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 the taxpayer's situation is similar to the situation described in Guideline 4 of the Indian Act Exemption for Employment Income Guidelines.
Position:
No.
Reasons:
The fact that XXXXXXXXXX salary was funded by an Indian organization situated on reserve is not as significant as the fact that her actual employer was a non-Indian organization that was situated off-reserve and served mostly non-Indian persons.
June 17, 1997
XXXXXXXXXX Tax Services Office HEADQUARTERS
J. D. Brooks
Attention: XXXXXXXXXX 957-8953
971490
XXXXXXXXXX
This is in reply to your query of May 14, 1997 concerning the tax status of employment income of the taxpayer identified above. The issue is whether XXXXXXXXXX qualified for exemption from tax following the reasoning of Guideline 4 of the Indian Act Exemption for Employment Income Guidelines.
Facts
Our understanding of the facts is as follows:
1.XXXXXXXXXX is a registered Indian.
2.XXXXXXXXXX lived off reserve for the years under consideration.
3. XXXXXXXXXX
4.She provided secretarial services for XXXXXXXXXX which provided counselling services for native students attending schools within that board's jurisdiction.
5.The Counselling Services offices were located in the board's schools in XXXXXXXXXX and, presumably, XXXXXXXXXX worked in XXXXXXXXXX.
6. XXXXXXXXXX
Our View
It is our view that the fact that XXXXXXXXXX salary was funded by an Indian organization situated on reserve is not as significant as the fact that her actual employer was the XXXXXXXXXX.
XXXXXXXXXX employer was not an Indian organization, was not resident of a reserve, and was not dedicated to the social, cultural, educational or economic development of Indians who for the most part live on reserves. In fact, we speculate that most of the student body of the XXXXXXXXXX does not consist of Indians. Furthermore, due to the distance of hundreds of kilometres between XXXXXXXXXX, it appears that the Indians who were students at this board were not resident on reserve while at school. The fact that there are no high schools on the reserves served by the XXXXXXXXXX is, in our view, not significant in determining whether XXXXXXXXXX employment income was connected to a reserve.
Thus, it is our view that XXXXXXXXXX employment income from the employment described above was not exempt from taxation.
R. Albert
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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