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.
Principal Issues: Whether an Indian registered under Bill C-3 may be exempt for any period prior to January 31, 2011, the effective date at which that Bill became law?
Position: No.
Reasons: An Indian registered under the Gender Equity in Indian Registration Act (previously Bill C-3), may only benefit from the exemption as of the effective date of that Act, that is, January 31, 2011, - the earliest date at which they are entitled to be registered - and not before that date.
February 5, 2014
XXXXXXXXXX
Dear XXXXXXXXXX:
The office of your Member of Parliament, XXXXXXXXXX, sent me a copy of your correspondence, which I received on November 26, 2013, about the tax exemption available to Aboriginal individuals registered or entitled to be registered as Indians for purposes of the Indian Act. You ask me to review the decision to deny your request to adjust the taxes paid on the employment income you earned before your registration date of XXXXXXXXXX.
Section 87 of the Indian Act provides a tax exemption for the personal property of an Indian, which includes employment income, situated on a reserve. An Indian is defined in the Indian Act as a person who is registered or entitled to be registered as an Indian. Therefore, the Canada Revenue Agency applies the tax exemption at the earliest date that an individual became entitled to registration under the Indian Act, regardless of the actual date of registration.
The Gender Equity in Indian Registration Act ("Gender Equity Act"), previously Bill C-3, changed the Indian Act by permitting a new group of individuals to register effective January 31, 2011. For individuals allowed to register as a result of these recent changes, the tax exemption is available as of January 31, 2011, which is the earliest date they are entitled to be registered. This information is also available at www.cra.gc.ca/brgnls/ndns-eng.html.
I understand that the Department of Aboriginal Affairs and Northern Development Canada recently sent you a letter confirming that, due to the recent changes made by the Gender Equity Act, you are now registered under the Indian Act. This means that your income that is situated on a reserve is exempt from tax as of January 31, 2011, but not before that date.
I trust that the information I have provided clarifies the CRA's position on this matter.
Yours sincerely,
Kerry-Lynne D. Findlay, P.C., Q.C., M.P.
c.c.: XXXXXXXXXX
House of Commons
Ottawa ON K1A 0A6
Anna Messore
613.948.2227
2013-051453
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