ARCHIVED Services Pay Directive: 1987-006 (04)

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January 26, 1987

Ottawa, Canada
K1A 0S5

SUBJECT : Indians Working on a Reserve


1.1 The purpose of this directive is to advise departments of the reporting requirements to be utilized by employers regarding Indians working on a reserve.


2.1 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.


3.1 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.


4.1 Any queries on the foregoing should be directed to Advisory Services - Pay (953-2194).

Original Signed by
E.S. Zenowski

E.S. Zenowski
Personnel Products Branch
Accounting, Banking and Compensation Directorate

Reference: CJA 9007-7