ARCHIVED — Vol. 146, No. 6 — March 14, 2012

Registration

SOR/2012-31 March 2, 2012

FIRST NATIONS GOODS AND SERVICES TAX ACT

Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2012-1 (Nekaneet)

P.C. 2012-224 March 1, 2012

His 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. 2012-1 (Nekaneet).

ORDER AMENDING SCHEDULE 1 TO THE FIRST NATIONS GOODS
AND SERVICES TAX ACT, NO. 2012-1 (NEKANEET)

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

Nekaneet

Council of Nekaneet

Each reserve of Nekaneet that is not shared with another band.

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

Nekaneet, which is a First Nation situated near Maple Creek, Saskatchewan, asked to be listed in Schedule 1 to the First Nations Goods and Services Tax Act in order to be able to implement the First Nations Goods and Services Tax (FNGST). Section 15 of the First Nations Goods and Services Tax Act provides that Schedule 1 may be amended by order for that purpose. This Order in Council will enable Nekaneet, with the agreement of Canada, to exercise a Goods and Services Tax-type tax power within its lands.

Description and rationale

The attached Order amends Schedule 1 to the First Nations Goods and Services Tax Act by adding:

  • the name of Nekaneet;
  • the name of the governing body of Nekaneet; and
  • the description of the lands where Nekaneet’s goods and services tax (GST) law could apply.

Amending Schedule 1 to the First Nations Goods and Services Tax Act in this fashion makes it possible for the governing body of Nekaneet, with the agreement of Canada, to enact a law that imposes a tax like the federal GST within the reserves of Nekaneet. This type of tax is referred to generically as the FNGST. The amendment also makes it possible for Canada and Nekaneet to enter into a tax administration agreement in respect of the FNGST, which is required for the FNGST to come into force.

Listing Nekaneet in Schedule 1 is an enabling measure that makes it possible for the First Nation to enact a law imposing a tax like the GST but does not obligate it to do so and does not obligate the Government of Canada or the First Nation to enter into an agreement concerning the administration of the First Nation’s law. 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 First Nation that is listed in Schedule 1 were to enact a law imposing the FNGST and enter into a tax administration 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.

Consultation

Nekaneet requested that Schedule 1 to the First Nations Goods and Services Tax Act be amended to include its name, the name of its governing body and the description of the lands where the FNGST law could apply. The amendment is consistent with the wishes of Nekaneet.

Contact

Roch Vézina
Aboriginal Tax Policy Section
Department of Finance Canada
140 O’Connor Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-995-3648

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