2014-0537591E5 Indian Employment and Pension Income

Principal Issues: Whether additional information from taxpayer's employer will change our previous position in document 2013-050790

Position: No

Reasons: New information from employer does not provide details on why the income should be exempt.

Author: Townsend, Ann
Section: 81(1)(a)

XXXXXXXXXX
                                                                                                                                                      2014-053759
                                                                                                                                                       A. Townsend

July 30, 2014

Dear XXXXXXXXXX:

This is in reply to the information that you submitted to our office on June 21, 2014, and your request that we reconsider the position taken in our memo addressed to XXXXXXXXXX at the XXXXXXXXXX Tax Centre, dated March 10, 2014.  The new information you have submitted includes a new letter from your employer advising that all Indians employed during the same employment period as yourself were exempt from income tax. 

Unfortunately the new letter from your employer does not include any information or details on why the exemption applied to the Indian employees and as a result our position in our memo dated March 10, 2014 has not changed.  However, if your employer can provide you with additional information we would be pleased to reconsider our position at that time.  Please send any additional information concerning this matter to XXXXXXXXXX at the XXXXXXXXXX Tax Centre for further consideration.

We would also like to advise you of the time limit for filing an objection to the 2013 taxation year.  The time limit for filing an objection for an individual is whichever of the following two dates is later:

*     one year after the date of the return's filing deadline; or
*     90 days after the day we sent the notice of assessment or notice of determination.

An objection is filed by using one of these options:

*     online submission, by accessing “My Account” from the Canada Revenue Agency (CRA) website;  select the option "Register my formal dispute"; or
*     use Form T400A, Objection – Income Tax available on the CRA website at:  http://www.cra-arc.gc.ca/E/pbg/tf/t400a/t400a-12e.pdf.

We trust that this information will be of assistance to you. 

Yours Truly,

Roger Filion, CPA, CA
Manager
Non-Profit Organizations and Aboriginal Issues
Financial Industries Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

cc: XXXXXXXXXX

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