21 May 1997 Internal T.I. 9531677 - INDIAN LIVING AT KUUJJUARAPIK

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.
		May 21, 1997

Laval Tax Services Office HEADQUARTERS
Appeals Division J.D. Brooks
957-2103
Attention: Johanne Desmarais
953167

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This is in reply to your memorandum of October 10, 1995 in which you referred to the taxpayer identified above. As we previously stated by telephone, we apologize for the delay in replying.

Facts

Our understanding of the facts is as follows:

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Our Views

Lands described as Category IA lands under the Cree-Naskapi (of Quebec) Act are treated as being reserves for purposes of applying the Indian Act Exemption for Employment Income Guidelines. The community of Whapmagoostui is one of eight communities recognized by the Department of Indian Affairs and Northern Development ("DIAND") as lying within the exterior boundaries of Category IA lands.

There appears to be some confusion as to the distinction between Whapmagoostui (Great Whale River) and Kuujjuarapik (Poste-de-la-Baleine). We understand that Kuujjuarapik is an Inuit community that is adjacent to the Cree community of Whapmagoostui. Under the Cree-Naskapi (of Quebec) Act, "Whapmagoostui" is the Cree name of the band which is known in English as "Great Whale River", and in French as "Poste-de-la-Baleine". We have been advised by a person in the Quebec regional office of DIAND that "Bande de Poste-de-la-Baleine" is a name that is no longer used; instead, "Great Whale River" is now used to refer to the Inuit settlement, while "Whapmagoostui" is used to refer to the Cree settlement. Regardless of which community is under consideration, one must know the precise location where a person lives and works since DIAND has advised us that parts of each community are in Category IA lands and parts of each are in Category IB lands.

Your conclusion that Kuujjuarapik is not recognized as an Indian reserve or settlement appears to be generally correct. Nevertheless, we note that a similar problem to the one facing you was dealt with in 1996 by the Quebec Region of Revenue Canada. The difficulty was that the province of Quebec recognized certain areas as being reserves although they did not constitute reserves within the meaning assigned by the Indian Act nor did they qualify for similar treatment pursuant to the Cree-Naskapi (of Quebec) Act. In 1996, Quebec revised its "guide de l'employeur - retenues sur la paie et cotisations de l'employeur" in an effort to have its definition of "reserve" conform with that used by Canada. We understand that our Quebec Region, in considering the case they were facing, chose to use Quebec's definitions for years prior to 1996.

Thus it would seem that the best approach would be to resolve the current issue through our Quebec Regional office.

Regarding 1996 and subsequent years, we note that Quebec's "guide de l'employeur ..." describes Whapmagoostui as Category IA land, whereas it formerly referred instead to "Kuujjuarapik (Poste-de-la-Baleine)."

R. Albert
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch