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 17, 1993
| DO/TC Support Services Section |
HEAD OFFICE |
| R. Cousineau |
Rulings Directorate |
| Source Deductions Division |
(613) 957-8953 |
Native Fisherman
This is in reply to your memorandum dated December 17, 1993, requesting our assistance in determining whether certain Unemployment Insurance Benefits (U.I.) received by native fishermen would be exempt from tax.
In particular, enquiries from both the Vancouver and the Victoria district offices were concerned with the two following situations:
1. Status Indians employed by a Fishing Corporation situated on a reserve, and,
2. Self employed native fishermen.
We have enclosed a copy of our recent response to Gino Nasato of the Victoria District Office, dealing with these very issues as they concern employment income. As you are aware, U.I. benefits received by Indians are tax exempt if they are based on employment income which itself was exempt, therefore the guidelines issued December 15, 1993 should be applied in determining whether or not the employment income can be connected to a reserve.
With a self-employed fisherman, as in example 1 of the attached memorandum, it is necessary to determine the location of the permanent establishment of his business. Therefore in response to your first question, a self employed native fisherman would in fact be treated the same as a native in business. In such cases, the rules set out in IT- 62 regarding a business would be applicable. Page 4 of the memorandum provides general guidelines with respect to self-employed natives.
In response to your second question, when determining whether U.I. benefits are exempt from tax, one must look at the employment or self- employment income entitling the individual to the benefits, not where the individual lives when the application for U.I. is made.
R. Albert for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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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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