Vol. 150, No. 6 — March 23, 2016

Registration

SOR/2016-40 March 11, 2016

FIRST NATIONS GOODS AND SERVICES TAX ACT

Order Amending Schedule 2 to the First Nations Goods and Services Tax Act, No. 2016-1 (Dakota Plains)

P.C. 2016-123 March 11, 2016

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. 2016-1 (Dakota Plains).

Order Amending Schedule 2 to the First Nations Goods and Services Tax Act, No. 2016-1 (Dakota Plains)

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

Dakota Plains

Council of Dakota Plains

Reserve of Dakota Plains

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.)

Issues

Dakota Plains, an Indian band situated southwest of the city of Portage la Prairie in Manitoba, asked to be listed in Schedule 2 to the First Nations Goods and Services Tax Act (the Act) in order to implement a provincial-type tax. The Province of Manitoba supports the request.

Objectives

The objective of the Order is to enable Dakota Plains, with the agreement of the Province of Manitoba, to exercise provincial-type tax powers within its reserve.

Description

Pursuant to section 29 of the Act, the Order amends Schedule 2 by adding:

Consultation

Dakota Plains 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 reserve where the provincial-type tax could apply. The Province of Manitoba supports the request that Schedule 2 be amended so Dakota Plains may exercise provincial-type tax powers within its reserve. The amendment is consistent with the request of Dakota Plains and the Province of Manitoba.

“One-for-One” Rule

The “One-for-One” Rule does not apply, as the Order does not impose any administrative burden on business.

Small business lens

The small business lens does not apply because the Order does not entail any administrative or compliance costs for small business.

Rationale

Amending Schedule 2 of the Act in this fashion makes it possible for the council of Dakota Plains, 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 reserve. The amendment also makes it possible for the Province of Manitoba and Dakota Plains to enter into an administration agreement in respect of the band’s law.

Listing Dakota Plains and the Province of Manitoba in Schedule 2 is an enabling measure. It does not require the band to enact a provincial-type tax law and does not require 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, a 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

The Order to amend Schedule 2 does not create new enforcement or administrative obligations for the Government of Canada. Dakota Plains 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
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-3812