRA Tags
2(2), 8(1), 15(2), 20(1), 20(1)(j), 20(1)(ww), 80.1(4)(c), 91(5), 93(3)(a), 110(1), 110.1(1), 110.2(2), 110.6(2), (2.1), and (2.2), 111(1), 112(1), (2.2), (2.3), and (2.4), 113(1), 120.4(1), (2), and (3), 138(6)

Principal Issues: Does claiming the paragraph 20(1)(ww) deduction preclude a taxpayer from subsequently claiming the paragraph 20(1)(j) deduction when the loan is repaid?

Position: No. Paragraph 20(1)(ww) provides a deduction in computing income, whereas the bracketed phrase contained in paragraph 20(1)(j) only applies to deductions in computing taxable income.

Reasons: Based on the provisions of the Act, jurisprudence and CRA publications.

8 September 2021 Roundtable, 2021-0904961C6 - 2021-CPAC - Q12- Employment Income-S.87 Indian Act

Unedited CRA Tags
81(1)(a)

Principal Issues: Will the CRA consider changing the Guidelines based on the Morriseau case.

Position: see response.

Reasons: see response.

Technical Interpretation - Internal

24 January 2022 Internal T.I. 2021-0917931I7 - Application of the admin position to new hires

Unedited CRA Tags
81(1)(a) of the Income Tax Act and Section 87 of the Indian Act

Principal Issues: Would a newly hired First Nations employee who currently works off- reserve because of current workplace restrictions related COVID, qualify for the administrative position provided under the Guidance?

Position: No.

Reasons: The employee must have usually performed the duties of employment on a reserve before the workplace restrictions. In the case at hand, the newly hired employee has not performed any duties of employment at the on-reserve establishment of the employer.