J.D. Jones (613)957-2104 JUL 28 1988
Dear Sirs:
Re: Commissioned Salesperson
This is in reply to your letter of June 14, 1988 wherein you requested the Department's opinion as to whether commissions received by commissioned salesperson employed by an investment dealer on trades conducted on his own behalf are non-taxable.
Paragraph 27 of the Department's Interpretation Bulletin IT-470R reflects our position with respect to commissions received by a sales employee on merchandise acquired from his employer for his personal use and the commission received by a life insurance. salesperson on a life Insurance policy owned by the salesperson when the salesperson is required to make the required premium . payments on that policy.
However, we are not prepared to extend the same treatment to securities salespeople, because the securities which the salespeople purchase through their employers are not in the nature of merchandise or life insurance policies sold by the employer to the employee, but are properties acquired by the salespeople in the marketplace (stock exchange) with the brokerage assistance of the employer.
We trust the foregoing will be of assistance to you.
Yours truly,
ORIGINAL SIGNED BY
P.D. FUOCO for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch