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Locked: First nation's don't pay GST/PST?

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  • Sep 19th, 2008 12:16 am
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Sr. Member
Jun 7, 2006
800 posts

First nation's don't pay GST/PST?

Is this a false rumor or first nations are exempt from paying GST/PST?
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Newbie
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Jul 10, 2007
87 posts
Ottawa
I belive they dont pay the PST. Its one or the other they dont pay
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Jan 13, 2004
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http://www.google.ca/search?hl=en&q=fir ... +pst&meta=

From the third link

"The Indian Act provides the structure for the relationship between Indians and the federal government. Under Section 87 of the Indian Act, the personal property of an Indian or Indian band situated on a reserve and their interests in reserve lands are not subject to tax. The application of the GST/PST is consistent with the provisions of that Act.

To help you understand GST and PST as they relate First Nations business, we will consider on reserve versus off reserve, and regulations regarding buying and selling of goods or services. At the end of this section, you will see GST/PST regulations that are applicable both on and off reserve.

Section I: On Reserve

Purchases:

* Status Indians, Indian bands, and unincorporated band-empowered entities do not pay the provincial sales tax (PST) or federal goods and services tax (GST) on goods purchased on reserve.

* Generally, the GST/PST does not apply to services provided to Indians if the services are performed totally on a reserve (such as haircuts or small appliance repairs), or if the services are performed off a reserve and relate to real property interests located on a reserve.

* To buy goods or services without paying GST/PST, the vendor must be shown the proof that the individual is registered under the Indian Act (ie. your Certificate of Indian Status).

* Services acquired on or off a reserve by Indian bands or band-empowered entities for band management activities or for real property on a reserve are not subject to GST/PST.

* GST/PST on goods imported by Indians are subject to the taxes even when they are delivered to a reserve by the vendor's agent or Canada Post (unless some other provision exempts them from tax.)

* Incorporated band empowered entities buying goods for band management activities either on reserve or off reserve (with delivery to the reserve) are also entitled to this tax exemption on the purchase. "

<SNIP>

"Section II: Off Reserve

Purchases

* Where Status Indians make purchases off reserve and take possession of the goods at the time of sale, such as restaurant meals, or clothing, they are required to pay both PST and GST as applicable, unless the goods are delivered to a reserve by the vendor or the vendor's agent.

* The exemption under section 87 of the Indian Act does not apply when an Indian, an Indian band, or a band-empowered entity buyer takes possession of goods off a reserve and self-delivers the goods to the reserve. Requirement may be waived if a remote store qualifies, and if they deal mainly with customers who are Indians, Indian bands, and band-empowered entities.

* Incorporated band empowered entities buying goods either on reserve or off reserve (with delivery to the reserve) are also entitled to tax exemption if the purchases are for band management activities or for real property on a reserve.

* Exception to the above: Indian bands or band-empowered entities will pay the tax on off-reserve purchases of transportation, short-term accommodation, meals and entertainment. A General Rebate is available to recover this tax if application is made and these purchases were acquired for band management activities or for real property located on reserve."


Ces't bon?
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Deal Addict
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Feb 20, 2004
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Calgary
Yes they have a card that exempts them from paying those value added taxes.
[OP]
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Jun 7, 2006
800 posts
Interesting. I guess its a good thing.

Now, I need to find a first nation friend and shop with him. :)
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Nov 23, 2001
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Calgary
Yup, they pay no sales tax as long as they have 'the card'.

Which is also good for big business, which explains why there are so many native casinos out there.

We as immigrated Canadians, all of us pay to the natives in return for using their land. It is an amazing advantage that I don't think some natives fully appreciate.
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Nov 27, 2006
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ZenOps wrote:
Apr 26th, 2008 9:42 am
Yup, they pay no sales tax as long as they have 'the card'.

Which is also good for big business, which explains why there are so many native casinos out there.

We as immigrated Canadians, all of us pay to the natives in return for using their land. It is an amazing advantage that I don't think some natives fully appreciate.
Yeah, those ungrateful natives living in the lap of luxury and not appreciating it worth a damn.... :rolleyes:
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Member
Jun 25, 2007
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Only some provinces exempt the off-reserve PST for status Indians. Ontario is one; Manitoba is not. I only know this because my native friends who live near the ON-MB border pay PST if they buy things in Winnipeg, but no PST if they shop in Thunder Bay.
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Nikita wrote:
Apr 26th, 2008 12:23 pm
Yeah, those ungrateful natives living in the lap of luxury and not appreciating it worth a damn.... :rolleyes:
Agreed. I don't even get a Christmas card from them... :(
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Apr 28, 2005
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The irony is, in order to negate the taxes one would pay buying goods, you need money in the first place!!!

Not much of an advantage for pretty much the nations poorest group of people as it is.
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Jan 27, 2004
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yeah.... ITs a ****** deal none the less considering the systematic racism that they have faced throughout history.
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I heard, and correct me if I am wrong, that because the Natives in Canada do not need to pay tax, most Native areas (in the North West Territories?) do not have many government run facilities. In the area which they live in, they do not have access to libraries or community centers as most Canadians are entitled to. Their public education system and facilities are also more run down and poorly maintained because of the lack of funding.
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Takami wrote:
Apr 27th, 2008 12:04 pm
I heard, and correct me if I am wrong, that because the Natives in Canada do not need to pay tax, most Native areas (in the North West Territories?) do not have many government run facilities. In the area which they live in, they do not have access to libraries or community centers as most Canadians are entitled to. Their public education system and facilities are also more run down and poorly maintained because of the lack of funding.
I dunno...maybe it's just me but I'm pretty sure the fact that our Natives live in such poverty has absolutely nothing to do with the fact that they don't pay sales taxes...yep, pretty sure.
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Nov 23, 2001
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Thing is... They were living in poverty before we even got here.

Hunter gatherer lifestyle with no agriculture (not even as stable or productive as the Incans and Mayans who grew corn) 35 year average lifespan.

The natives in the southern US got screwed - none of them are around to complain anymore. That we haven't had a few centuries or millennia to bring the northern native americans up to speed with the rest of the world is not really our fault, especially if the natives are not willing to move to at least an agrarian society (so they can feed themselves without having to rely on hunting)

It would be nice to see some natives make the jump right from pre-agrarian to maybe a metal based society - So they can start some serious industrialization, and build themselves 20,000 square foot homes - but that is still probably another century off.

I figure they could have at least built something like a forbidden palace by now... With modern tools and all those pine trees and all that open land. Especially considering how cold it is in Canada.

http://en.wikipedia.org/wiki/Forbidden_palace 720,000 square meters built back in the early 1400's.
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Feb 19, 2004
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ZenOps wrote:
Apr 27th, 2008 1:14 pm
Thing is... They were living in poverty before we even got here.

Hunter gatherer lifestyle with no agriculture (not even as stable or productive as the Incans and Mayans who grew corn) 35 year average lifespan.

The natives in the southern US got screwed - none of them are around to complain anymore. That we haven't had a few centuries or millennia to bring the northern native americans up to speed with the rest of the world is not really our fault, especially if the natives are not willing to move to at least an agrarian society (so they can feed themselves without having to rely on hunting)

It would be nice to see some natives make the jump right from pre-agrarian to maybe a metal based society - So they can start some serious industrialization, and build themselves 20,000 square foot homes - but that is still probably another century off.

I figure they could have at least built something like a forbidden palace by now... With modern tools and all those pine trees and all that open land. Especially considering how cold it is in Canada.

http://en.wikipedia.org/wiki/Forbidden_palace 720,000 square meters built back in the early 1400's.
what the heck are you talking about?
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