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.
MINISTER/DM'S OFFICE 93-3452T ADM'S OFFICE RETURN TO RULINGS, ROOM 303, MET. BLDG. AUTHOR
SUBJECT OR CORPORATE CASE FILE
October 26, 1993
XXXXXXXXXX
Dear XXXXXXXXXX
I am replying to your letter of May 26, 1993, addressed to my predecessor, the Honourable Otto Jelinek, in which you refer to the concerns raised by XXXXXXXXXX with respect to the tax status of XXXXXXXXXX a status Indian. I apologize for the delay of my response.
The confidentiality provisions of the Income Tax Actprohibit me from discussing the income tax affairs of particular taxpayers, without their authorization. Although I am unable to comment on any tax matters which might relate specifically to XXXXXXXXXX I can assure you that her file is being reviewed and she will be given the benefit of any relief which may be available to her. However, I can describe to you the Department's position respecting the taxation of salary and wages and related payments received by status Indians.
Under the Indian Act the personal property, including income of an Indian, when situated on a reserve, is exempt from taxation. Prior to the Supreme Court decision in Glen Williams v. The Queen, 92 DTC 6320, employment income was considered to be situated at the location of the employer. Related payments, such as pension income including Canada Pension Plan benefits, were considered to be located at the payer's principal place of business. As the federal government is not situated on the reserve, any benefits which it pays, such as Canada Pension Plan benefits, were considered taxable to the recipient.
In the Glen Williams decision the Supreme Court stated that in determining whether employment income of an Indian is on a reserve the location of the employer is not the sole factor and all relevant factors connecting the income to a reserve have to be considered. In the Department's view, the Glen Williams decision requires that income which is ancillary to employment income, such as pension income including, Canada Pension Plan benefits, be treated the same as the employment income itself. In other words, if the employment income was exempt under the Indian Act, so too would be the ancillary income.
I thank you for taking the time to write to express your concerns.
Yours sincerely,
Garth Turner
Bill Guglich
957-2131
August 18, 1993
931837
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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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