Taxation for First Nations People in Canada
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Identify that an individual must be registered as an Indian† with Aboriginal Affairs and Northern Development Canada to be eligible for exemption from tax.
- Identify types of tax exemptions that an individual may be eligible for based on their registration as an Indian, such as:
- Income earned on a reserve
- Purchases made on a reserve
- Investment income situated on a reserve
- Dispositions of property situated on a reserve
- Identify factors that the Canada Revenue Agency may use to determine if income is connected to a reserve, such as:
- Residence of the individual earning income on a reserve
- Duties of employment are performed on a reserve
- Investment income is situated on a reserve
- Residence of employer on a reserve
- Business activities of self-employed individuals occurs on or from a reserve
- Explain how income for an Indian is treated for tax purposes.1
- For employment income
- For self-employed business income
- For interest and investment income
- For rental income
- For capital gains
- For Registered Retirement Savings Plan income
- For Old Age Security benefits
- Explain how purchases made by an Indian are treated for tax purposes.
- For purchases made on a reserve
- For purchases made off a reserve
- Explain how deductions are treated for tax purposes.
- Canada Pension Plan contributions
- Employment Insurance premiums
†The term “Indian” is used here to align with the legal definition of an Indian under the Indian Act.
REFERENCES
1 http://www.cra-arc.gc.ca/brgnls/ndns-eng.html
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify that an individual must be registered as an Indian† with Aboriginal Affairs and Northern Development Canada to be eligible for exemption from tax.
- Identify types of tax exemptions that an individual may be eligible for based on their registration as an Indian, such as:
- Income earned on a reserve
- Purchases made on a reserve
- Investment income situated on a reserve
- Dispositions of property situated on a reserve
- Identify factors that the Canada Revenue Agency may use to determine if income is connected to a reserve, such as:
- Residence of the individual earning income on a reserve
- Duties of employment are performed on a reserve
- Investment income is situated on a reserve
- Residence of employer on a reserve
- Business activities of self-employed individuals occurs on or from a reserve
- Explain how income for an Indian is treated for tax purposes.1
- For employment income
- For self-employed business income
- For interest and investment income
- For rental income
- For capital gains
- For Registered Retirement Savings Plan income
- For Old Age Security benefits
- Explain how purchases made by an Indian are treated for tax purposes.
- For purchases made on a reserve
- For purchases made off a reserve
- Explain how deductions are treated for tax purposes.
- Canada Pension Plan contributions
- Employment Insurance premiums
Additional Knowledge Expected of CFP Professionals
- Explain how income for an Indian is treated for tax purposes.2
- For royalty income
- For United States Social Security benefits
- For pension income from the United States
- For support payments
- For income received from a trust
† The term “Indian” is used here to align with the legal definition of an Indian under the Indian Act.
previous / Non-Taxable Income and Receipts