Tax Court of Canada issues decision on tax assessed on employment income earned by First Nations appellants

On May 24, 2011, in Dugan v. The Queen, 2011 TCC 269, the Tax Court of Canada issued a decision in respect of tax assessed on employment income held on-reserve by First Nations members. The First Nations appellants had sought an exemption under s.87 of the Indian Act. 

Justice Hershfield found that although three of the First Nations appellants earned their living by working a short distance off-reserve, their employment incomes were still significantly connected to their community and were therefore exempt from taxation. This was a significant win for the respective appellants and one of the few successful appeals from former OI employees before the Court. 

Gowlings was counsel to several of the appellants in this case with a team that included Scott Robertson and Paul Seaman.