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First Nations Fiscal Management Act (S.C. 2005, c. 9)

Act current to 2024-02-06 and last amended on 2024-01-15. Previous Versions

PART 1First Nations Fiscal Powers (continued)

Marginal note:Information accompanying property taxation law

  •  (1) A property taxation law — including an amendment of a property taxation law — shall, when submitted to the First Nations Tax Commission for approval, be accompanied by

    • (a) a description of the lands and interests or rights subject to the law;

    • (b) a description of the assessment practices to be applied to each class of land and interest or right;

    • (c) information regarding services to be provided from local revenues, existing service agreements and any service agreement negotiations under way at the time the law was made;

    • (d) a description of the notices that were given and any consultation undertaken by the council before making the law; and

    • (e) evidence that the law was duly made by the council.

  • Marginal note:Exemption

    (2) The First Nations Tax Commission may exempt a First Nation from the requirements of subsection (1) in respect of an amendment of a property taxation law if the Commission considers that the amendment is not significant.

  • Marginal note:Accompanying information

    (3) A law made under paragraph 5(1)(a.1) or (c), when submitted to the First Nations Tax Commission for approval, shall be accompanied by

    • (a) a description of the notices that were given and any consultation undertaken by the council before making the law; and

    • (b) evidence that the law was duly made by the council.

  • Marginal note:Evidence law duly made

    (4) A law made under any of paragraphs 5(1)(b) and (d) to (g) that is submitted to the First Nations Tax Commission for approval shall be accompanied by evidence that it was duly made by the council.

  • Marginal note:Additional information on request

    (5) At the request of the First Nations Tax Commission, a First Nation shall provide any documents that the Commission requires in order to

    • (a) review a local revenue law;

    • (b) determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 35(1); or

    • (c) perform any of its other functions under this Act.

  • 2005, c. 9, s. 8
  • 2015, c. 36, s. 180
  • 2018, c. 27, ss. 388, 414(E)

Marginal note:Financial administration laws

  •  (1) The council of a First Nation may make laws

    • (a) respecting the financial administration of the First Nation; and

    • (b) delegating to any person or body its powers to make laws under paragraph (a).

  • Marginal note:Approval required

    (2) A law made under subsection (1), including any amendment of such a law, does not have any force or effect until it is approved by the First Nations Financial Management Board.

  • Marginal note:Conditions for approval

    (2.1) The First Nations Financial Management Board shall not approve a law made under subsection (1) unless it was made in accordance with this Act, the regulations and, in all material respects, any standards established under paragraph 55(1)(a).

  • Marginal note:Coming into force

    (3) A law made under subsection (1) comes into force on the later of

    • (a) the day of coming into force set out in the law, and

    • (b) the day after it is approved by the First Nations Financial Management Board.

    • (c) [Repealed, 2015, c. 36, s. 181]

  • Marginal note:Evidence law duly made

    (4) A law made under subsection (1) that is submitted to the First Nations Financial Management Board for approval shall be accompanied by evidence that it was duly made by the council.

  • Marginal note:Additional information on request

    (5) At the request of the First Nations Financial Management Board, a First Nation shall provide any documents that the Board requires in order to

    • (a) review a financial administration law submitted to the Board;

    • (b) determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 55(1); or

    • (c) perform any of its other functions under this Act.

  • Marginal note:Judicial notice

    (6) In any proceedings, judicial notice may be taken of a law that is made under subsection (1) and approved by the First Nations Financial Management Board under subsection (2).

Marginal note:Repeal of financial administration law

 A borrowing member shall not repeal a financial administration law made under subsection 9(1) that has been approved by the First Nations Financial Management Board unless that law is replaced by another financial administration law that has been approved by the Board.

  • 2015, c. 36, s. 182

Marginal note:Law under paragraph 5(1)(a)

  •  (1) A council of a First Nation that makes a property taxation law that requires a rate of tax to be set annually shall also make a law under paragraph 5(1)(a) setting the rate of tax to be applied to the assessed value of each class of lands and interests or rights at least once each year on or before the date prescribed by regulation or, if none is so prescribed, on or before the date fixed by standards established under subsection 35(1).

  • Marginal note:Law under paragraph 5(1)(b)

    (2) A council of a First Nation that makes a property taxation law or that makes a law under paragraph 5(1)(a.1) shall also make a law under paragraph 5(1)(b) establishing a budget for the expenditure of local revenues at least once each year on or before the date prescribed by regulation or, if none is so prescribed, on or before the date fixed by standards established under subsection 35(1).

  • 2005, c. 9, s. 10
  • 2015, c. 36, s. 182
  • 2018, c. 27, ss. 389, 414(E)

Marginal note:No repeal by borrowing members

  •  (1) A borrowing member with an unpaid loan secured by local revenues shall not repeal a property taxation law or a law made under paragraph 5(1)(a.1) unless

    • (a) the revenues raised under that law, if any, are not being used as security for any loan obtained from the First Nations Finance Authority and the repeal of that law would not adversely affect the member’s obligations to the First Nations Finance Authority; or

    • (b) the law is concurrently replaced by a new law of the same nature that would not result in a reduction of the borrowing member’s borrowing capacity.

  • Marginal note:Priority to Authority

    (2) A law made under paragraph 5(1)(b) by a borrowing member with an unpaid loan secured by local revenues shall not authorize the expenditure of local revenues unless the borrowing member’s budget provides for the payment of all amounts payable to the First Nations Finance Authority during the budget period.

  • Marginal note:Financial commitment

    (3) A borrowing member with an unpaid loan secured by local revenues shall, in every year, reserve the local revenues that are required to ensure that all amounts authorized to be paid to the First Nations Finance Authority in the year with respect to that loan are actually paid in that year.

