2020-0864791E5 Canada Emergency Response Benefit

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

XXXXXXXXXX                                                                                                                     2020-086479
                                                                                                                                             Michel Gauthier
November 30, 2020

Dear XXXXXXXXXX:

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).  

Our Comments:

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.

 Yours truly,

Roger Filion, CPA, CA
Manager
Non-Profit Organizations and Aboriginal Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

Appendix: 
Canada Emergency Response Benefit (CERB) - Questions and Answers (May 20, 2020) 

2020-0864791E5 Appendix.pdf

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© Her Majesty the Queen in Right of Canada, 2020

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistribuer de l'information, sous quelque forme ou par quelque moyen que ce soit, de façon électronique, mécanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté la Reine du Chef du Canada, 2020