Chiefs Hail Victory In Taxation Case

Chiefs Hail Victory In Taxation Case

Wednesday, July 27, 2011 at 09:26

A Supreme Court of Canada ruling on First Nation taxation is being hailed as a victory by the Ontario Chiefs.

Angus Toulouse says the case revolved around two First Nation Ontario members who challenged Canada Revenue over being taxed for income from investments made through an on-reserve banking institution.

The Ontario Chiefs say that the men used on-reserve banking institutions, but Canada Revenue claimed it as taxable income because the interest from the investments was gained from the “commercial mainstream.”

Toulouse says yesterday’s decision demonstrates that First Nations lands and property should not be subject to taxation by Canada.

Toulouse also says the ruling upholds section 87 of the Indian Act.