First Nations Goods and Services Tax Act (S.C. 2003, c. 15, s. 67)

Short Title

Marginal note:Short title

1 This Act may be cited as the First Nations Goods and Services Tax Act.

Interpretation

Marginal note:Definitions

• 2 (1) The definitions in this subsection apply in this Act.

  administration agreement

  administration agreement, in Part 1, means an agreement referred to in subsection 5(2) and entered into with the authorized body of a first nation and, in Part 2, means an agreement referred to in section 22 and entered into with a council of the band. (accord d’application)

  authorized body

  authorized body, of a first nation, means the body of the first nation that has the authority to enter into an administration agreement. (organe autorisé)

  band

  band has the meaning assigned by subsection 2(1) of the Indian Act. (bande)

  governing body

  governing body means the body of a first nation that is identified opposite the name of the first nation listed in Schedule 1. (corps dirigeant)

  imported taxable supply

  imported taxable supply has the meaning assigned by section 217 of the Excise Tax Act. (fourniture taxable importée)

  input tax credit

  input tax credit has the same meaning as in Part IX of the Excise Tax Act. (crédit de taxe sur les intrants)

  lands

  lands, of a first nation, means the lands that are described opposite the name of the first nation listed in Schedule 1. (terres)

  Minister

  Minister means the Minister of Finance. (ministre)

  net tax

  net tax has the same meaning as in Part IX of the Excise Tax Act. (taxe nette)

  Part IX of the Excise Tax Act

  Part IX of the Excise Tax Act includes Schedules V to X to that Act. (partie IX de la Loi sur la taxe d’accise)

  reserve

  reserve has the meaning assigned by subsection 2(1) of the Indian Act. (réserve)

• Marginal note:Expressions defined in s. 123(1) of the Excise Tax Act

  (2) Unless a contrary intention appears, words and expressions used in Part 1 have the meanings assigned by subsection 123(1) of the Excise Tax Act.

• Marginal note:Mobile home or floating home

  (3) A mobile home or floating home is deemed to be tangible personal property for the purposes of applying the provisions of Part 1 and any first nation law, as defined in subsection 11(1) or 12(1), in respect of the bringing of tangible personal property onto the lands of a first nation.

• Marginal note:Application of deeming rules

  (4) If a provision of Part IX of the Excise Tax Act deems certain circumstances or facts to exist, those circumstances or facts are deemed to exist for the purposes of determining the matters in respect of which a first nation may enact a first nation law, as defined in subsection 11(1) or 12(1).

PART 1First Nations Goods and Services Tax Act

Application of other Acts of Parliament

Marginal note:Section 87 of Indian Act and similar provisions

• 3 (1) The obligation to pay tax or any other amount that is required to be paid under a first nation law, as defined in subsection 11(1) or 12(1), applies despite the application of the exemption under section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Section 89 of Indian Act

  (1.1) A first nation law, as defined in subsection 11(1) or 12(1), or an obligation to pay an amount that arises from the application of section 14, may, despite section 89 of the Indian Act, be administered and enforced by Her Majesty in right of Canada, by an agent of the first nation or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by Her Majesty in right of the province.

• Marginal note:Subsection 4(1) applies despite any other Act of Parliament

  (2) The governing body of a first nation listed in Schedule 1 may enact a law under subsection 4(1) that imposes a tax despite any other Act of Parliament that limits the authority of the first nation to enact a law that imposes a tax.

• Marginal note:Binding on Her Majesty

  (3) If a provision of Part IX of the Excise Tax Act is binding on Her Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 11(1) or 12(1), and any provision of the first nation law that corresponds to that provision of that Part, are so binding for the purposes of that law.

First Nation Goods and Services Tax Law

Marginal note:Authority to impose tax

• 4 (1) Subject to this section, the governing body of a first nation that is listed in Schedule 1 and that is a band or has the power to enact laws that has been recognized or granted under any other Act of Parliament or under an agreement that has been given effect by any other Act of Parliament may enact a law that imposes

  • (a) a tax in respect of a taxable supply made on the lands of the first nation;

  • (b) a tax in respect of the bringing of tangible personal property onto the lands of the first nation from a place in Canada; and

  • (c) a tax in respect of an imported taxable supply made on the lands of the first nation.

