1 March 1994 Internal T.I. 9321587 - DUTIES PERFORMED NEAR THE RESERVE

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		March 1, 1994

	Mildred Baraniuk	Rulings Directorate
	TPS  1 - 2	Head Office
	Winnipeg Taxation Centre	W.P. Guglich
(613) 957-8953
		932158

XXXXXXXXXX

This is in reply to your round trip memorandum dated July 21, 1993 wherein you requested our views concerning the tax status of XXXXXXXXXX for the 1992 taxation year, based on the Glen Williams case.

The relevant facts as we understand them are as follows:

?XXXXXXXXXX is a status Indian residing on a reserve.

?XXXXXXXXXX is employed in a non-teaching position by the XXXXXXXXXX

?The school at XXXXXXXXXX is within three miles of the reserve.

?XXXXXXXXXX% of the students at the school are Indians.

?The employer is not resident on a reserve.

OUR VIEWS

You have identified four connecting factors, the location where the employment duties are performed, the location of the employer, the residence of the taxpayer and the principal recipient of the employer's services that should be considered. In our view, since both the place where the employment duties are performed and the location of the employer are off reserve, and there are no other factors that would connect the income to the reserve, other than the residence of the taxpayer and the principal recipients of the employer's services, all of the employment income would be taxable.

For additional information concerning the employment income of a status Indian, you may wish to refer to the "Indian Act Detailed Guidelines" issued by the Department on December 15, 1993. A copy of these guidelines was attached to a letter sent by the Taxation Programs Branch to all District Offices, Processing Centres and the International Tax Office on December 20, 1993. The guidelines identify four types of situations to which the Indian Act exemption will apply. The circumstances outlined in your taxpayer's case do not fall within any of those guidelines.

R. Albert
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

cc. R. Owen, Client Assistance Directorate