16 May 1996 Internal T.I. 9611536 - INDIANS - NISGA'A TREATY OF 1898

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:

Whether an Indian can rely on the Nisga'a Treaty of 1898 to be considered exempt from income tax.

Position:

No.

Reasons:

Treaties generally did not provide Indians with exemption from taxation.

		May 16, 1996

	T1 Assessing	HEADQUARTERS
J. D. Brooks
		957-2103
Attention:  Diane Quevillon
		961153	

Indians - Nisga'a Treaty

This is in reply to your memorandum of March 28, 1996 regarding a request from an Indian named XXXXXXXXXX for a refund of taxes paid over the last 32 years. XXXXXXXXXX request is based on his understanding that his income should have been exempt from taxation pursuant to a treaty he referred to as the Nisga'a Treaty of 1898.

Treaties generally did not provide Indians with exemption from taxation. However, even if a treaty did refer to taxation, it would require an Act of Parliament to over-ride the provisions of the Income Tax Act. The Supreme Court of Canada held in the case of C.W. George (1966 SCR 267) that treaties do not take precedence over federal legislation. Accordingly, XXXXXXXXXX is not entitled, pursuant to treaty rights, to a refund of taxes he has paid.

XXXXXXXXXX did not provide any information concerning the income on which he has paid taxes so we cannot comment on whether he may have earned income that would be exempt under paragraph 87(b) of the Indian Act.

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