Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: This document discusses how the exemption from tax pursuant to section 87 of the Indian Act applies to the Canada Emergency Response Benefit (CERB).
Author: Gauthier, Michel
Section: Indian Act s. 87; 81(1)(a); Canada Emergency Response Benefit Act
November 30, 2020
Re: Indian Act Tax Exemption - Canada Emergency Response Benefit
This is in reply to your email dated September 22, 2020 requesting our comments on how the exemption from tax pursuant to section 87 of the Indian Act applies to the Canada Emergency Response Benefit (CERB).
This technical interpretation provides general comments about the provisions of the Income Tax Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R7, Advance Income Tax Rulings and Technical Interpretations.
The Canada Revenue Agency prepared a Question and Answers document in response to questions and requests for clarification received from various Indigenous communities and organizations about the Canada Emergency Response Benefit (CERB). Please see the Questions and Answers attached. Questions 2 to 5 relate to income tax and how the section 87 tax exemption applies to the CERB.
We trust that these questions and answers will be of assistance.
Roger Filion, CPA, CA
Non-Profit Organizations and Aboriginal Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
Canada Emergency Response Benefit (CERB) - Questions and Answers (May 20, 2020)
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