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

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.