Status Indians, Indian Bands and Band Councils

Guide 108

Introduction

This guide will assist Status Indians, Indian bands and band councils to claim an exemption from the Debt Retirement Charge (DRC) on electricity consumed on a reserve.

Reserve Defined

A reserve is defined under the federal statute, the Indian Act (Canada). This definition is used for DRC purposes, and also includes a settlement located on Crown land in which Status Indian residents are treated by the Department of Indian Affairs and Northern Development (Canada) in the same manner as Status Indians living on a reserve.

Exempt Purchasers

Status Indians can purchase electricity for consumption on a reserve exempt from DRC.

Indian bands and band councils also qualify for an exemption from DRC on electricity purchased and consumed on a reserve.

Purchases of Electricity Subject to DRC

Status Indians living off-reserve are required to pay DRC on their consumption of electricity. Indian bands and band councils purchasing electricity for consumption off-reserve must also pay DRC.

Electricity sold on a reserve to anyone other than Status Indians, Indian bands and band councils is subject to DRC. DRC exemptions for Status Indians, Indian bands and band councils are not available to corporations owned by Status Indians. These corporations must pay DRC on their consumption of electricity.

How to Claim the Exemption

Status Indians should present their federal "Certificate of Indian Status" identification card to their electricity supplier, or provide the following information from their card to their electricity supplier:

their name
the band name or registry number and
the federal identification card number

Indian bands and band councils must issue a properly completed Exemption Certificate to their supplier to claim the exemption. See Guide 104 Exemption Certificates for more information on providing an exemption certificate.

Responsibilities of Collectors for Exempt Sales

Collectors will obtain the following information from exempt users:

for electricity sold or supplied to Status Indians residing on a reserve record the users' name, band name or registry number and federal identification card number;
for electricity sold or supplied to an Indian band or band council consuming electricity on a reserve obtain a properly completed Exemption Certificate.

If collectors do not receive the necessary documentation they are required to charge and collect DRC.

Collector May Refund

Status Indians, Indian bands and band councils who paid DRC in error may request a refund of DRC directly from the collector.

Collectors may refund DRC if:

an error is made in the amount of DRC charged and collected
the person purchasing the electricity provides information or documentation to support the refund
the request for refund is made within four years of the date the DRC was paid in error.

Ministry May Refund

Status Indians, Indian bands and band councils who have paid DRC in error and who cannot obtain a refund from their distributor or retailer may apply to the Ministry of Revenue for a refund within four years of the date the DRC was paid in error.

You may download the "Request for Refund" form.

Additional Information

DRC is governed by Part V.I of the Electricity Act, 1998 and Regulations 493/01 (Rates and Exemptions), 494/01 (Administration) and 160/99 (Definitions and Exemptions). Consult these documents for detailed information.

The information contained in this publication is only a guideline. For more information, please contact the Ontario Ministry of Revenue at 1 866 ONT-TAXS (1 866 668-8297) or visit our website at ontario.ca/revenue

ISBN 0-7794-3129-4