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JUNE 22, 2001

The Canadian Federal Court of Appeal on Thursday ruled that Aboriginals who live off-reserve are not exempt from paying federal income tax.

Reversing a lower court opinion, the court said the Indian Act and the historical tax-free status of Natives only applies to reserve residents.

The ruling effectively prevents First Nations from setting up off-reserve companies to employ band members and allow them to benefit from tax-free status. Previous federal guidelines had also exempted off-reserve residents from taxes if their jobs were closely tied to the reserve.

Rachel Shilling, from the Rama First Nation, brought the challenge and says she will appeal to the Supreme Court.

Get the Story:
Natives lose tax-free status off reserve (Southam News 6/22)