25 February 1994 Ministerial Letter 9401278 - INDIAN ACT EXEMPTION GUIDELINES

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 940047

RETURN TO RULINGS, ROOM 303, MET. BLDG.

AUTHOR
SUBJECT OR CORPORATE FILE

February 25, 1994

Mr. Rocky Dwyer

Director
Human Resources
Corporate Services, Human Resources
Alberta Region
Suite 630, 9700 Jasper Avenue
Edmonton, Alberta
T5J 4G2

Dear Mr. Dwyer:

Thank you for your letter of January 6, 1994, regarding the Indian Act Exemption for Employment Income Detailed Guidelines (the "Guidelines").

You have asked for clarifications regarding the federal government's position as an employer. More specifically, you ask whether the Department of Indian Affairs and Northern Development and its Regional Office in Edmonton are considered to be off-reserve employers.

According to the Guidelines (page 11), an employer is resident on a reserve if that is the place where its central management and control is actually located. The central management and control of the Department of Indian Affairs and Northern Development is not situated on a reserve within the meaning of the Guidelines. Therefore, native employees of the Department of Indian Affairs and Northern Development are considered to be employed by an off-reserve employer.

You have also asked us to determine how the Guidelines would apply in three different situations. As far as the first two situations are concerned, Guideline 1 would apply to exempt all the employment income of the Indian, as all of the duties are performed on a reserve.

With respect to the third situation, Guideline 1 and the Proration Rules would apply since part of the Indian's employment duties are performed on a reserve and another part is performed off-reserve. In such a situation, the employment income must be prorated between the duties performed on a reserve and the duties not performed on a reserve to determine the tax exempt portion. In order to substantiate the time spent performing duties on the reserve, documentation such as travel documents, time sheets and/or other office documents may be required.

Should you require further information, please do not hesitate to contact me.

		Yours sincerely,

		Denis Lefebvre
		Assistant Deputy Minister
		Legislative and Intergovernmental
		  Affairs Branch

C. Chouinard
957-2098
February 21, 1994