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.
951456
XXXXXXXXXX A.M. Brake
August 3, 1995
Dear XXXXXXXXXX:
Re: Indian Reserves and Donee status for Charitable Donations
This will reply to your letter of February 13, 1995 to our Charities Division which has been referred for our reply. You asked for information relating to Indian reserves having municipal status as a public body performing a function of government in Canada, as set out in paragraph 149(1)(c) of the Income Tax Act, in regards to being an eligible donee for purposes of receiving charitable gifts and issuing receipts for income tax purposes. We apologize for the delay in replying.
The Department's position, as set out in paragraph 11 of Interpretation Bulletin IT-62, is that band councils that have reached the advanced stage of development required by section 83 of the Indian Act will qualify for exemption under paragraph 149(1)(c) of the Act. Although section 83 of the Indian Act was amended in 1988 deleting the reference to the advanced stage of development, a band council will continue to qualify under paragraph 149(1)(c) of the Act if it previously qualified under the circumstances set out in Interpretation Bulletin IT-62.
For those band councils not "grandfathered", our present policy is to regard Indian band councils as public bodies performing a function of government for purposes of paragraph 149(1)(c) of the Act, where they exercise or have exercised the powers authorized under both sections 81 and 83 of the Indian Act, having passed at least one by-law under each of these sections.
The Department's position regarding band councils issuing donation receipts pursuant to the charitable gift provisions of the Income Tax Act is that, if it qualifies as a public body performing a function of government in Canada, a band council may be regarded as a Canadian Municipality for the purposes of both paragraph 118.1(1)(d) and subparagraph 110.1(1)(a)(iv) of the Income Tax Act and may issue donation receipts under those provisions for donations received.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
cc. R. A. Davis
Director
Charities Division
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