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 10, 1994
Ottawa District Office Head Office Employer Services Rulings Directorate (613) 957-8953
Denise Dettberver
Taxation of Employment Income Earned by a Native Bridge Worker
This is in reply to your Round Trip Memorandums of November 5 and December 21, 1993 wherein you requested our comments regarding the tax treatment of employment income and unemployment insurance benefits received by an Indian for work performed on behalf of the XXXXXXXXXX
The amended Indian Bridge Workers Remission Order, a copy of which is attached, grants remission of income taxes, interest and penalties accruing because of the inclusion of bridge pay in the income of Indians working on the international bridges at Cornwall. The intent of the Remission Order is to treat bridge pay as personal property of an Indian, exempt from tax pursuant to the Indian Act and paragraph 81(1)(a) of the Income Tax Act.
As you will note from paragraph 3 of the Order, it applies in respect of bridge pay that is received during the period beginning on January 1, 1984 and ending on the day on which there is a withdrawal, an abandonment or a final decision that is unappealable or in respect of which the appeal period has expired in the case of Sunday (Mitchell) et al. v. The St. Lawrence Seaway Authority et al that is before the Federal Court.
With respect to unemployment insurance benefits, they are not taxable where the taxpayer qualified for benefits as a result of employment that was exempt from tax or subject to an Indian remission order.
Accordingly, if the employment income that gave rise to the unemployment insurance benefits is exempt from tax pursuant to the Indian Bridge Workers Remission Order, the benefits will be equally exempt.
R. Albert for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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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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