Members of the Qalipu Mi’kmaq First Nation Band in Newfoundland and Labrador, please take note that you are required to pay taxes on goods you purchase which are not delivered to a reserve. Tax exemption on goods is not a part of the agreement with the federal government and the Qalipu Mi’kmaq First Nation Band and this matter was explained to members and potential members during the consultation process prior to the ratification of the agreement in principle.
Most members are not getting the full story through the car dealership ads. Car dealerships currently advertise tax free purchases for band members, this is true. What they do not stipulate is that the vehicle must be delivered to the reserve by the dealership. Most all dealerships in Newfoundland charge a $500 fee for delivering the vehicle to the reserve. The reserve here in Newfoundland also has a minimal administration charge.
Previous information received from CRA indicated that a Status Indian had to be present on reserve to take possession of the property being sold in order to qualify for tax relief at the point of purchase.
We have received notice that this was an error.
Please note, there is no requirement that the purchaser be physically on the reserve to receive the property. A spouse, neighbor or friend can accept delivery on your behalf. To qualify for tax relief however, the recipient of the property must be a Status Indian. For more information on this update, please refer to Technical Information Bulletin B-039 on the CRA website
Chief Brendan Sheppard