14 April 1994 Ministerial Letter 9408068 - INDIANS - ABORIGINAL AND TREATY RIGHTS

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.

ADM'S OFFICE (3) 94-0426D

RETURN TO RULINGS, ROOM 303, MET. BLDG.

AUTHOR
SUBJECT OR CORPORATE FILE

April 14, 1994

XXXXXXXXXX

Dear XXXXXXXXXX:

Mr. Pierre Gravelle, Deputy Minister of Revenue Canada, Customs, Excise and Taxation, has asked me to reply to your letter of March 7, 1994. You expressed concern 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.

XXXXXXXXXX

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 met with interested parties across the country and we have received many constructive written representations from the Indian community.

As a result of this input and a thorough analysis of the Williams case, the attached guidelines were developed. These guidelines deal with the administration of the exemption set out in the Indian Act following the Williams decision. The goal of these guidelines is to clarify which types of employment situations qualify for the exemption.

When the above-mentioned guidelines were released by the Department in December, 1993, interested parties were invited to comment on them. Upon considering any representations received, the guidelines will be finalized.

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.

		Yours sincerely,
		Denis Lefebvre
		Assistant Deputy Minister
		Legislative and Intergovernmental
		  Affairs Branch

Att.

c.c. Mr. David Dodge

Deputy Minister
Department of Finance

C. Chouinard
957-2098
April 5, 1994