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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sir:
RE: Taxation of Wage Loss Replacement Plan Benefits - Status Indians
We are writing in response to your letter of March 29, 1993 addressed to the Hamilton District Office which was forwarded to us for reply.
You inquire as to the tax status of wage loss replacement plan benefits received by a status Indian. We understand that the Indian does not live on a reserve but has received employment income from an employer that operates a business on reserve. You indicate that the benefits received from the XXXXXXXXXX Wage Loss Replacement Plan were received by virtue of such employment.
Our Comments:
Wage loss replacement plan benefits, the premiums for which were paid while earning exempt employment income or employment income regarding which income taxes were remitted pursuant to an Indian Remission Order, are considered exempt income whether they are received by an Indian residing on or off reserve. Where, however, the employment income received by the Indian was not exempt from tax, the wage loss replacement plan benefits will be taxable.
We trust that these comments will be of assistance.
Yours truly,
R. Albert for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
cc. Rick Owen
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© His Majesty the King in Right of Canada, 1994
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