• Marginal note:Supply made on lands

  (2) For the purposes of subsection (1), a supply, other than an imported taxable supply, is made on the lands of a first nation only if at least one of the following conditions is met:

  • (a) if the lands of the first nation were a participating province, a provision of Part IX of the Excise Tax Act would deem the supply to be made in that participating province if

    • (i) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province, and

    • (ii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces; or

  • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Supply of specified motor vehicle on lands

  (3) Despite subsection (2), for the purposes of paragraph (1)(a), a supply of a specified motor vehicle by way of lease, licence or similar arrangement under an agreement under which continuous possession or use of the vehicle is provided for a period of more than three months is made on the lands of a first nation only if

  • (a) in the case of a recipient who is an individual, the recipient ordinarily resides on those lands at the time the supply is made; and

  • (b) in the case of a recipient who is not an individual, the ordinary location of the vehicle, determined for the purposes of Schedule IX to the Excise Tax Act at the time the supply is made, is on those lands.

• Marginal note:Imported taxable supply made on lands

  (4) For the purposes of paragraph (1)(c), an imported taxable supply is made on the lands of a first nation only if at least one of the following conditions is met:

  • (a) tax would be payable in respect of the imported taxable supply under subsection 218.1(1) of the Excise Tax Act if

    • (i) the lands of the first nation were the particular participating province referred to in that subsection,

    • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province,

    • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

    • (iv) the recipient of the supply were not a selected listed financial institution; or

  • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the imported taxable supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Bringing of property onto lands

  (5) Subject to subsection (6), a tax in respect of the bringing of property onto the lands of a first nation by a person shall be imposed under a law of the first nation enacted under subsection (1) only if the property was last supplied to the person by way of sale at a time when an administration agreement was in effect in respect of that law and tax would have been payable under Part IX of the Excise Tax Act in respect of the supply otherwise than at the rate of zero but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Exception

  (6) For the purposes of paragraph (1)(b), a tax in respect of the bringing of property onto the lands of a first nation by a person shall not be imposed if

  • (a) tax became payable by the person in respect of the property under any first nation law, as defined in subsection 11(1) or 12(1), or section 212 of the Excise Tax Act before the property is brought onto the lands of the first nation; or

  • (b) tax would not be payable under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of the property onto the lands of the first nation if

    • (i) the lands of the first nation were the particular participating province referred to in that subsection,

    • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the property is brought onto the lands of the first nation were each a separate participating province,

    • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

    • (iv) paragraphs 220.05(3)(a) and (b) of the Excise Tax Act, section 18 of Part I of Schedule X to that Act, the exemption under section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section did not apply in respect of the bringing of the property onto the lands of the first nation.

• Marginal note:Carriers

  (7) For the purposes of this Part, if a particular person brings property onto the lands of a first nation on behalf of another person, the other person, and not the particular person, is deemed to have brought the property onto those lands.

• Marginal note:Amount of tax — bringing of property onto lands

  (8) For the purposes of subsection (1), the amount of tax that may be imposed under the law of a first nation in respect of the bringing of property onto the lands of the first nation by a person is equal to the amount determined by the formula

  A × B

  where

  A

  is the rate of tax set out in subsection 165(1) of the Excise Tax Act, and

  B

  is

  • (a) if the person last acquired the property by way of a sale under which the property was delivered to the person within thirty days before the day on which it is brought onto the lands of the first nation, the value of the consideration on which tax under Part IX of the Excise Tax Act in respect of the sale would have been calculated but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section, and

  • (b) in any other case, the lesser of

    • (i) the fair market value of the property at the time the property is brought onto the lands of the first nation, and

    • (ii) the value of the consideration referred to in paragraph (a).

