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.
February 3, 1994
| EDMONTON DISTRICT OFFICE |
Head Office |
| E.J. Schermann, Chief of Audit |
Rulings Directorate |
| |
957-8953 |
Attention: Louise Johnson Client Assistance
Status Indians - Employment Income
This is in reply to your memorandum of July 7, 1993 requesting a determination of the tax status of XXXXXXXXXX
XXXXXXXXXX employs a number of status Indians in an Outreach Program.
XXXXXXXXXX
XXXXXXXXXX
She does not live on a reserve and only 15% of her time is spent working on a reserve.
Our Comments:
As you are aware, the subject of the Section 87 Indian Act exemption was reviewed by the Department following the Williams decision, the result of which was the publication of guidelines on the subject on December 15, 1993. You likely received a copy of these guidelines which were sent to all District Offices by the Taxation Programs Branch on December 20, 1993.
Upon reviewing the guidelines, it appears that the employee's income may be exempt pursuant to Guideline 4, because her employment duties are connected to the reserves served by the Indian organization and the employer may be resident on a reserve. To determine if an "employer is resident on a reserve", the Department must ascertain where the central management exercises control of the organization. As a general rule, residence is the place where the central management exercises control of the business. Central management and control of a corporation is normally the place where the directors of the corporation meet and exercise control.
You are in a better position to obtain the additional information required to determine whether the employer is resident is resident on a reserve such that Guideline 4 would apply.
We trust these comments will be of assistance.
R. Albert for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Rick Owen, Client Services, Ottawa
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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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