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 income received by a First Nation from investments with a particular company will be exempt from Part I tax.
Position: No ruling.
Reasons:
The issue is whether any particular First Nation that invests in the company’s funds will be exempt from tax by virtue of paragraph 149(1)(c) of the Income Tax Act. For this determination, such a First Nation itself should request an advance income tax ruling.
XXXXXXXXXX 973059
J. D. Brooks
Attention: XXXXXXXXXX
XXXXXXXXXX
Attention: XXXXXXXXXX
May 27, 1998
Dear Sirs:
Re: XXXXXXXXXX
Request for Amendment to Advance Income Tax
Rulings 941471 and 952720
This is in reply to your letter of November 18, 1997 in which you requested an extension of our advance income tax rulings 941471 and 952720 issued for XXXXXXXXXX. The desired extension would apply to new Funds and would extend the deadline for investors investing in the Funds. We acknowledge our related telephone conversations (Brooks/XXXXXXXXXX).
We are not able to confirm the rulings which you requested. However, we provide the following comments.
It is our view that Indian bands that qualify for exemption from Part I tax under the Income Tax Act by virtue of paragraph 149(1)(c) thereof will not be subject to tax on investment income whether the income is earned directly or as a beneficiary of a trust.
If a particular Indian band intends to invest in one of the Funds of XXXXXXXXXX and wants assurance from Revenue Canada that its income derived from the Funds will be exempt from tax, the band itself should seek confirmation by way of a request for an advance income tax ruling.
These comments represent an expression of opinion and, as stated in Information Circular 70-6R3 dated December 30, 1996, are not binding on the Department.
We trust that our comments are of assistance.
Yours truly,
R. Albert, CA
Manager
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislatin Branch
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