11 August 1994 Ministerial Letter 9417048 - INDIAN GUIDELINES - EMPLOYMENT INCOME

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.

Principal Issues:

Suggestion re Indian employment income guidelines - remove gender bias which is inherent in requiring organizations to be controlled by bands or councils.

Position TAKEN:

Bands are referred to in the fourth guideline since bands have reserves, thus providing a connection to reserves.

Reasons FOR POSITION TAKEN:

ADM'S OFFICE (3)

RETURN TO RULINGS, ROOM 303, MET. BLDG.

AUTHOR
SUBJECT OR CORPORATE FILE

August 11, 1994

XXXXXXXXXX

Dear XXXXXXXXXX:

I apologize for the delay in replying to your letter of January 19, 1994, in which you made representations on behalf of XXXXXXXXXX concerning the draft guidelines on the application of the Indian Act tax exemption for employment income. Unfortunately, I was not in a position to address your specific concerns until we had an opportunity to review all the feedback we received as a result of issuing these guidelines.

We have now reviewed that feedback and issued the final version of the guidelines on June 29, 1994, a copy of which was sent to your organization.

In your letter, you expressed concern that the guidelines contained an inherent gender bias. The basis for this comment appears to be your view that Indian bands are male-dominated organizations.

XXXXXXXXXX

A reason for including bands or tribal councils of bands in the fourth guideline is that bands typically have reserves. Thus, when applying the guidance provided by the Supreme Court of Canada in the 1992 Williams case that one needs to consider and weigh the factors which connect an Indian's income to a reserve, the fact that a band has a reserve is considered significant. The guideline extends further to also apply to organizations under the control of a band on a reserve or a tribal council of such bands. Generally, other organizations are not as connected to a reserve.

Where an organization is involved, not only must the organization be connected to a reserve by being controlled by a band or tribal council, it must be dedicated exclusively to the social, cultural, educational, or economic development of Indians and those Indians must for the most part live on reserve. Although there may be a variety of reasons for Indians not living on reserve, it is only the property of an Indian situated on a reserve which is exempt from taxation.

I trust that I have explained the Department's position and thank you for your comments.

			Yours sincerely,
		Denis Lefebvre
		Interim Assistant Deputy Minister
		Policy and Legislation Branch

J.D. Brooks
957-2103
July 8, 1994
941704
ADM 94-0098