10 January 1993 Income Tax Severed Letter 9321447 - Yukon Indians — Lands Set Aside — Moratorium

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.

                                                 January 10, 1994

  SURREY TAXATION CENTRE                         HEAD OFFICE
  Assessing Division                             Rulings Directorate
                                                 (613) 957-8953

  Attention:  Pat Docking, Group Head
           TPS Section

                                                 932144

Taxation of Yukon Status Indians on Lands Set Aside for Land Claims

We are writing to you in reply to your memorandum of July 26, 1993 in which you requested our view on the taxation of Yukon Status Indians on lands set aside for land claims. You noted that this issue first came to your attention in September of 1992 at which time you spoke with Glen Thornley of this office.

Our Comments

We note that Mr. Peter Garrett of the Department of Indian and Northern Affairs ("DINA") enquired of you on June 18, 1993 as to what you have found out concerning land set aside in the Yukon. At the present time we are in the process of replying directly to Mr. Garrett's office in response to an enquiry to the Surrey Taxation Centre dated January 19, 1993 which was forwarded to us. His concern at that time was the impact of the Glenn Williams case. We will be responding to Mr. Alan McDiarmid (Regional Director, Yukon Region, Indian and Inuit Affairs, DINA), who wrote to us on March 1, 1993 and expanded on the concerns raised by Mr. Garrett.

As Mr. Thornley stated in September of 1992, land which has been set aside for land claims does not constitute a reserve. A reserve, a term which is defined in the Indian Act, is a tract of land whose legal title is vested in Her Majesty and that has been set aside by Her Majesty for the use and benefit of a band. DINA refers to "band lands" and describes them as lands owned by the federal government and controlled by DINA, which have been set aside for Indians under the Territorial Lands Act. They have set boundaries just as do reserves. These lands will be "settlement lands" under land claims and DINA treats these lands as reserves. However, such lands are not reserves and are not treated as reserves for purposes of the Income Tax Act.

For 1985 and subsequently, a remission order (named The Indian and Bands in Certain Settlements) deems certain identified locations to be reserves. However, none of these locations is in the Yukon.

In your record of conversations, you noted that a few people have referred to a purported moratorium for Indians in the Yukon. The only moratorium of which we have been informed is one concerning the collection of taxes. It was an informal agreement between DINA and Revenue Canada, and it initially applied with respect to taxes outstanding at December 31, 1987 although, as we understand, it was later extended. A remission order (named the Indian Statute- Barred Income Tax Assessment Remission Order) actually cancelled assessed federal tax, penalty and interest. Staff in your District Office Collections Division should be knowledgeable of any present moratorium on the collection of taxes. However, we are not aware of a moratorium on the assessment of taxes on Yukon Indians.

R. Albert for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch