• A step-in-the-right direction for tax parity in Canada

CALGARY: The Canadian Taxpayers Federation's Centre for Aboriginal Policy Change responded today to the federal government's review of the taxation policy regarding post-secondary education allowances and scholarships provided to status-Indians.

"The taxation of Aboriginal educational benefits as a taxable benefit would be in-step with current tax laws applied to non-Indians and begin the process of establishing tax parity in Canada," said Tanis Fiss the Centre's director.

The Supreme Court of Canada has ruled the tax exemption currently provided to status Indians living and working on reserve is not intended to remedy the economically disadvantaged position of Aboriginal people in Canada or bring economic benefits to them.

"Clearly, providing a tax exemption on Aboriginal post-secondary education allowances would bring an economic benefit to anyone who receives the benefit. Something which is in direct conflict with the Supreme Court of Canada," continued Fiss.

Currently any education payments received are to be tax exempt. Any new policy resulting from the federal government's review will be applied to education allowance payments made after December 31, 2005.

"The Canadian Taxpayers Federation would be pleased to present to federal government reviewers our position and recommendations for policy change," concluded Fiss.