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This Act is current to November 1, 2017
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Maa-nulth First Nations Final Agreement Act

[SBC 2007] CHAPTER 43

Schedule

Maa-nulth First Nations Final Agreement

CHAPTER 19 — TAXATION

19.1.0  DIRECT TAXATION

19.1.1 Each Maa‑nulth First Nation Government may make laws in respect of:

a. Direct taxation of Maa‑nulth First Nation Citizens of the applicable Maa‑nulth First Nation within the Maa‑nulth First Nation Lands of that Maa‑nulth First Nation in order to raise revenue for that Maa‑nulth First Nation Government's purposes; and

b. the implementation of any taxation agreement entered into between the applicable Maa‑nulth First Nation and Canada or British Columbia.

19.1.2 The law-making authority of a Maa‑nulth First Nation Government provided for in 19.1.1a. does not limit the taxation powers of Canada or British Columbia.

19.1.3 Notwithstanding any other provision of this Agreement, any Maa‑nulth First Nation Law made under this Chapter or any exercise of power by the Maa‑nulth First Nation Government, is subject to and will conform with Canada's International Legal Obligations respecting taxation, and 1.7.1 to 1.7.5 do not apply in respect of Canada's International Legal Obligations respecting taxation.

19.2.0  TAX AGREEMENTS

19.2.1 From time to time, at the request of a Maa‑nulth First Nation, Canada and British Columbia, together or separately, may negotiate and attempt to reach agreement with that Maa‑nulth First Nation respecting:

a. the extent that the Direct taxation law-making authority of its Maa‑nulth First Nation Government under 19.1.1a. may be extended to apply to Persons, other than the Maa‑nulth First Nation Citizens of the applicable Maa‑nulth First Nation, within the Maa‑nulth First Nation Lands of that Maa‑nulth First Nation; and

b. the coordination of its Maa‑nulth First Nation Government's taxation of any Person with federal or provincial tax systems.

19.2.2 Notwithstanding the provisions of Chapter 13 Governance, parties to an agreement contemplated by 19.2.1 may provide for an alternative approach to the appeal, enforcement or adjudication of a Maa‑nulth First Nation Law in respect of taxation.

19.3.0  MAA‑NULTH FIRST NATION LANDS

19.3.1 A Maa‑nulth First Nation is not subject to capital taxation, including real property taxes and taxes on capital or wealth, in respect of the estate or interest of the Maa‑nulth First Nation in its Maa‑nulth First Nation Lands on which there are no improvements or on which there is a designated improvement.

19.3.2 In 19.3.1, "designated improvement" means:

a. a residence of a Maa‑nulth First Nation Citizen;

b. an improvement, all or substantially all of which is used for a public purpose or a purpose ancillary or incidental to the public purpose, including:

i. a public governance or administration building, public meeting building, public hall, public school or other public educational institution, teacherage, public library, public health facility, public care facility, public seniors home, public museum, place of public worship, manse, fire hall, police facility, court, correction facility, public recreation facility, public park or an improvement used for Maa‑nulth First Nation cultural or spiritual purposes;

ii. works of public convenience constructed or operated for the benefit of Maa‑nulth First Nation Citizens, occupiers of Maa‑nulth First Nation Lands or persons visiting or in transit through Maa‑nulth First Nation Lands, including public utility works, public works used to treat or deliver water or as part of a public sewer system, public roads, public bridges, public drainage ditches, traffic signals, street lights, public sidewalks and public parking lots; or

iii. similar improvements;

c. an improvement that is used primarily for the management, protection or enhancement of a natural resource, including a forestry, fishery or wildlife resource, other than an improvement that is used primarily in harvesting or processing a natural resource for profit; and

d. forest resources and forest roads.

19.3.3 In 19.3.2b., "public purpose" does not include the provision of property or services primarily for the purpose of profit.

19.3.4 For the purposes of 19.3.1 and 19.3.2:

a. for greater certainty, Maa‑nulth First Nation Lands include the improvements on those lands; and

b. an improvement is deemed to be on the land that is necessarily ancillary to the use of the improvement.

19.3.5 For greater certainty, the exemption from taxation in 19.3.1 does not apply to a taxpayer other than the Maa‑nulth First Nation nor does it apply in respect of a disposition of Maa‑nulth First Nation Lands or interests in those lands by the Maa‑nulth First Nation.

19.3.6 For federal and provincial income tax purposes, proceeds of disposition received by the Maa‑nulth First Nation on expropriation of Maa‑nulth First Nation Lands in accordance with Chapter 2 Lands are not taxable.

19.4.0  TRANSFER OF MAA‑NULTH FIRST NATION CAPITAL

19.4.1 A transfer under this Agreement of Maa‑nulth First Nation Capital and a recognition of ownership of Maa‑nulth First Nation Capital under this Agreement is not taxable.

