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) ADM 931107 RETURN TO RULINGS, ROOM 303, MET. BLDG.
XXXXXXXXXX
Dear XXXXXXXXXX
I am replying to your letter of September 6, 1993, in which you expressed concerns with the Department's interpretation of the Williams case in respect to the taxation of status Indians.
It is your view that the Department is changing its policy on the taxation of Indians, particularly with respect to Indians who live and work off reserve but whose employer is located on reserve. You expressed the view that the location of the employer may well be the determining factor in such a case, following the reasoning in the Nowegijick case. You feel that the Department is obligated to consult with native people prior to making the change outlined above. In addition, you are concerned with our timeframe for resolution of this issue.
I can assure you that the Department does not intend to alter any aboriginal or treaty rights, nor does it intend to amend the policy which is at the base of the tax exemption in Section 87 of the Indian Act. The Department's objective is to properly apply the Income Tax Act and Section 87 of the Indian Act following the decision in the Williams case.
We recognize that the consultative approach is the best way to develop Departmental guidelines. The Department wishes to hear from all interested parties and is currently consulting with individuals and organizations across the country. We have already received many constructive written representations, including your views, on factors considered relevant in connecting employment income to a reserve. Our recent meeting also provided for a frank, open and detailed exchange of views.
When I announced on December 29, 1992, that the Department would be changing the way it applies the Indian Act tax exemption, I also stated that the Department recognized that some Indians may be negatively affected by its application of the Williams decision. At that time, a one-year period of transition was provided which allowed Indians until December 31, 1993, to make any desired changes in their affairs.
I would like to thank you for your input in the development of the guidelines. I intend to conclude the consultative process in the next few weeks, following which draft guidelines will be made available to you and other interested parties.
Yours sincerely,
Denis Lefebvre Assistant Deputy Minister Legislative and Intergovernmental Affairs Branch
October 5, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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