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
Dear Sir:
RE: Taxation of Employment Income
We are writing in reply to your enquiry concerning the tax status of your employment income from the XXXXXXXXXX
During a telephone conversation on September 9, 1993 between yourself and Mr. Thornley, you indicated that you are a status Indian employed by XXXXXXXXXX Some of your duties are performed on reserves, however, the office that you work out of is not on a reserve nor do you reside on a reserve. It is your understanding that a portion of your employment income, in particular that portion earned while performing services on a reserve, is exempt under the Indian Act.
Our Comments:
Employment income of a status Indian for duties performed partially on a reserve and partially off a reserve may be prorated to determine the tax exempt part. For instance, if it can be determined from travel documents, time sheets and/or other office documents that 20% of your time, exclusive of travel time to and from reserves, is spent performing your duties on reserves, then 20% of your employment income for the period in question may be considered to be tax exempt. In this regard, employment income for the period would be the net amount determined after deducting the appropriate section 8 deductions from the gross employment earnings for the period. We are unable, however, to make a proper determination of your status without additional information and in this respect we suggest you contact personnel at the Hamilton District Office, 150 Main Street West, who should be able, with the proper information, to give you a definitive reply to your query.
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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