Mr. H.L. Jones Director General Tax Policy 5-910456 Policy and Legislation W.P.Guglich Goods and Services Tax (613) 957-2102 Revenue Canada Customs and Excise Connaught Building MacKenzie Avenue Ottawa, Ontario K1A OL5
April 10, 1991
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. Dath
Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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