First Nations Tax Exemptions

Many UPS Guards have been raising questions regarding the deductions coming off their pay cheques.  The way that UPS and UFNAC have paid their employees has made it very difficult to understand what deductions are occurring, and whether or not they are legal.

One particularly unclear point was whether or not UPS Guards of First Nations heritage should receive tax deductions from their pay, or if they qualified for the First Nations People’s Tax exemption.

If you recall Local 401 supplied many First Nation Guards with a legal opinion regarding the right to join a union and their obligations under Revenue Canada which said:

"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, 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."

You may be aware that UFNAC was taken over by UPS partially because of improprieties surrounding Revenue Canada Policies and income tax deductions in relations to its First Nations employees. When UPS took over they advised that everyone would be deducted income tax as per the Revenue Canada Policies. Therefore all UPS Guards should be deducted income tax despite their origin.

At income tax time First Nation Guards should discuss their status with the appropriate agencies to see if they qualify for reimbursement.

If you have any questions please don’t hesitate to call Archie Duckworth at 1-403-861-2121 or email You can also visit our website www.thesecurityguardunion.caor follow us on