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.
ADM'S OFFICE (3) #93-5111T and #93-1364D RETURN TO RULINGS, ROOM 303, MET. BLDG.
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Dear XXXXXXXXXX
I am responding to your recent letters addressed to the Honourable Garth Turner, Minister of National Revenue, and Mr. Pierre Gravelle, Deputy Minister, in which you expressed concerns with respect to the consultation process regarding the taxation of status Indians as a result of the Williams case.
The Supreme Court of Canada, in the Sparrow case to which you referred, stated that the Government of Canada must justify proposed infringements on constitutionally protected aboriginal and treaty rights. The Department does not intend to alter any aboriginal or treaty rights. The Department does not intend either to amend the policy which is at the base of the tax exemption in Section 87 of the Indian Act. The sole purpose of the Department is to properly apply the Income Tax Act and Section 87 of the Indian Act as a result of the Williams case.
Notwithstanding that the Sparrow decision does not have application in this instance since we do not intend to infringe on constitutionally protected aboriginal and treaty rights but to merely interpret a statutory provision, we recognize that the consultative approach is the best way to develop our guidelines and therefore the Department has consulted with many individuals and organizations.
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• It was not intended to limit the consultations in any way. The Department is interested in hearing from all interested parties and has not limited itself to the views of any one group. The Department has consulted with interested parties across the country and we have received many constructive written representations. We would be pleased to review your comments on any factors you consider are relevant in connecting employment income to a reserve. I would invite you to write to Mr. Bryan Dath of the Department immediately as we intend to conclude the consultation process very soon, following which draft guidelines will be made available to a large number of Indian organizations and interested parties. His address is:
B.W. Dath, DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch Revenue Canada, Customs, Excise and Taxation Room 300 88 Metcalfe Street Ottawa, Ontario K1A 0L8
You have also commented on the draft working paper entitled "A Working Paper on Indian Government Taxation". As this paper was prepared by the Department of Finance, I will make them aware of your concerns.
I would like to reiterate that it would be most useful to have your input in the development of the guidelines. I am confident that with the participation of interested parties an appropriate application of the Court decision will be obtained.
Yours sincerely,
Denis Lefebvre Assistant Deputy Minister Legislative and Intergovernmental Affairs Branch
October 15, 1993 Y.S. #93-5111T and #93-1364D
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© Sa Majesté la Reine du Chef du Canada, 1993
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