ARCHIVED — Vol. 147, No. 4 — February 13, 2013

Registration

SOR/2013-13 January 31, 2013

FIRST NATIONS GOODS AND SERVICES TAX ACT

Order Amending Schedule 2 to the First Nations Goods and Services Tax Act, No. 2013-1 (Norway House Cree Nation)

P.C. 2013-22 January 31, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 29 (see footnote a) of the First Nations Goods and Services Tax Act (see footnote b), makes the annexed Order Amending Schedule 2 to the First Nations Goods and Services Tax Act, No. 2013-1 (Norway House Cree Nation).

ORDER AMENDING SCHEDULE 2 TO THE FIRST NATIONS GOODS AND
SERVICES TAX ACT, NO. 2013-1 (NORWAY HOUSE CREE NATION)

AMENDMENT

1. Schedule 2 to the First Nations Goods and Services Tax Act (see footnote 1) is amended by adding the following in alphabetical order:

Column 1


Band

Column 2


Council of the Band

Column 3


Reserves

Column 4

Specified Province

Norway House Cree Nation

Council of the Norway House Cree Nation

Reserves of the Norway House Cree Nation

Manitoba

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

Norway House Cree Nation, an Indian band situated north of Lake Winnipeg in Manitoba, asked to be listed in Schedule 2 to the First Nations Goods and Services Tax Act. The Province of Manitoba supports the request. Section 29 of the First Nations Goods and Services Tax Act provides that Schedule 2 may be amended by order for that purpose.

Objectives

This Order in Council will enable the Norway House Cree Nation, with the agreement of the Province of Manitoba, to exercise provincial-type tax powers within its reserves.

Description

The attached Order amends Schedule 2 to the First Nations Goods and Services Tax Act by adding

  • the name of the Province of Manitoba;
  • the name of the Norway House Cree Nation;
  • the name of the council of the Norway House Cree Nation; and
  • the description of Norway House Cree Nation’s reserves in Manitoba where the provincial-type tax law could apply.
Consultation

Norway House Cree Nation requested that Schedule 2 to the First Nations Goods and Services Tax Act be amended to include its name, the name of its council and the description of the reserves where the provincial-type tax could apply. The Province of Manitoba supports the request that Schedule 2 be amended so the Norway House Cree Nation may exercise provincial-type tax powers within its reserves. The amendment is consistent with the request of the Norway House Cree Nation and the Province of Manitoba.

“One-for-One” Rule

This Order addresses tax or tax administration and is carved out from the “One-for-One” Rule.

Small business lens

The small business lens does not apply to this proposal, as there are no costs on small business.

Rationale

Amending Schedule 2 to the First Nations Goods and Services Tax Act in this fashion makes it possible for the council of the Norway House Cree Nation, with the agreement of the Province of Manitoba, to enact a law that imposes a direct tax like a particular provincial tax (e.g. the Manitoba tobacco tax) within its reserves described in the Order. The amendment also makes it possible for the Province of Manitoba and the Norway House Cree Nation to enter into an administration agreement in respect of the band’s law.

Listing the Norway House Cree Nation and the Province of Manitoba in Schedule 2 is an enabling measure that does not obligate the band to enact a provincial-type tax law and does not obligate the band or the Province to enter into an agreement concerning the administration of the band’s law. If the band and the Province of Manitoba proceed, the band’s provincial-type tax would be implemented when the province and the band enter into a tax administration agreement under which the Province administers and enforces the band’s tax law and collects the tax for the band.

If an Indian band that is listed in Schedule 2 were to enact a law imposing a tax parallel to a provincial-type tax and enter into a tax agreement with the Province of Manitoba in respect of that law, then the band would realize, in accordance with the provisions of the agreement, a stream of revenue that could be used for the band’s purposes.

Implementation, enforcement and service standards

No new enforcement or administrative obligations will be created for the Government of Canada as a result of this Order in Council. The Norway House Cree Nation and the Province of Manitoba will be responsible for implementing any resulting arrangements, including arrangements for the administration, enforcement and collection of any provincial-type tax imposed by the band.

Contact

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