Tax Exemption Info


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, the vehicle must be delivered to the reserve by the dealership and there is with most if not all dealerships in Newfoundland a $500 fee for delivering the vehicle to the reserve and the reserve here in Newfoundland has a minimal administration charge.  The person purchasing the vehicle must also go to the reserve in order to legally finalize the transaction.   Members must realize that paying taxes on goods not delivered to a reserve is not a violation of their aboriginal rights. 

The original intent in the formation of the band was recognition of aboriginal people as well as certain education and non-insured health benefits for Mi’kmaq people who were denied access for recognition under the Indian Act when Newfoundland joined Canada in 1949.

In Ontario, as an example, purchases of merchandise by off reserve Status Indians has an exemption of provincial sales tax only unless the purchase is delivered to the reserve by the business or an agent representing the business.

Chief Brendan Sheppard


Western Star News Article