• Marginal note:Reporting and payment of tax

  (9) Tax that is imposed under a law of a first nation enacted under subsection (1) in respect of the bringing of property onto the lands of the first nation shall become payable by the person who brings it onto the lands at the time it is brought onto the lands and

  • (a) if the person is a registrant who acquired the property for consumption, use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return in respect of net tax is required to be filed under the law of the first nation for the reporting period in which the tax became payable,

    • (i) report the tax in that return, and

    • (ii) pay the tax to the Receiver General, or, if the law of the first nation is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, to the appropriate minister for that province; and

  • (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable,

    • (i) file with the Minister of National Revenue or, if the law of the first nation is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, with the appropriate minister for that province a return in respect of the tax, in the manner and in the form authorized by the Minister of National Revenue and containing information specified by that Minister, and

    • (ii) pay the tax to the Receiver General or to the appropriate minister for that province, as the case may be.

• Marginal note:Amount of tax — supply made on lands

  (10) For the purposes of paragraphs (1)(a) and (c), the amount of tax that may be imposed under the law of a first nation in respect of a supply is equal to the amount of tax that would be imposed under Part IX of the Excise Tax Act in respect of that supply if

  • (a) the Excise Tax Act applied and the law of the first nation, the exemption under section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section did not apply in respect of that supply;

  • (b) the amount were determined without reference to subparagraph (v) of the description of A or subparagraph (vi) of the description of J in the definition basic tax content in subsection 123(1) of the Excise Tax Act; and

  • (c) no amount of tax under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of Part IX of the Excise Tax Act were included in determining that amount.

• Marginal note:Administration and enforcement

  (11) A law enacted under subsection (1) by the governing body of a first nation shall be administered and enforced, and the tax imposed under that law shall be collected, in accordance with an administration agreement entered into under subsection 11(2) by the authorized body of the first nation.

Marginal note:Tax attributable to a first nation

• 5 (1) An administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a particular first nation shall provide for payments by the Government of Canada to the particular first nation in respect of that law based on an estimate for each calendar year of the total (in this section referred to as “tax attributable to the first nation”) of

  • (a) the amount by which

    • (i) the total of all amounts each of which is an amount of tax (other than tax payable by a listed financial institution) that, while that first nation law was in force, became payable in the year under a first nation law, as defined in subsection 11(1) or 12(1), or Part IX of the Excise Tax Act (other than subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1) and that is attributable to property or a service that is for consumption or use on the lands of the particular first nation

    exceeds

    • (ii) the total of all amounts each of which is included in the total determined under subparagraph (i) and

      • (A) is included in determining an input tax credit or in determining a deduction that may be claimed in determining the net tax of a person,

      • (B) can reasonably be regarded as an amount that a person is or was entitled to recover by way of a rebate or refund or otherwise under a first nation law, as defined in subsection 11(1) or 12(1), or under any Act of Parliament, or

      • (C) is an amount of tax in respect of a supply to a person who is, under any Act of Parliament or any other law, exempt from paying the tax, and

  • (b) the total of all amounts each of which is determined in respect of a listed financial institution by the formula

    A × B

    where

    A

    is the excess that would be determined under paragraph (a) in respect of the financial institution if subparagraph (a)(i) were read without reference to the words “that is for consumption or use on the lands of the particular first nation” and that subparagraph included amounts of tax payable by the financial institution but did not include amounts of tax payable by any other person, and

    B

    is the percentage that would be determined, for the purpose of the description of C in the formula in subsection 225.2(2) of the Excise Tax Act, as the financial institution’s percentage for the particular first nation for the last taxation year of the financial institution ending in that calendar year (or, if the financial institution does not have a taxation year ending in that calendar year, for the period that would be that last taxation year if the taxation year of the financial institution that is partly included in that calendar year ended at the end of that calendar year) if the financial institution were a selected listed financial institution and the lands of the particular first nation were a participating province.

