Difference between revisions of "Death and Taxes (Legal Information for Indigenous People)"

Death and Taxes (Legal Information for Indigenous People) (view source)

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 Indigenous peoples are subject to the same tax rules as any other resident in Canada unless their income is eligible for the tax exemption under section 87 of the Indian Act.
+If you have “Status,” then on reserve employment income is exempt from income tax under s81(1)(a) of the Income Tax Act and s 87 of the Indian Act. Some of the connecting factors used to determine whether income is situated on a reserve are:
+* the location or residence of the employer,
+* the nature, location and surrounding circumstances of the work performed, and
+* the location or residence of the employee.
+Any questions call Canada Revenue Agency 1-800-959-8281
+If your employment income is exempt from tax, any income that stems from this employment income, such as Employment Insurance, Canada Pension retirement benefits, etc. is also exempt from income tax.
+'''Note:''' the Guaranteed Income Supplement (GIS) does not include tax exempt income in the calculation of household income for eligibility purposes. GIS eligibility calculation is based on “taxable” income only. If your Old Age pensions get reduced, check to be sure your tax exempt income has not been used to calculate your GIS amount. Call a Legal Advocate for help.