News and Insights

CRA GST/HST Notice 238

Tax Development Nov 17, 2008

“First Nations Having a Self-Government Agreement Ending Indian Act Tax Relief – Determining Tax Relief for Indian Members Who Are Not Citizens”

The Canada Revenue Agency (“CRA”) has issued this notice regarding certain First Nations and their citizens who have signed a final or self-government agreement that ends tax relief under the Indian Act. The CRA provides an administrative policy which exempts the purchase of personal property of an Indian or Indian band situated on a reserve or delivered to a reserve and services that are performed entirely on a reserve. However, a vendor must determine who is entitled to tax relief by ensuring the registry or band number of the purchaser is not from a First Nation that is no longer provided relief under section 87 of the Indian Act, as indicated in the Appendix to this notice. The Status Indian quoting a registry or band number appearing in the Appendix will only be entitled to the exemption from GST if he/she certifies that he/she is not a citizen of the First Nation.

CRA Notice 238