19.4.2 For purposes of 19.4.1, an amount paid by a Maa‑nulth First Nation to its Maa‑nulth‑aht is deemed to be a transfer of Maa‑nulth First Nation Capital under this Agreement if the payment:

a. reasonably can be considered to be a distribution of a Capital Transfer received by the Maa‑nulth First Nation; and

b. becomes payable to the Maa‑nulth‑aht within 90 days and is paid to the Maa‑nulth‑aht within 270 days from the date that the Maa‑nulth First Nation receives the Capital Transfer.

19.4.3 For federal and provincial income tax purposes, Maa‑nulth First Nation Capital of a Maa‑nulth First Nation is deemed to have been acquired by the Maa‑nulth First Nation at a cost equal to its fair market value on the later of:

a. the Effective Date; and

b. the date of transfer of ownership or the date of recognition of ownership, as the case may be.

19.5.0  INDIAN ACT TAX EXEMPTION AND TRANSITIONAL EXEMPTION

19.5.1 Section 87 of the Indian Act will have no application to a Maa‑nulth‑aht:

a. in respect of transaction taxes, as of the first day of the first month following the eighth anniversary of the Effective Date; and

b. in respect of all other taxes, as of the first day of the first calendar year starting after the twelfth anniversary of the Effective Date.

19.5.2 Subject to 19.1.1a. and 19.2.1a. and 19.5.3 to 19.5.6, as of the Effective Date, the following is exempt from taxation:

a. the interest of an Indian in Maa‑nulth First Nation Lands that were an Indian Reserve or Surrendered Lands on the day before the Effective Date;

b. the personal property of an Indian situated on Maa‑nulth First Nation Lands that were an Indian Reserve on the day before the Effective Date; and

c. an Indian in respect of the ownership, occupation, possession or use of any property mentioned in subparagraphs a. or b.

19.5.3 19.5.2 will cease to be effective:

a. in respect of transaction taxes, as of the first day of the first month that starts after the eighth anniversary of the Effective Date; and

b. in respect of all other taxes, as of the first day of the first calendar year that starts after the twelfth anniversary of the Effective Date.

19.5.4 19.5.2 is interpreted to exempt an Indian in respect of a property or interest, or in respect of the ownership, occupation, possession or use thereof, in the same manner and under the same conditions in which section 87 of the Indian Act would have applied, but for this Agreement, if the property were situated on, or the interest were in, an Indian Reserve.

19.5.5 19.5.2 only applies to an Indian during the period that section 87 of the Indian Act applies to the Indian.

19.5.6 If a Maa‑nulth First Nation Government imposes a tax within Maa‑nulth First Nation Lands and concludes a tax agreement for that purpose with Canada or British Columbia as contemplated in 19.2.1, 19.5.2 does not apply to the extent that the Maa‑nulth First Nation Government, Canada or British Columbia, as the case may be, imposes a tax that the particular taxation agreement specifies is applicable to Maa‑nulth First Nation Citizens and other Indians within the Maa‑nulth First Nation Lands of the applicable Maa‑nulth First Nation.

19.6.0  TAX TREATMENT AGREEMENT

19.6.1 The Parties will enter into a tax treatment agreement, which will come into effect on the Effective Date.

19.6.2 Canada and British Columbia will recommend to Parliament and the Legislature, respectively, that the tax treatment agreement be given effect and force of law under federal and provincial legislation.

Contents | Sections 1 to 31 | Schedule - Contents | Schedule - Preamble | Schedule - Chapter 1 | Schedule - Chapter 2 | Schedule - Chapter 3 | Schedule - Chapter 4 | Schedule - Chapter 5 | Schedule - Chapter 6 | Schedule - Chapter 7 | Schedule - Chapter 8 | Schedule - Chapter 9 | Schedule - Chapter 10 | Schedule - Chapter 11 | Schedule - Chapter 12 | Schedule - Chapter 13 | Schedule - Chapter 14 | Schedule - Chapter 15 | Schedule - Chapter 16 | Schedule - Chapter 17 | Schedule - Chapter 18 | Schedule - Chapter 19 | Schedule - Chapter 20 | Schedule - Chapter 21 | Schedule - Chapter 22 | Schedule - Chapter 23 | Schedule - Chapter 24 | Schedule - Chapter 25 | Schedule - Chapter 26 | Schedule - Chapter 27 | Schedule - Chapter 28 | Schedule - Chapter 29 | Appendix - Contents | Appendix - Introduction | Appendix A | Appendix B | Appendix C | Appendix D | Appendix E | Appendix F | Appendix G | Appendix H | Appendix I | Appendix J | Appendix K | Appendix L | Appendix M | Appendix N | Appendix O | Appendix P | Appendix Q | Appendix R | Appendix S | Appendix T | Appendix U | Appendix V | Appendix W | Appendix X | Appendix Y