4 February 1994 Ministerial Letter 9402698 - INCOME FROM THE OFFICE OF THE GOVERNOR GENERAL

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.

ISSUE SHEET

EXPOSÉ DE LA QUESTION

INCOME FROM THE OFFICE OF GOVERNOR GENERAL
REVENU TIRÉ DE LA CHARGE DE GOUVERNEUR GÉNÉRAL DU CANADA

Issue:

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since the income of the Governor General of Canada is exempt from income tax, the incumbent could qualify for the Goods and Services tax credit.

Response:

A SPECIFIC PROVISION IN THE INCOME TAX ACT EXEMPTS THE INCOME RECEIVED FROM THE OFFICE OF GOVERNOR GENERAL OF CANADA. WHILE I CANNOT DISCUSS THE TAX AFFAIRS OF SPECIFIC INDIVIDUALS, I WOULD LIKE TO POINT OUT THAT INCOME FROM OTHER SOURCES WHICH THE INCUMBENT OF THE POSITION OF GOVERNOR GENERAL IS IN RECEIPT OF, SUCH AS RENTAL INCOME, INTEREST, ETC. IS SUBJECT TO TAX IN ACCORDANCE WITH THE LAW. LIKE ANY OTHER CANADIAN, THE GOVERNOR GENERAL WOULD BE IN A POSITION TO APPLY FOR THE GOODS AND SERVICES TAX CREDIT IF HIS OR HER LEVEL OF INCOME (EXCLUDING EXEMPT INCOME) QUALIFIED AND ALL OTHER REQUIREMENTS ARE MET.

Question :

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comme le revenu tiré de la charge de gouverneur général du Canada est exonéré d'impôt, le titulaire de cette charge pourrait avoir droit au crédit pour taxe sur les produits et services.

Réponse :

SELON UNE DISPOSITION PRÉCISE DE LA LOI DE L'IMPÔT SUR LE REVENU, LE REVENU TIRÉ DE LA CHARGE DE GOUVERNEUR GÉNÉRAL DU CANADA EST EXONÉRÉ D'IMPÔT. BIEN QUE JE NE SOIS PAS AUTORISÉ A DISCUTER DES AFFAIRES FISCALES DES PARTICULIERS, JE TIENS A SOULIGNER QUE LE TITULAIRE DE LA CHARGE DE GOUVERNEUR GÉNÉRAL DU CANADA PEUT TOUCHER DES REVENUS D'AUTRES SOURCES, PAR EXEMPLE DES REVENUS DE LOCATION ET DES REVENUS D'INTÉRÊT, QUI SONT ASSUJETTIS A L'IMPÔT CONFORMÉMENT A LA LOI. COMME TOUT AUTRE CANADIEN, LE GOUVERNEUR GÉNÉRAL POURRAIT DEMANDER LE CRÉDIT POUR TAXE SUR LES PRODUITS ET SERVICES SI SON REVENU (A L'EXCEPTION DE SON REVENU EXONÉRÉ) LE RENDAIT ADMISSIBLE ET SI TOUTES LES AUTRES EXIGENCES ÉTAIENT RESPECTÉES.

Background:

Paragraph 81(1)(n) of the Income Tax Act exempts from taxation amounts received from the office of Governor General of Canada. However, income earned by the Governor General from any other source, such as investment income or taxable capital gains are not so exempted. Income from the office of Governor General of Canada would not be "earned income" for purposes of calculating the amount eligible for deductions as an RRSP contribution.

Among other things, eligibility for the Goods and Services Tax Credit is based on the "adjusted income" of an individual and the individual's spouse. As amounts exempted under subsection 81(1) of the Act, including the income from the office of the Governor General are not included in the computation of the individual's income, it would not be included in the "adjusted income" of the individual applying for a Goods and Services Tax Credit. It is therefore possible that a Governor General could qualify for this credit. However, given the probability that a Governor General and his or her spouse would have other sources of income that are not exempt and that the income threshhold at which the credit starts to erode is $25,921, the likelihood that a particular incumbent would qualify for the credit is very slight.

			Approved by ADM ____________

For further information contact:

Name: Danielle Zion
Phone: 957-2140
February 4, 1994