5-910456
Dear Mr. Jones:
Re: The Meaning of "Reserve" Under the Indian Act
This is in reply to your letter of February 11, 1991 concerning the meaning of reserve for purposes of section 87 of the Indian Act and the Indian Remission Order.
We confirm that it is our position that for purposes of section 87 of the Indian Act and the Indian Remission Order the word reserve has the meaning assigned by subsection 2(1) of the Indian Act.
For purposes of income tax exemption it is not our practice to regard Indian settlements as being reserves (e.g., settlements
24(1)
In determining what is a reserve for purposes of income tax exemption we use as a guideline an Indian and Northern Affairs Canada publication entitled "Schedule of Indian Bands, Reserves and Settlements" dated December 1990. If in doubt, we would contact Indian and Northern affairs for clarification.
We trust our comments will be of assistance to you.
Yours truly,
B.W. DathDirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch