Rice – Quebec Court of Appeal finds that status Indians were required to collect sales tax on sales to non-Indians

Status (Mohawk) Indians selling gasoline on the Kahnawake Reserve to non-Indian purchasers were not exempted by s. 87 of the Indian Act from the requirement to collect and remit GST, QST and Quebec fuel tax, given that these taxes were designed to be borne by the ultimate purchasers and the retailers’ obligations were merely those of statutory collection agents. (Various constitutional arguments also were rejected by Hesler CJQ.)

Similar issues can arise respecting whether crown agents or non-residents can be required to collect or withhold tax on payments collected or paid to counterparties.

Neal Armstrong. Summaries of Rice v. ARQ, 2016 QCCA 666 under Constitution Act, 1982, s. 35(1), s. 25, Indian Act, s. 87, Constitution Act, 1867, s. 91(24).