17 January 1995 Internal T.I. 9500437 - HONORARIA RECEIVED BY A STATUS INDIAN

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.

		January 17, 1995

B. Reich, Director	HEAD OFFICE
	Saskatoon District Taxation Office	Rulings Directorate
B. Kerr
	Attention:  Kathy Ager	957-2139                	            Communications Manager

		950043

XXXXXXXXXX

This is in reply to your request of January 5, 1995 for our response to the additional question raised by XXXXXXXXXX concerning the Indian Act exemption from taxation for the personal property of an Indian situated on a reserve. In addition to the comments in our December 29, 1994 letter, XXXXXXXXXX wants to know whether the Indian Act Exemption for Employment Income Guidelines (the "Guidelines") will apply to a honoraria.

In order to determine whether the Guidelines applied, you would need to resolve the question of fact as to what kind of payment the honoraria was, for example income from an office, employment or business. Provided that the honoraria does in fact represent income from employment, the Guidelines will apply. In our view, as income from an office is treated similarly to income from employment for income tax purposes, the Guidelines also apply to income from an office. Accordingly, should the honoraria in fact represent income from an office, the Guidelines will also apply. However, should the honoraria represent income from a business then it should be treated as such and the Guidelines would not apply.

R. Albert
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch

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