Marginal note:Legal capacity of first nations

 For greater certainty, for the purposes of Part 4, a borrowing member has the capacity to contract and to sue and be sued.

Marginal note:Local revenue account

  •  (1) Local revenues of a First Nation shall be placed in a local revenue account with a financial institution, separate from other moneys of the First Nation.

  • Marginal note:Restriction on expenditures

    (2) Local revenues may be expended only under the authority of a law made under paragraph 5(1)(b).

  • Marginal note:Balanced budget

    (3) Expenditures provided for in a law made under paragraph 5(1)(b) shall not exceed the local revenues estimated for the year in which those expenditures are to be made, less any deficit accumulated from prior years.

  • 2005, c. 9, s. 13
  • 2015, c. 36, s. 184
  • 2018, c. 27, s. 414(E)

Marginal note:Expenditure not authorized by law

 Despite subsection 13(2), a First Nation is authorized to make an expenditure of local revenues other than under the authority of a law made under paragraph 5(1)(b) in one of the following circumstances:

  • (a) in the case where no law has already been made under that paragraph establishing a budget for the year in which that expenditure is made, the First Nation, after making that expenditure, makes a law under that paragraph that authorizes the making of that expenditure; or

  • (b) in the case where a law has already been made under that paragraph establishing a budget for the year in which that expenditure is made, the First Nation is satisfied that the making of that expenditure constitutes an urgent measure and the First Nation, as soon as feasible after making the expenditure, amends that law to authorize the making of that expenditure.

  • 2015, c. 36, s. 185
  • 2018, c. 27, s. 414(E)

Marginal note:Local revenues

  •  (1) Local revenues of a First Nation shall be reported on and accounted for separately from other moneys of the First Nation in compliance with the standards established under paragraph 55(1)(d).

  • Marginal note:Audited reports

    (1.1) For the purposes of subsection (1), the First Nation shall prepare a financial report on its local revenues that shall be audited at least once each year. However, if it is authorised by a standard established under paragraph 55(1)(d), the First Nation may instead report on its local revenues in its audited annual financial statements as a distinct segment of the activities that appear in the statements.

  • Marginal note:Access to report

    (2) The audited financial report or the audited annual financial statements, as the case may be, shall be made available to

    • (a) the members of the First Nation;

    • (b) any other persons who have an interest or right in the First Nation’s reserve lands;

    • (c) the First Nations Tax Commission, the First Nations Financial Management Board and the First Nations Finance Authority; and

    • (d) the Minister.

  • 2005, c. 9, s. 14
  • 2015, c. 36, s. 186
  • 2018, c. 27, ss. 390, 414(E)

Marginal note:Non-application of certain provisions

 Paragraphs 83(1)(a) and (b) to (g) and section 84 of the Indian Act do not apply to a First Nation. In addition, any regulations made under paragraph 73(1)(m) of that Act do not apply to a First Nation in respect of the borrowing of money under a law made under paragraph 5(1)(d).

  • 2005, c. 9, s. 15
  • 2015, c. 36, s. 187
  • 2018, c. 27, s. 414(E)

PART 2First Nations Tax Commission

Interpretation

Marginal note:Definitions

 The following definitions apply in this Part.

Commission

Commission means the First Nations Tax Commission. (Commission)

taxpayer

taxpayer means a person paying taxes or fees under a law made under paragraph 5(1)(a) or (a.1). (contribuable)

Establishment and Organization of Commission

Marginal note:Commission

  •  (1) There is hereby established a commission, to be known as the First Nations Tax Commission, consisting of 10 commissioners, including a Chief Commissioner and Deputy Chief Commissioner.

  • Marginal note:Capacity, rights, powers and privileges

    (2) The Commission has the capacity, rights, powers and privileges of a natural person, including the capacity to

    • (a) enter into contracts;

    • (b) acquire, hold and dispose of property or an interest or right in property, or lease property;

    • (c) raise, invest or borrow money; and

    • (d) sue and be sued.

  • 2005, c. 9, s. 17
  • 2018, c. 27, s. 391

Marginal note:When agent of Her Majesty

  •  (1) The Commission is an agent of Her Majesty only for the approval of local revenue laws.

  • Marginal note:Savings

    (2) For the purpose of subsection (1), the issuance of a certificate referred to in paragraph 32(2)(b) is deemed not to be an approval of a local revenue law.

Marginal note:Appointment of Chief Commissioner

  •  (1) On the recommendation of the Minister, the Governor in Council shall appoint a Chief Commissioner and Deputy Chief Commissioner.

  • Marginal note:Tenure

    (2) The Chief Commissioner and Deputy Chief Commissioner hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

Marginal note:Appointment of commissioners

  •  (1) On the recommendation of the Minister, the Governor in Council shall appoint four commissioners to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

  • Marginal note:Appointment of commissioners

    (2) On the recommendation of the Minister, the Governor in Council shall appoint three additional commissioners — one of whom shall be a taxpayer using reserve lands for commercial, one for residential and one for utility purposes — to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

  • Marginal note:Appointment of additional commissioner

    (3) A body prescribed by regulation shall appoint an additional commissioner to hold office during pleasure for a term not exceeding five years.

  • Marginal note:Staggered terms

    (4) In determining the term of appointment of commissioners, the Governor in Council shall endeavour to ensure that the terms of no more than three commissioners expire in any one calendar year.

  • Marginal note:Qualifications

    (5) The Commission shall be composed of individuals from across Canada, including members of First Nations, who are committed to the development of First Nations local revenue systems and who have the experience or capacity to enable the Commission to fulfil its mandate.

 

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