• Marginal note:Administration agreement

  (2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a first nation with the authorized body of the first nation and, among other things, the agreement shall provide

  • (a) the method for estimating, in accordance with the formulae, rules, conditions and data sources specified in the agreement, the tax attributable to the first nation;

  • (b) for the sharing, if any, between the first nation and the Government of Canada of the tax attributable to the first nation;

  • (c) for the retention by the Government of Canada, as its property, of

    • (i) the portion, if any, of the total tax imposed by the first nation under the first nation law that is not tax attributable to the first nation, and

    • (ii) the Government of Canada’s share, if any, under paragraph (b) of the tax attributable to the first nation;

  • (d) for the payments, and for the eligibility for payments, by the Government of Canada to the first nation in respect of the tax attributable to the first nation out of the Consolidated Revenue Fund to which the first nation is entitled under the agreement, the time when and the manner in which such payments will be made, and the remittance by the first nation to the Government of Canada of any overpayments or advances by the Government of Canada or the right of the Government of Canada to set off any overpayments or advances against amounts payable by the Government of Canada to the first nation under the agreement;

  • (e) for the administration and enforcement of the first nation law by the Government of Canada or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by the government of the province and for the collection, by the Government of Canada or the government of the province, as the case may be, of amounts imposed under that law;

  • (f) for the provision by the Government of Canada or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by the government of the province to the first nation of information acquired in the administration and enforcement of the first nation law or, subject to section 295 of the Excise Tax Act, of Part IX of that Act, and for the provision by the first nation to the Government of Canada or the government of the province, as the case may be, of information acquired in the administration of the first nation law;

  • (g) for the accounting for amounts collected in accordance with the agreement;

  • (h) for the payment by the Government of Canada and its agents and subservient bodies of amounts imposed under the first nation law or any other first nation law, as defined in subsection 11(1) or 12(1), and for the payment by the first nation and its agents and subservient bodies of amounts imposed under that law, any other first nation law, as defined in subsection 11(1) or 12(1), or Part IX of the Excise Tax Act;

  • (i) for the accounting for the payments referred to in paragraph (h);

  • (j) for the compliance by the Government of Canada and its agents and subservient bodies with the first nation law and any other first nation law, as defined in subsection 11(1) or 12(1), and for the compliance by the first nation and its agents and subservient bodies with that law, any other first nation law, as defined in subsection 11(1) or 12(1), and Part IX of the Excise Tax Act; and

  • (k) for other matters that relate to, and that are considered advisable for the purposes of implementing or administering, the first nation law.

• Marginal note:Amending agreements

  (3) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the authorized body of a first nation amending or varying an administration agreement with the first nation or an agreement under this subsection.

• Marginal note:Payments to first nation

  (4) If the Minister, on behalf of the Government of Canada, has entered into an administration agreement with the authorized body of a first nation, the Minister may pay to the first nation out of the Consolidated Revenue Fund

  • (a) amounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; and

  • (b) in accordance with the agreement, advances in respect of the amounts referred to in paragraph (a).

• Marginal note:Payments to other persons

  (5) Subject to subsection (6), if an administration agreement has been entered into in respect of a first nation law, as defined in subsection 11(1) or 12(1), payments may be made to a person out of the Consolidated Revenue Fund on account of any amount that is payable to the person under that law in accordance with the agreement unless the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act.

• Marginal note:Recoverable advance out of Consolidated Revenue Fund

  (6) If no amount is held on behalf of a first nation from which payment under subsection (5) may be made in accordance with an administration agreement, or the amount of the payment exceeds the amount so held, payment under subsection (5) may be made as a recoverable advance out of the Consolidated Revenue Fund if the repayment of the amount or excess by the first nation is provided for in the agreement.

Marginal note:Statutory authority to make payments

6 Despite any other Act of Parliament, the payments made under an administration agreement under the authority of subsection 5(4), (5) or (6) may be made without any other or further appropriation or authority.

Marginal note:Coming into force — law under subsection 4(1)

• 7 (1) A law enacted under subsection 4(1) may come into force only on or after the later of the day on which a copy of the law is received by the Minister and the day on which an administration agreement in respect of that law comes into effect.

• Marginal note:Law deemed not in force

  (2) A law enacted under subsection 4(1) is deemed to not be in force at a particular time unless an administration agreement in respect of that law is in effect at that time.

• Marginal note:Not subject to Statutory Instruments Act

  (3) A law enacted under subsection 4(1) is not subject to the Statutory Instruments Act.

