Canada Proposes HST Relief For Status Indians

by Mike Godfrey, Tax-News.com, Washington

01 September 2010

The Canadian Department of Finance has released proposed draft regulations necessary to facilitate, as agreed in June 2010, tax relief for status Indians in Ontario equivalent to the provincial portion of the Harmonized Sales Tax (HST).

The draft regulations include proposed new rules and amendments to existing regulations that are required to enable HST registrants, which offer the provincial relief at the point-of-sale, to report and claim the amounts relieved with the Canada Revenue Agency. The document also codifies non-compliance penalties. The main provisions in the document will be provisionally brought into force from September 1, 2010.

Recognition by the federal government of persons registered under the Indian Act is referred to as Registered Indian Status. Status Indians are entitled to a wide range of programs and services offered by federal agencies, provincial governments and the private sector.

The government said comments on the proposed regulations will be accepted until September 30, 2010, at which point it will consider these and submit draft regulations for approval by the Governor in Council.

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