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1987-006-e.html
SERVICES PAY DIRECTIVE: 1987-006 (04)
January 26, 1987
Ottawa,
Canada
K1A 0S5
SUBJECT: Indians Working on a Reserve
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1
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PURPOSE
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1.1
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The purpose of this directive is to advise departments of the reporting
requirements to be utilized by employers regarding Indians working on a
reserve.
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2
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BACKGROUND
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2.1
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Numerous queries have been received concerning the confusion involved with
current T4 reporting practices. In most cases, Supply and Services is advised
of a change of work location for a status Indian after the fact. As a result,
T4s do not accurately reflect the true situation to Taxation. When status
Indians in these circumstances file their T1 tax return, processing delays
occur while Revenue Canada seeks clarification of this status.
Negotiations with Taxation officials to address this problem have produced
the following administrative arrangement: Taxation officials (Assessing and
Inquiries Directorate) will accept from Indians working on a reserve the T4
produced by DSS with an accompanying letter from their employing
Department.
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3
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PROCEDURES/INSTRUCTIONS
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3.1
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Effective with the 1986 taxation year, departments must provide their employees
with a letter, under their letterhead, addressed to Revenue Canada, identifying
the amount of income earned while working on a reserve and exempt from taxation
under the Indian Remission Order P.C. 1985-2446.
Employees should be advised that they must provide this letter to Revenue
Canada when filing their income tax T1 return.
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4
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INQUIRIES
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4.1
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Any queries on the foregoing should be directed to Advisory Services - Pay
(953-2194).
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Original Signed by
E.S. Zenowski
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E.S. Zenowski
Director
Personnel
Products Branch
Accounting, Banking and Compensation Directorate
Reference: CJA 9007-7
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