Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/22/2014

Canada - Tax-exempt interest income of Indians 

May 22:  Persons who qualify as an Indian under Canada's Indian Act may want to consider recent court decisions about when and how investment income may be taxed.

In 2011, in response to two decisions—the Bastien and Dube cases—issued by the Supreme Court of Canada (2011 SCC 38 and 2011 SCC 39, respectively), the Canada Revenue Agency (CRA) said it would allow certain interest income to be tax-exempt under the rules in section 87 of the Indian Act.


The CRA noted that interest income may be exempt from income taxes when the particular facts closely match those decisions.


Read a May 2014 report prepared by the KPMG member firm in Canada: Status Indians and Interest Income - When Are You Taxable?




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