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However, an employer can elect to participate in the CPP. Accordingly, tax-exempt salary or wages paid to an Indian employee are subject to EI premiums. Although an amount equal to the tax may be included in the price, the courts have confirmed that Indian individuals are not exempt from such an indirect tax. Federal excise duty applies to alcohol and tobacco products. Generally, your income from rental property will not be taxed if the physical location of the property is on a reserve.

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