Principal Issues:
A. Whether XXXXXXXXXX are municipalities.
B. Whether XXXXXXXXXX can be considered to be a municipality in Canada for the purposes of paragraph 149(1)(c) of the Income Tax Act.
C. Whether a corporation the XXXXXXXXXX Settlements and XXXXXXXXXX own is exempt from Part I tax under paragraph 149(1)(d.5) of the Act.
D. Whether elected councilors of each Settlement and elected officers of the XXXXXXXXXX are elected officers of an incorporated municipality.
Position:
A. In the particular circumstances, Yes
B. In the particular circumstances, Yes
C. Unable to rule
D. Unable to rule
Reasons:
A. Councils have the authority to make by-laws respecting the geographic area of a Settlement and may make by-laws concerning a number of areas typical of municipalities including general governance; health, safety and welfare of Settlement residents; public order and safety; fire protection; nuisance and pest control; animal control; refuse disposal; public health; parks and recreation; regulation of businesses; and land use, water and sewer. Each of the Settlements have enacted a number of By-laws within their jurisdiction
B. The XXXXXXXXXX has created a number XXXXXXXXXX Policies with respect to the governance of the Settlements. Policies respecting utilization of Settlement resources and property taxation also have been implemented. The XXXXXXXXXX has also created various other policies containing model by-laws of general application to all of the Settlements.
C. Whether the corporation's income from activities carried on outside the geographical boundaries of the "municipality" for a particular period exceeds 10% of its income for the period is a question of fact on which we are unable to rule.
D. If the Settlement Councils and the XXXXXXXXXX are municipalities elected officers thereof are elected officers of an incorporated municipality for the purposes of determining whether an allowance is exempt from tax under paragraph 81(3)(a) of the Act.