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.
Principal Issues:
Whether Old Age Security income received by a status Indian qualifies for the Indian exemption?
Position TAKEN:
No. Old Age Security income is taxable.
Reasons FOR POSITION TAKEN:
Old Age Security income does not have any reserve connection and is taxable.
ADM'S OFFICE (3) ADM 940630
RETURN TO RULINGS, ROOM 303, MET. BLDG.
AUTHOR
SUBJECT OR CORPORATE FILE
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in response to your letter of April 21, 1994, wherein you requested exemption from income tax for XXXXXXXXXX in respect of his old age security income.
The confidentiality provisions of the Income Tax Act prohibit me from discussing the income tax affairs of particular taxpayers without their written authorization. Although I am unable to comment on any tax matters which may relate specifically to XXXXXXXXXX I can inform you that the Department is not aware of any income tax exemption provided to Indians by virtue of Treaty No. 6.
Section 87 of the Indian Act and paragraph 81(1)(a) of the Income Tax Act provide exemption from taxation to status Indians. The exemption is for personal property situated on a reserve. Old age security income has never been considered to be personal property situated on a reserve. In the Williams case, 92 DTC 6320, the court ruled that to determine if an Indian's income was situated on a reserve one must look at all factors connecting the income to a reserve. However, old age security income does not have any reserve connection and remains taxable.
I wish to thank you for bringing your concerns to my attention.
Yours sincerely,
Denis Lefebvre
Assistant Deputy Minister
Legislative & Intergovernmental
Affairs Branch
Wm. P. Guglich
957-2102
June 6, 1994
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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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