Marginal note:Proof of law

8 A copy of a first nation law, as defined in subsection 11(1) or 12(1), enacted by the governing body of a first nation is, if it is certified to be a true copy, evidence that the law was duly enacted by the governing body and, in the case of a law enacted under subsection 4(1), was received by the Minister, without proof of the signature or official character of the person certifying it to be a true copy if that person is

• (a) in the case of a first nation law, as defined in subsection 11(1), the Minister or a person authorized by the Minister; and

• (b) in the case of a first nation law, as defined in subsection 12(1), a person authorized by the governing body.

Marginal note:Law of a band

• 9 (1) A law enacted under subsection 4(1) by the governing body of a band is valid only if the power of the governing body to enact the law is exercised in conformity with paragraph 2(3)(b) of the Indian Act and no such law is invalid by reason of any defect in form.

• Marginal note:Expenditures

  (2) The power of the governing body of a band to expend moneys paid by the Government of Canada pursuant to an administration agreement in respect of a law enacted under subsection 4(1) by the governing body is validly exercised only if the power is exercised in conformity with paragraph 2(3)(b) of the Indian Act.

• Marginal note:Publication of law

  (3) The governing body of a band shall, on demand, provide a copy of any law enacted under subsection 4(1) by that governing body and shall publish a copy of every such law in a newspaper that has general circulation in the place where the law applies and in the First Nations Gazette, but no such law shall be invalid by reason of a failure to publish it.

• Marginal note:Indian moneys

  (4) Moneys raised pursuant to a tax imposed under a law of a first nation enacted under subsection 4(1) are not Indian moneys within the meaning of subsection 2(1) of the Indian Act.

Marginal note:First nation — provisions of other Acts of Parliament

• 10 (1) Subject to subsection (2), if any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament recognizes or grants a power of a first nation, other than a band, to enact a law and that Act or agreement contains provisions relating to such matters as the expenditure of moneys raised under a law of the first nation relating to taxation, the style, form or registration of such a law or the procedure for enacting, publishing and providing copies of such a law, the provisions of that Act or agreement apply, with such modifications as the circumstances require, for the purposes of a law of the first nation that is enacted under subsection 4(1).

• Marginal note:Exception

  (2) Subsection (1) does not apply to the extent that provisions relating to the matters referred to in that subsection are contained in a law of a first nation that is enacted under a power recognized or granted under any other Act of Parliament or under a power recognized or granted under an agreement that has been given effect by any other Act of Parliament.

Meaning of first nation law

• 11 (1) In this section, first nation law means a law enacted under subsection 4(1).

• Marginal note:Administration agreement

  (2) The authorized body of a first nation may enter into an administration agreement in respect of a first nation law enacted by the governing body of the first nation.

• Marginal note:Rules where agreement

  (3) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

  • (a) every provision of Part IX of the Excise Tax Act (other than a provision that creates a criminal offence) applies, with any modifications that the circumstances require, for the purposes of the first nation law as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province, but the first nation law shall not thereby be construed as imposing a tax except as provided in section 4;

  • (b) the first nation law applies as if tax imposed under Part IX of the Excise Tax Act were imposed under the first nation law and as if the provisions of that Part (other than a provision that creates a criminal offence) relating to that tax were included in the first nation law, but the first nation law shall not thereby be construed as imposing a tax except as provided in section 4;

  • (c) Part IX of the Excise Tax Act applies, other than for the purposes of paragraph (a), as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part shall not thereby be construed as imposing a tax except as provided in that Part;

  • (d) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province; and

  • (e) for greater certainty,

    • (i) a person who does anything to satisfy a requirement of the first nation law that would satisfy a corresponding requirement of Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have satisfied the requirement of the first nation law,

    • (ii) a person who does anything to exercise an authority, right or privilege under the first nation law that would be a valid exercise of a corresponding authority, right or privilege under Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have validly exercised the authority, right or privilege under the first nation law,

    • (iii) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under Part IX of the Excise Tax Act is deemed to have done that thing for the purposes of both that Part and the first nation law,

    • (iv) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

    • (v) a person who is a registrant for the purposes of Part IX of the Excise Tax Act is a registrant for the purposes of both that Part and the first nation law,

    • (vi) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act,

    • (vii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law, and

    • (viii) nothing in this Part shall be construed as conferring on a governing body the power to make an enactment in respect of criminal law.

