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.
CANADIAN TAX FOUNDATION NOVEMBER, 1992
Question 65
Determination of Situs of Employment Income for Purposes of the Indian Act
The 1983 Supreme Court of Canada decision in Nowegijick seemed to establish that the situs of employment income for the purposes of the section 87 tax exemption under the Indian Act is determined by the location of the debtor-employer. However, in 1992, the same Court departed from this test and opted for a "connecting factors" test instead. What is Revenue Canada's position in light of the Williams decision?
ANSWER:
The Glenn Williams case dealt specifically with the taxation of unemployment insurance benefits. The Court called into question the situs of the debtor test used in Nowegijick as the sole test for determining whether or not a particular property was on a reserve. It is clear from the Court's decision that unemployment insurance benefits are not taxable where a taxpayer qualified for benefits as a result of employment that was exempt from tax or subject to the Indian Remission Order. The Department is still studying the Williams decision to determine its impact on other issues.
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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