Indian Income Tax Remission Order (SI/93-44)

Regulations are current to 2014-09-15

Indian Income Tax Remission Order

SI/93-44

FINANCIAL ADMINISTRATION ACT

Registration 1993-04-07

Order Respecting the Remission of Income Tax Paid or Payable on Income from Employers Residing on Reserves and Indian Settlements and on Certain Unemployment Insurance Benefits Received by Indians

P.C. 1993-523  1993-03-16

His Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of National Revenue, pursuant to subsection 23(2)Footnote * of the Financial Administration Act, is pleased hereby to make the annexed Order respecting the remission of income tax paid or payable on income from employers residing on reserves and Indian settlements and on certain unemployment insurance benefits received by Indians.

SHORT TITLE

 This Order may be cited as the Indian Income Tax Remission Order.

INTERPRETATION

 In this Order,

“Act”

“Act” means the Income Tax Act; (Loi)

“Indian”

“Indian” has the same meaning as in subsection 2(1) of the Indian Act; (Indien)

“Indian settlement”

“Indian settlement” has the same meaning as in section 2 of the Indians and Bands on certain Indian Settlements Remission Order; (établissement indien)

“reserve”

“reserve” means

REMISSION IN RESPECT OF CERTAIN EMPLOYMENT INCOME

  •  (1) Remission is hereby granted to a taxpayer who is an Indian of the amounts payable by the taxpayer under Parts I to I.2 of the Act for a taxation year that would not be payable by the taxpayer if, in the calculation of the taxpayer’s income for the year, there were not included an amount equal to the product obtained by multiplying the income for the year from each office or employment of the taxpayer by the proportion that

    • (a) the amounts that are required to be included in the computation of the income from that office or employment for the year and that are payable to the taxpayer by an employer residing on a reserve or Indian settlement

    are of

    • (b) the amounts that are required to be included in the computation of the income from that office or employment for the year.

  • (2) Remission is hereby granted to a person for whom the amounts payable under Parts I to I.2 of the Act for a taxation year would be reduced if, in the calculation of the income of the taxpayer referred to in subsection (1) for the year, there were not included the product obtained under that subsection in respect of each office or employment of the taxpayer, of an amount equal to the amount, if any, by which

    • (a) the total amount payable by the person under Parts I to I.2 of the Act for the year

    exceeds

    • (b) the total amount that would be payable by the person for the year if, in the calculation of the taxpayer’s income for the year, there were not included the product obtained under subsection (1) in respect of each office or employment of the taxpayer.

  • (3) Subsections (1) and (2) apply to the 1992, 1993 and 1994 taxation years except that, in its application to the 1994 taxation year, paragraph (1)(a) shall be read as follows:

    • “(a) the amounts that are required to be included in the computation of the income from that office or employment for the year and that are payable to the taxpayer by an employer residing on a reserve or Indian settlement, where the office or employment was held continuously since before 1994”.

  • SI/94-69, s. 1.

REMISSION IN RESPECT OF CERTAIN UNEMPLOYMENT INSURANCE BENEFITS

  •  (1) Subject to section 5, remission is hereby granted to a taxpayer who is an Indian of the amounts payable by the taxpayer under Parts I to I.2 of the Act for a taxation year that would not be payable by the taxpayer if, in the calculation of the taxpayer’s income for the year for the purpose of an assessment, there were not included an amount equal to the product obtained by multiplying the total of the benefits referred to in subparagraph 56(1)(a)(iv) of the Act and included in the calculation of the taxpayer’s income for the year for the purpose of an assessment, by the proportion that

    • (a) the income from employment during a relevant qualifying period that was taken into account in determining the amount of those benefits and that is exempt from taxation under subsection 87(1) of the Indian Act or in respect of which there is a remission of tax payable under the Act by a taxpayer who is an Indian

    is of

    • (b) the total income from employment during a relevant qualifying period that was taken into account in determining the amount of those benefits.

  • (2) Subject to section 5, remission is hereby granted to a person for whom the amounts payable under Parts I to I.2 of the Act for a taxation year would be reduced if, in respect of the taxpayer referred to in subsection (1), an amount equal to the amount of the product referred to in that subsection were not included in the calculation of the taxpayer’s income for the year for the purpose of an assessment, of an amount equal to the amount, if any, by which

    • (a) the total amount payable by the person under Parts I to I.2 of the Act for the year

    exceeds

    • (b) the total amount that would be payable by the person for the year if, in respect of the taxpayer, an amount equal to the amount of the product referred to in subsection (1) were not included in the calculation of the taxpayer’s income for the year for the purpose of an assessment.

  • (3) Subsections (1) and (2) apply to taxation years 1985 to 1991.

  • SI/94-69, s. 2(E).

CONDITION

 Remission under subsection 4(1) or (2) is granted on condition that an application in writing establishing the applicant’s right to that remission be submitted to the Minister of National Revenue.