Consultation on Exempting Indigenous Settlement and Community Trusts from Alternative Minimum Tax

Current Status: Closed

The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer tax credits, deductions, and exemptions than under the ordinary personal income tax rules. Taxpayers pay either regular tax or AMT, whichever is highest.

The government recognizes the rights of Indigenous communities to self-determination. In Budget 2023, the government proposed changes to modernize the AMT, and held consultations in October 2023 on a proposed exemption from the AMT to ensure that Indigenous settlement and community trusts are not unintentionally affected by the AMT.

In this spirit, Budget 2024 announced a consultation on exempting from the AMT certain trusts that benefit Indigenous groups. Consultations on this exemption from the AMT, which would enable Indigenous communities to reinvest in the priorities that matter most to them, were held from April 16, 2024, to June 28, 2024.

Thank you to everyone who participated.

Key questions for consideration

This consultation sought feedback on draft legislative amendments for an exemption from the AMT for trusts created as part of an act, treaty, or settlement agreement between Canada and an Indigenous community, as well as trusts established for the benefit of Indigenous communities to help support their economic development.

What's next?

The Department of Finance will review feedback from this consultation process to help inform a decision about proceeding with, or modifying, draft legislation for a proposed exemption from the AMT for Indigenous settlement and community trusts.

While consultations have now concluded, stakeholders, particularly Indigenous governments and Indigenous organizations, are welcome to share their ideas and comments with the Department of Finance at any time.

Related links

• Budget 2024 Backgrounder: A Fair Future for Indigenous Peoples
• Budget 2024 Tax Measures: Supplementary Information
• Notice of Ways and Means Motion to introduce an Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024
• Budget 2023 Tax Measures: Supplementary Information