First Nation Law Enacted Under Separate Power

Meaning of first nation law

• 12 (1) In this section, first nation law means a law enacted by the governing body of a first nation listed in Schedule 1 under a power recognized or granted under any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament, if that law and its application are consistent with subsections 4(1) to (10), paragraphs 11(3)(a) and (b) and subparagraphs 11(3)(e)(i) to (iii), (v) and (viii).

• Marginal note:Rules where agreement

  (2) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

  • (a) Part IX of the Excise Tax Act applies as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part shall not thereby be construed as imposing a tax except as provided in that Part;

  • (b) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province; and

  • (c) for greater certainty,

    • (i) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

    • (ii) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act, and

    • (iii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law.

• Marginal note:Cessation of agreement

  (3) If an administration agreement in respect of a first nation law ceases to have effect at any time, this Part applies after that time in respect of the first nation law as if the first nation law had been repealed at that time.

Administration Agreement and Part IX of Excise Tax Act

Marginal note:Tax not payable

13 If an administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), is in effect, no tax (other than tax imposed under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of Part IX of the Excise Tax Act) is payable or deemed to have been paid or collected under Part IX of the Excise Tax Act in respect of a supply to the extent that tax is payable or deemed to have been paid or collected, as the case may be, in respect of the supply under the first nation law.

Offences

Marginal note:Offences

14 When an administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), is in effect and a person commits an act or omission in respect of that law that would be an offence under a provision of Part IX of the Excise Tax Act or regulations made under that Part if the act or omission were committed in relation to that Part or those regulations,

• (a) subject to paragraph (b), the person is guilty of an offence punishable on summary conviction;

• (b) the Attorney General of Canada may elect to prosecute the person by indictment if an offence under that provision may be prosecuted by indictment; and

• (c) the person is liable on conviction to the punishment provided for in that provision.

General

Marginal note:Amendment of Schedule 1

15 The Governor in Council may, by order, amend Schedule 1 by adding, deleting or varying the name of any first nation or of the governing body of any first nation or the description of the lands of any first nation.

Marginal note:Information reports

• 16 (1) If an administration agreement entered into by the authorized body of a first nation is in effect in respect of a first nation law, as defined in subsection 11(1) or 12(1), the Minister of National Revenue or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, the appropriate minister for that province may, for the purposes of the administration agreement, require any person having a place of business, or maintaining assets of a business, on the lands of the first nation to make a report respecting supplies relating to that business made by the person or property or services acquired or imported for consumption, use or supply in connection with those lands and that business.

• Marginal note:Form and manner of filing

  (2) A report under subsection (1) shall be made in the manner and form authorized by the Minister of National Revenue and at the time and containing information specified by that Minister. The report shall be filed with the Minister of National Revenue or, if a first nation law is administered by the government of a province under an agreement referred to in that subsection, with the appropriate minister for that province.

PART 2First Nations Sales Tax — Specified Provinces

Interpretation

Marginal note:Definitions

17 The following definitions apply in this Part and in Schedule 2.

band law

band law means a law enacted by a council of the band under section 23. (texte législatif de bande)

council of the band

council of the band has the same meaning as in subsection 2(1) of the Indian Act. (conseil de bande)

direct

direct has the same meaning, for the purpose of distinguishing between a direct and an indirect tax, as in class 2 of section 92 of the Constitution Act, 1867. (directe)

parallel provincial law

parallel provincial law, in respect of a band law, means the enactment of the specified province listed in Schedule 2 opposite the name of the council of the band that enacted the band law, or those provisions of an enactment of that province, to which the band law is similar. (loi provinciale parallèle)

parallel Quebec law

parallel Quebec law[Repealed, 2006, c. 4, s. 92]

reserves in Quebec

reserves in Quebec[Repealed, 2006, c. 4, s. 92]

sales tax

sales tax means any tax of general application payable on a value, price or quantity basis by a person in respect of the sale, rental, supply, consumption or use of a property or service. (taxe de vente)

specified province

specified province means a province that is listed in Schedule 2. (province visée)

Application of Other Acts

Marginal note:Section 87 of the Indian Act and similar provisions

• 18 (1) The obligation to pay tax or any other amount that is required to be paid under a band law applies despite the application of the exemption under section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Section 89 of the Indian Act

  (2) A band law may be administered and enforced by an agent of the band despite section 89 of the Indian Act.

