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.
W.P. Guglich
(613) 957-2102
19(1)
September 13, 1990
19(1)
In a letter dated July 24, 1990, Ms. Anita Boscariol of Indian and Northern Affairs Canada requested that we provide you information as to whether your band council could be considered a Canadian municipality for purposes of issuing income tax receipts for charitable gifts.
Technically, Indian band councils do not qualify as Canadian municipalities. Nevertheless, in Interpretation Bulletin IT-62 the Department expressed the view that where pursuant to section 83 of the Indian Act the Governor-in-Council declares that a band has reached an advanced stage of development such band councils would be regarded as Canadian municipalities for purposes of subparagraph 110(1)(a)(iv) (now paragraph 118.1(1)(d)) of the Income Tax Act. However, section 83 of the Indian Act has been amended so that such a declaration by the Governor-in-Council is no longer necessary for an Indian band council to enact a by-law pursuant to section 83 of the Indian Act.
As the administrative position set out in IT-62 is to be maintained for the time being the Department will now regard those band councils, that have actually exercised the powers authorized under both section 81 and section 83 of the Indian Act, as Canadian municipalities for purposes of paragraph 118.1(1)(d) of the Income Tax Act. As a minimum requirement the Indian band council must enact under section 81 of the Indian Act, at least one by-law which comes into force and also, with the approval of the Minister of Indian and Northern Affairs, enact at least one by-law under section 83 of the Indian Act.
We trust this will be of assistance to you.
Yours truly,
E.M. Wheeler for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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