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.
January 13, 1994
| SURREY TAXATION CENTRE |
Head Office |
| Individual and Estate Returns |
Rulings Directorate |
| Processing Section |
(613) 957-8953 |
Attention: Thelma Weisser
XXXXXXXXXX
This is in reply to your letter of September 27, 1993 and further to our telephone conversation (Thornley/Weisser) of November 10, 1993 concerning the tax status of the above noted status Indian's 1991 and 1992 employment income.
The facts as presented are as follows:
XXXXXXXXXX
XXXXXXXXXX
You ask that we determine if her employment income is exempt.
Our Comments:
In order for a status Indian's 1991 employment income to be exempt for taxation, the Indian would either have to be performing employment duties on a recognized reserve or if not performing services on a reserve, the Indian's employer would have to be considered resident on the reserve. In the present instance XXXXXXXXXX
Thus, her employment income for 1991 is taxable.
With the advent of the Williams case (92 DTC 6320), it is necessary to determine what, if any, factors connect a status Indian's employment income to a reserve. Departmental guidelines issued to All District Offices/Processing Centres and International Tax Office on December 20, 1993, detail the connecting factors to consider for purposes of exempting income. XXXXXXXXXX does not live on a reserve, does not work on a reserve, and does not work for an employer which resides on a reserve. Her only connecting factor is the Indian related program for which she performs secretarial duties as an employee of XXXXXXXXXX
Thus, in our opinion, her 1992 employment income is also taxable. We also note that the taxpayer's employer is the XXXXXXXXXX and not the president of the XXXXXXXXXX The fact that he may live on a reserve is not relevant.
Roberta Albert for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Rick Owen
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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