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\Madam:
RE: Director's Fees
This is in reply to your letter dated May 18, 1993 concerning the nature of the income received by a corporation where such corporation earns director's fees as discussed in paragraph 4 of Interpretation Bulletin IT-377R.
The said paragraph refers to a situation where an individual acts as director of a corporation at the request of the corporate shareholder.
Income earned by a corporation is usually derived from a business, property or some other sources except employment. In our view, the director's fees paid to the corporate shareholder as described above is income from a source other than income from a business or property.
The above comments reflect an expression of opinion only and are not binding on the Department, as explained in paragraph 21 of Information Circular 70-6R2. We trust, however, that they are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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