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.
Compensation and Member Services Section 940237
Royal Canadian Mounted Police L. Holloway
1200 Vanier Parkway (613) 957-8953
Ottawa, Ontario
K1A 0R2
Attention: J.D.M. Séguin, Inspector Officer in Charge
April 6, 1994
Dear Sirs:
Re: "Land set aside" relative to native member claims
This is in reply to your letter dated January 25, 1994, requesting clarification of the phrase "land set aside" for land claims. In particular you had mentioned that a member of your Yukon Division has been denied an income tax claim based on the fact that time worked on "land set aside" did not satisfy the definition of "reserve land" for purposes of tax exemption.
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 title is vested in Her Majesty and that has been set aside by Her Majesty for the use and benefit of a band. The Department of Indian and Northern Affairs (DINA) often 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. These lands have set boundaries, just as reserves do, but they are not reserves and are not treated as reserves for purposes of the Income Tax Act. Accordingly, a status Indian working on land set aside would be subject to the assessment of income taxes on the related employment income.
In spite of this interpretation, there exists a moratorium on the collection of taxes for Yukon status Indians. This moratorium basically extends to status Indians who are members of the Yukon First Nation, working or living on "land set aside", the same collection treatment as status Indians working on reserves. Therefore, for tax collection purposes, Yukon status Indians living on, or performing work on, reserve lands must not be distinguished from those living on or working on "lands set aside" for settlement purposes. Should you have additional questions concerning this moratorium, we suggest that you contact the district office closest to the area concerned.
We have also enclosed for your reference a copy of a letter issued on December 15, 1993, by Assistant Deputy Minister, Mr. Denis Lefebvre, to various interested parties regarding the application of the Indian Act tax exemption as a result of the Supreme Court of Canada's decision in the Glenn Williams case. This letter and its attachments provides guidelines to assist the Indian community in applying the exemption and may be of assistance to you when determining which of your other members may be exempt from tax.
We trust that these comments are of assistance to you.
Yours truly,
R. Albert
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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