ADM'S OFFICE (3) RETURN TO RULINGS, ROOM 303, MET. BLDG.
XXXXXXXXXX
Dear XXXXXXXXXX
I am replying to your letter of January 21, 1993 in which you request assistance regarding tax matters of one of your constituents, a status Indian who, while working for XXXXXXXXXX often performed part of his duties on a reserve. He is of the view that he is entitled to a refund of taxes for those periods of time spent performing his duties on a reserve.
From 1983 to December 31, 1992, the Indian Remission Order (the "Order") has provided for the remission of taxes paid on employment income which was reasonably attributable to duties performed on a reserve by a status Indian whose employer was not situated on a reserve. The words `duties performed on a reserve' include only those duties which are physically performed on the reserve. They do not include time spent in travelling to and from the reserve to perform duties on the reserve. In our view the Order also contemplates an allocation of employment income for the year, which would include annual and sick leave, based on the performance of duties both on and off the reserve.
Until just recently, a taxpayer claiming a refund for a taxation year had to do so within three years of the end of the particular year. However, under the Fairness package an individual can make a refund claim in most instances for all taxation years after 1984 without regard to the three-year limitation.
As it will be up to the individual to support his claim for a refund, it will be necessary for him to make contact with a District Taxation Office, probably in this instance the XXXXXXXXXX office. Officials in that office will be able to review the circumstances and give advice as to what documentation is necessary to support a claim for services performed on a reserve.
As you indicate in your letter, as a result of the Glenn Williams case factors connecting the employment income to the reserve will, after 1992, have to be present for the income to be tax exempt. If your constituent is still employed by the XXXXXXXXXX and is still performing some of his services on a reserve it is likely that a portion of the employment income will be exempt.
I trust that the foregoing will be of assistance to you in replying to your constituent's enquiry. Should you require additional information in this matter, please contact Bryan Dath, Director of the Business and General Division of the Rulings Directorate. His telephone number is (613) 957-2089.
Yours sincerely,
Denis Lefebvre Assistant Deputy Minister Legislative and Intergovernmental Affairs Branch
February 10, 1993