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.
950268
XXXXXXXXXX A.M. Brake
August 2, 1995
Dear XXXXXXXXXX:
This is in reply to your letter of January 17, 1995 and is further to that of September 26, 1994 and Mr. Denis Lefebvre's reply thereto dated October 31, 1994. I apologize for the delay in replying.
As you know Section 87 of the Indian Act provides that, the following property is exempt from taxation:
(a) the interest of an Indian or a band in a reserve or surrendered lands; and
(b) the personal property of an Indian or band situated on a reserve.
No Indian or band is subject to taxation in respect of ownership, occupation, possession or use of property mentioned in paragraphs a) or b) or is otherwise subject to taxation in respect of any such property.
Mr. Lefebvre's letter explained that the Indian Act Exemption for Employment Income Detailed Guidelines (the "Guidelines") have application to duties performed on a reserve, a term defined in the Indian Act as a tract of land whose title is vested in Her Majesty for the use and benefit of a band. As the lands, to which you refer, do not presently qualify as a reserve, we are unable to treat them as such for purposes of the Guidelines.
We are unable to change or materially alter the interpretation of the definition of "reserve" as defined in subsection 2(1) of the Indian Act and can only apply the Guidelines as they relate to employment income earned on a reserve.
We regret that our response could not have been favourable.
Yours truly,
B.W. Dath
Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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