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.
ADM'S OFFICE (3) ADM 940123
RETURN TO RULINGS, ROOM 303, MET. BLDG.
AUTHOR
SUBJECT OR CORPORATE FILE
March 9, 1994
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing to you further to our recent telephone conversations wherein you requested that we confirm the Department's current position that under the draft "INDIAN ACT EXEMPTION FOR EMPLOYMENT INCOME DETAILED GUIDELINES" the employees of the XXXXXXXXXX are not exempt from income tax on their employment income.
As you know, draft guideline #4 requires an organization to meet various criteria in order for its employees to be tax exempt. The Winnipeg District Taxation Office has conducted an audit and concluded that the head office of XXXXXXXXXX is not located on a reserve and therefore does not presently meet the residence test. The Department considers that an employer is resident on a reserve if the reserve is the place where the central management and control over the business is actually located. The central management and control of an organization is considered to be exercised by the group that performs the function of a Board of Directors of the organization and may be exercised in a place other than the principal administrative office of the organization.
As indicated in my December 15, 1993 letter attached to the guidelines, I welcome comments concerning them until March 31, 1994. Upon considering any representations that we receive the guidelines will be finalized, and at that time, we will confirm our position.
Yours sincerely,
Denis Lefebvre
Assistant Deputy Minister
Legislative & Intergovernmental
Affairs Branch
Bill Kerr
957-2139
March 1, 1994
940029
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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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