Principal Issues: Has there been a recent change to the taxation of pension income and US Social Security payments received by a status Indian resident in Canada?
Position: No
Reasons: There have no changes to the Income Tax Act, the Canada-US Income Tax Convention or the Indian Act Exemption for Employment for Employment Income Guidelines that would affect the taxation of pension income and US Social Security payments received by a status Indian resident in Canada.
Signed on February 2, 2004
XXXXXXXXXX
Dear Colleague:
I write in reply to correspondence of December 12, 2003, sent from your office to the office of my predecessor, the Honourable Elinor Caplan, outlining the concerns of XXXXXXXXXX about the position of the Canada Revenue Agency (CRA) as it relates to the taxation of pension income and U.S. social security payments received by status Indians resident in Canada.
There have been no changes to the Income Tax Act, the Canada-U.S. Income Tax Convention or the Indian Act Exemption for Employment Income Guidelines that would affect the positions expressed in the letter of January 25, 2000, issued by the Income Tax Rulings Directorate or in the letter of June 5, 2000, XXXXXXXXXX received from Mr. Bill McCloskey, Assistant Commissioner of the Policy and Legislation Branch. The pension income and U.S. social security payments received by a status Indian resident in Canada will continue to be taxed in the manner described in our letters.
I trust that the above information will assist you in replying to XXXXXXXXXX.
Sincerely,
Hon. Stan Keyes, P.C., M.P.
c.c.: Minister's Office
Political Assistant
Kimberly Duval
957-8982
2003-005244
December 18, 2003