18 July 1994 External T.I. 9410785 - INCOME FROM AN OFFICE

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 fees received as Committee of an estate must be included in income.

Position TAKEN:

Yes

Reasons FOR POSITION TAKEN:

Taxable as income from an office under 5(1).

			5-941078

XXXXXXXXXX M. Shea-DesRosiers

July 18, 1994

Dear Sir:

Re: Committee fees for 1987, 1990 and 1992

This is in reply to your letter of April 19, 1994 wherein you inquire as to whether fees received as Committee of an estate should be included in computing the income of a taxpayer. We apologize for the delay in replying to your letter. All references to statute are to the Income Tax Act S.C. 1970-71-72,c.63 as amended consolidated to June 10, 1993 (the "Act").

Subsection 5(1) of the Act states that,

"..., a taxpayer's income for a taxation year from an office or employment is the salary, wages and other remuneration, including gratuities, received by him in the year."

Pursuant to subsection 248(1) of the Act the word "office" means the position of an individual entitling him to a fixed or ascertainable stipend or remuneration.

Fees earned by an individual as a result of his appointment as Committee of an estate are taxable as income from an office under subsection 5(1) of the Act. Therefore in your situation, the fees earned as Committee of the estate of your aunt should have been included in the computation of your income for 1987, 1990 and 1992.

Your request for administrative relief should be addressed to your District Office who is responsible for replying to such request. Accordingly, we are sending your letter and a copy of our reply to the Ottawa District Office who will determine whether your request for waiving the penalties and interest meets the guidelines set by the Department.

Should you need to contact the District Office, you can call Mr. François Bélisle, Fairness Package Section, at (613) 598-2029 or 1-800-267-8440 (general number).

We trust the above comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Rulings Directorate