Marginal note:Not subject to Statutory Instruments Act

19 A band law is not subject to the Statutory Instruments Act.

Marginal note:Application of section 23

20 A council of the band may enact a band law despite any other Act of Parliament that limits the authority of the council of the band to enact a law that imposes a tax.

Marginal note:Application of other Acts

21 If a law of a specified province provides that one or more laws of the specified province apply as if the tax imposed under a band law were imposed under a particular law of the specified province, all Acts of Parliament, other than this Act, apply as if the tax imposed under the band law were imposed under that particular law of the specified province.

Administration Agreement

Marginal note:Authority to enter into agreement

22 A council of the band may, on behalf of the band, enter into an administration agreement with the government of the specified province listed opposite the name of that council in Schedule 2 in respect of a band law enacted by that council.

Delegation

Marginal note:Authority to impose a direct sales tax

• 23 (1) A council of the band that is listed in Schedule 2 may enact a law that imposes a direct sales tax, and any other amount that may be required to be paid in relation to the imposition of that direct sales tax, within its reserves that are situated in the specified province listed opposite the name of that council in that Schedule and that are listed in that Schedule opposite the name of the council.

• Marginal note:Parallel provincial law

  (2) A law may not be enacted under subsection (1) unless the law has only one parallel provincial law that is expressly identified in that law.

• Marginal note:Force of law

  (3) A law enacted under subsection (1) does not have the force of law unless

  • (a) an administration agreement in respect of the law is in effect;

  • (b) that administration agreement is between the council of the band and the government of the specified province listed opposite the name of that council in Schedule 2;

  • (c) the law is administered and enforced, and the direct sales tax imposed under that law is collected, in accordance with that administration agreement;

  • (d) the name of the band, the name of the council of the band, the name, or description, of the reserves of the band within which the law applies and the name of the specified province in which the reserves are situated are listed opposite one another in Schedule 2; and

  • (e) its parallel provincial law is in force.

• Marginal note:Conformity with Indian Act

  (4) A law enacted under subsection (1) is valid only if the power of the council of the band to enact the law is exercised in conformity with paragraph 2(3)(b) of the Indian Act and no such law is invalid by reason of any defect in form.

• Marginal note:Criminal law exclusion

  (5) Nothing in this Part shall be construed as conferring on a council of the band the power to make an enactment in respect of criminal law.

Marginal note:Coming into force — law under section 23

24 Subject to subsection 23(3), a band law comes into force on the date specified in the administration agreement entered into under section 22 in respect of that law.

Marginal note:Proof of law

25 A copy of a band law is, if it is certified to be a true copy by the Minister or a person authorized by the Minister, evidence that the law was duly enacted by the council of the band without proof of the signature or official character of the Minister or the person authorized by the Minister.

Marginal note:Publication of law

26 A council of the band shall on demand provide a copy of any band law enacted by that council and shall publish a copy of every such law in a newspaper that has general circulation in the place where the law applies and in the First Nations Gazette, but no such law shall be invalid by reason of a failure to publish it.

Marginal note:Expenditures

27 The power of a council of the band to expend moneys received by the council under an administration agreement is validly exercised only if the power is exercised in conformity with paragraph 2(3)(b) of the Indian Act.

Marginal note:Indian moneys

28 Moneys raised under a band law are not Indian moneys within the meaning of subsection 2(1) of the Indian Act.

General

Marginal note:Amendment of Schedule 2

29 The Governor in Council may, by order, amend Schedule 2 by adding, deleting or varying the name of a band, the name of a council of the band, the name, or description, of a band’s reserves or the name of a specified province.