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.
June 7, 1994
Surrey Taxation Centre Head Office
Section 541 Rulings Directorate
B. Kerr
(613) 957-8953
941439
Student Financial Assistance received by a Status Indian
This is in response to your memorandum of May 26, 1994, wherein you requested that we verify whether the funding received by XXXXXXXXXX, a status Indian, from the Government of the Northwest Territories to attend XXXXXXXXXX College would be exempt.
The Department's position regarding the tax treatment of education grants or assistance is based on the case of Deanna Greyeyes v. Her Majesty the Queen, (DTC 78 6043), which held that a scholarship paid to a status Indian by the Department of Indian Affairs may be exempt from tax by virtue of section 87 and subsection 90(1) of the Indian Act. Section 87 of the Indian Act provides that the personal property of an Indian situated on a reserve is exempt from taxation. Paragraph 90(1)(b) of the Indian Act provides that, for the purposes of section 87, personal property that was given to an Indian under a treaty or agreement between a band and Her Majesty shall be deemed always to be situated on a reserve. Accordingly, any scholarship paid to a status Indian under an agreement between a band and Her Majesty should be exempt from taxation. However, scholarships which the Indian receives which are available to all persons including non-Indians are taxable.
It is a question of fact whether a scholarship for education received by a status Indian, XXXXXXXXXX in this case, is received under a treaty or agreement between a band and Her Majesty and is exempt or is received under some other program and is taxable. A review of documentation pertaining to the funding received by XXXXXXXXXX from the Government of the Northwest Territories, and also any agreements between the Government of the Northwest Territories and a particular band concerning any funding would be required to resolve this issue.
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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