Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Does an Inuit qualify for the Indian Act exemption?
Position TAKEN:
No, Indian is defined in the Indian Act and specifies that an Indian does not include an Inuit.
Reasons FOR POSITION TAKEN:
Definition in the Indian Act.
5-950636
XXXXXXXXXX R. Albert
April 13, 1995
Dear XXXXXXXXXX:
Re: Indian Act Exemption
We are writing in reply to your letter of March 2, 1995, wherein you requested our views as to whether your employment income was exempt from taxation by virtue of the Indian Act.
You have indicated that you are Inuit and that you are registered with XXXXXXXXXX Over the past years, you have been employed with XXXXXXXXXX which is located on an Indian reserve and you have carried out your employment duties on this reserve.
By virtue of paragraph 81(1)(a) of the Income Tax Act and section 87 of the Indian Act, the following property is exempt from taxation, namely:
a)the interest of an Indian or a band in a reserve or surrendered lands; and
b)the personal property of an Indian or band situated on a reserve.
No Indian or band is subject to taxation in respect of ownership, occupation, possession or use of such property. The courts have determined that, for the purposes of section 87 of the Indian Act, employment income is personal property.
Subsection 2(1) of the Indian Act provides definitions for purposes of the Indian Act and states that "`Indian' means a person who pursuant to this Act is registered as an Indian or is entitled to be registered as an Indian". Subsection 4(1) of the Indian Act specifies that "a reference in this Act to an Indian does not include any person of the race of aborigines commonly referred to as Inuit". Accordingly, the exemptions from taxation provided to Indians under the Indian Act do not apply to persons that are Inuit.
Consequently, as you are not an Indian, you do not qualify for the tax exemption available to Indians under paragraph 81(1)(a) of the Income Tax Act and section 87 of the Indian Act.
We trust that these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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