Vol. 143, No. 21 — October 14, 2009

Registration

SOR/2009-281 October 1, 2009

FIRST NATIONS GOODS AND SERVICES TAX ACT

Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2009-1

P.C. 2009-1632 October 1, 2009

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 15 (see footnote a) of the First Nations Goods and Services Tax Act (see footnote b), hereby makes the annexed Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2009-1.

ORDER AMENDING SCHEDULE 1 TO THE FIRST NATIONS GOODS AND SERVICES TAX ACT, NO. 2009-1

AMENDMENT

1. Schedule 1 to the First Nations Goods and Services Tax Act (see footnote 1) is amended by adding the following in alphabetical order:

Column 1 First Nation	Column 2 Governing Body	Column 3 Lands
Duncan’s First Nation	Council of the Duncan’s First Nation	Reserves of the Duncan’s First Nation
Little Red River Cree Nation	Council of the Little Red River Cree Nation	Reserves of the Little Red River Cree Nation
Mosquito, Grizzly Bear’s Head, Lean Man First Nation	Council of the Mosquito, Grizzly Bear’s Head, Lean Man First Nation	Reserves of the Mosquito, Grizzly Bear’s Head, Lean Man First Nation
Peter Ballantyne Cree Nation	Council of the Peter Ballantyne Cree Nation	Reserves of the Peter Ballantyne Cree Nation
White Bear	Council of White Bear	Each reserve of White Bear that is not shared with another band
Westbank First Nation	Council of the Westbank First Nation	Reserve of the Westbank First Nation

COMING INTO FORCE

2. This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue and objectives

Six First Nations in western Canada have asked to be listed in Schedule 1 to the First Nations Goods and Services Tax Act. Schedule 1 may be amended by an Order in Council to list the First Nations. This Order in Council will enable each of the First Nations to exercise a tax power on reserve.

Description and rationale

Amending Schedule 1 to the First Nations Goods and Services Tax Act in this fashion makes it possible for the governing body of each of the listed First Nations to enact a law that imposes a tax like the federal Goods and Services Tax (GST) on its reserves. This type of tax is referred to generically as the First Nations Goods and Services Tax (FNGST). The amendment also makes it possible for Canada and each of the listed First Nations to enter into a tax administration agreement concerning the FNGST.

Listing the First Nations in Schedule 1 is an enabling measure that makes it possible for the First Nations to enact a law imposing a tax like the GST but does not obligate them to do so and does not obligate the Government of Canada or the First Nations to enter into agreements concerning the administration of the First Nation taxes. The FNGST comes into force when the tax administration agreement with Canada comes into effect and remains in force during the period when the tax administration agreement is in effect.

If a listed First Nation were to enact a law imposing the FNGST and enter into a tax agreement with the Government of Canada in respect of that law, then the First Nation would realize, in accordance with the provisions of the agreement, a stream of revenue that could be used for the First Nation’s purposes.

The attached order amends Schedule 1 to the First Nations Goods and Services Tax Act by adding the names of the following First Nations in western Canada:

— the Duncan’s First Nation, which is situated near Peace River, Alberta;

— the Little Red River Cree Nation, which is situated near Fort Vermilion, Alberta;

— the Mosquito, Grizzly Bear’s Head, Lean Man First Nation, which is situated near North Battleford, Saskatchewan;

— the Peter Ballantyne Cree Nation, which has more than 30 reserves located at various places in east central Saskatchewan;

— the Westbank First Nation, which is situated by Kelowna, British Columbia; and

— the White Bear First Nation, which is situated near Carlyle, Saskatchewan.

The Order also adds, opposite the name of each First Nation, the name of the governing body of the First Nation and the description of the First Nation’s reserves where its GST-type tax may apply.

Consultation

The amendment is consistent with the requests of the six First Nations. Each of the First Nations has requested that Schedule 1 be amended to include the required information about the First Nation.

Implementation, enforcement and service standards

The FNGST is fully harmonized with the GST. Under the terms of the tax administration agreement, the Canada Revenue Agency will act as the agent of the First Nation governments and will administer and enforce each First Nation’s FNGST law and collect the FNGST for each of the First Nations.

Contact

Ken Medd
Aboriginal Tax Policy Section
140 O’Connor Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-996-2192

Footnote a
S.C. 2005, c. 19, s. 9

Footnote b
S.C. 2003, c. 15, s. 67

Footnote 1
S.C. 2003, c. 15, s. 67

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