Mr. Speaker, following the decision rendered by the Supreme Court, the department reviewed the decision and issued a preliminary position near the end of 1992. A period of transition was put in place to allow Revenue Canada time to assess the scope of any negative impacts of the case and to allow affected individuals and organizations time to reorganize their affairs.
To clarify the application of the Indian tax exemption, revenue officials received input throughout 1993 from Indian organizations and individuals regarding the types of situations that could be affected by the Williams decision. Between June and October 1993, meetings were held across Canada with interested parties. Inaddition to the input obtained at the meetings, the department has received close to 250 letters and submissions from interested parties.
The department, based on all the input obtained and a sound analysis of the case, developed proposed guidelines for the interpretation of the Williams decision. The guidelines are a fair and liberal interpretation of the tax exemption provided by the Indian Act.
The draft guidelines were sent to some 200 Indian organizations and individuals on December 15, 1993. The department will accept comments on the draft guidelines until the end of March 1994. As the guidelines were not issued until near the end of 1993, the government is extending the transition period for existing employment arrangements to December 31, 1994. This will allow those who may be adversely affected to study the guidelines and rearrange their affairs if they so wish.