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ITG FAQ #2 Answer-When a tribal government crosses international boundaries, does this fact affect the treatment of a tribe in federal tax matters?

When a tribal government crosses international boundaries, how does this fact affect the treatment of a tribe in federal tax matters? What if a tribe has a different chief in each country?

If a tribe has land and or members in two countries, such as the United States and Mexico or Canada, the laws of each country apply in that country only. A tribe with land and members in both the United States and Canada will be subject to the laws of the United States in the tribal lands in the United States. It will also be subject to the laws of Canada for the tribal lands in Canada.

If a tribe has separate entities in two countries, the tribe in each country is only subject to the laws of the country where located. If a tribe has chiefs in the United States and Canada, the tribe in the Canadian part of the tribe will not be subject to the laws of the United states, and vice versa. However, citizens of a foreign country are subject to the laws of the United States, in regard to withholding on gaming distributions from the United States operations.

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Page Last Reviewed or Updated: 17-Oct-2014