First Nations Tax Exempt Status and Trade Union Membership

We understand that UFCW Local 401 is engaged in an organizing campaign with respect to security guard services in the Fort McMurray area. In connection with that campaign, we also understand that some employers or representatives of employers have been attempting to scare potential union supporters by telling them that if a trade union is certified with respect to that employer, then First Nations employees who previously had tax exempt status for their employment income, would no longer have that status. 

 
We have reviewed the relevant sections of the Income Tax Act and the Indian Act, as well as Canada Revenue Agency’s policies. On the basis of this review, we can advise you that whether an employer is certified by a trade union or not has absolutely no effect on the tax exempt status of employees of that employer. Any employer who states anything to the contrary is not accurately representing the law with respect to tax exempt status. 
 
I trust that this answers your question, but please let me know if you require any further information on this issue.
 
Yours truly,
CHIVERS CARPENTER
 

 

Tax exemption (PDF)