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Briefly, Guideline 4 requires a) that the employer is resident on a reserve; b) that the employer is an Indian band which has a reserve, or a tribal council representing one or more Indian bands which have reserves, or an Indian organization controlled by one or more such bands or tribal councils, if the organization is dedicated exclusively to the social, cultural, educational, or economic development of Indians who for the most part live on reserves; and c) that the duties of the employment are in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

In order to qualify for exemption from taxation, there must be a connection between the employment income and a reserve. ...

Also, the duties of the employment must be in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

We also wish to acknowledge our telephone conversation on September 9, 1991 (Eisner 19(1) in which we clarified the circumstances of your case, as set out below. 24(1) In the latter case, the employees are not considered entitled to claim "office in home" expenses as referred to in paragraphs 2 and 3 of the enclosed Interpretation Bulletin IT-352R "Employees Expenses Incurred in Performing Duties of Office or Employment" as, the employer considers that in view of the limited use of the residence required in connection with a technician's  employment duties, the technician is not required to maintain an office in the home 24(1) Accordingly, you have asked us to clarify the Department's position on the following points setting out the relevant provisions of the Income Tax Act 1.         ...

Consistent with these comments, it is also our view that the purchaser would not be allowed to deduct any costs incurred in connection with the capital obligation. ...

The tax court judge concluded that the appellant did not use the subject land in connection with any business.  ...

XXXXXXXXXX 971988 XXXXXXXXXX Attention: XXXXXXXXXX XXXXXXXXXX, 1998 Dear Sirs: Re: XXXXXXXXXX Partnership versus Joint Venture This is in reply to your letter dated XXXXXXXXXX, wherein you requested advance income tax rulings on behalf of XXXXXXXXXX, in connection with the proposed transactions described below. ... To the best of your knowledge and that of the taxpayers involved, none of the issues involved in this ruling (i) is in an earlier return of the taxpayers or a related person, (ii) is being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayers or a related person, (iii) is under objection by the taxpayers or a related person, (iv) is before the courts or, if a judgement has been issued, the time limit for appeal to a higher court has not expired, (v) is the subject of a ruling previously issued by the Directorate. ...

For the employees, the connection to a reserve is that the employer is resident on a reserve and the Indian is employed in a non-commercial activity for the social, cultural, educational, or economic development of Indians who for the most part live on reserves. ... GUIDELINE 4 WHEN: •THE EMPLOYER IS RESIDENT ON A RESERVE; AND •THE EMPLOYER IS:-AN INDIAN BAND WHICH HAS A RESERVE, OR A TRIBAL COUNCIL REPRESENTING ONE OR MORE INDIAN BANDS WHICH HAVE RESERVES, OR-AN INDIAN ORGANIZATION CONTROLLED BY ONE OR MORE SUCH BANDS OR TRIBAL COUNCILS, IF THE ORGANIZATION IS DEDICATED EXCLUSIVELY TO THE SOCIAL, CULTURAL, EDUCATIONAL, OR ECONOMIC DEVELOPMENT OF INDIANS WHO FOR THE MOST PART LIVE ON RESERVES; AND •THE DUTIES OF THE EMPLOYMENT ARE IN CONNECTION WITH THE EMPLOYER'S NON-COMMERCIAL ACTIVITIES CARRIED ON EXCLUSIVELY FOR THE BENEFIT OF INDIANS WHO FOR THE MOST PART LIVE ON RESERVES; ALL OF THE INCOME OF AN INDIAN FROM AN EMPLOYMENT WILL USUALLY BE EXEMPT FROM INCOME TAX. ...

It should be noted that paragraph 6(1)(a), which requires that the value of "other benefits of any kind whatever" enjoyed by the taxpayer "in respect of, in the course of, or by virtue of" an office or employment be included in income, has been interpreted by the Supreme court of Canada, in the case of The Queen v Savage 83 DTC 5409, as a phrase with the widest possible scope intended to convey some connection between two related subject matters.       ... The fact that a corporation, carrying on an active business and holding certain property (i.e. investments) unrelated to the business, uses the income from property in connection with the operation of the active business does not mean that the property is "incident to or pertains to" the active business. ...

In our view, there is no direct connection between the payer's income and the periodic payments of alimony and maintenance and, therefore, the tax status of the payer's income is not a factor relevant in determining whether alimony and maintenance income received should be exempt. ...