Order Amending Schedule 1 to the First Nations Goods and Services Tax Act: SOR/2024-103
Canada Gazette, Part II, Volume 158, Number 12
Registration
SOR/2024-103 May 27, 2024
FIRST NATIONS GOODS AND SERVICES TAX ACT
P.C. 2024-579 May 24, 2024
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending Schedule 1 to the First Nations Goods and Services Tax Act under section 15footnote a of the First Nations Goods and Services Tax Act footnote b.
Order Amending Schedule 1 to the First Nations Goods and Services Tax Act
Amendments
| Column 1 First Nation |
Column 2 Governing Body |
Column 3 Lands |
|---|---|---|
| Sliammon | Council of Sliammon | Reserve of Sliammon |
| Column 1 First Nation |
Column 2 Governing Body |
Column 3 Lands |
|---|---|---|
| Metepenagiag Mi’kmaq Nation | Council of the Metepenagiag Mi’kmaq Nation | Reserves of the Metepenagiag Mi’kmaq Nation |
| Tla’amin Nation | Tla’amin Government | Tla’amin Lands, as defined in the Tla’amin Final Agreement Act, S.C. 2014, c. 11 |
Coming into Force
3 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
To reflect its new name and its new status as a self-governing Indigenous government, the Tla’amin Nation requested that the Schedule 1 to the First Nations Goods and Services Tax Act (the Act) be consequentially amended to modify the name, the governing body and the description of its lands, which are currently listed under its former name and reserves. The Tla’amin Nation has requested amendments to Schedule 1 to the Act in order to be able to implement a First Nations Goods and Services Tax (FNGST) within its treaty settlement lands (Tla’amin Lands). The FNGST is a tax similar to the federal Goods and Services Tax (GST); however, it is a tax that is imposed under the law of an Indigenous government rather than the federal government.
In addition, the Metepenagiag Mi’kmaq Nation has also requested to be listed on Schedule 1 to the Act to be able to impose the FNGST within its reserves.
Background
The Tla’amin Nation concluded a Modern Treaty with Canada and British Columbia in 2016. British Columbia in 2016. To reflect its new name and its new status as a self-governing Indigenous government, the Tla’amin Nation has requested that Schedule 1 to the Act be amended to modify the name, the governing body and the lands of the Tla’amin Nation, currently listed under its former name and reserves.
The Metepenagiag Mi’kmaq Nation, a First Nation located in New Brunswick, is also interested in negotiating an FNGST tax administration agreement with Canada in order to generate tax revenues to benefit their community. Therefore, they requested to be listed on Schedule 1 to the Act as it is a necessary step to conclude an FNGST tax administration agreement.
The FNGST is a tax that is applied by participating Indigenous governments on the consumption of goods and services within their reserves or settlement lands. Participating Indigenous governments apply the FNGST through their own tax law, as authorized by the Act and a tax administration agreement with the Government of Canada. The FNGST applies at the same rate as the GST to the same range of goods and services and is administered in exactly the same way as the GST.
Listing Indigenous governments in Schedule 1 of the Act is an enabling measure. Once an Indigenous government is listed in the Schedule, the Indigenous government may impose its own tax law and conclude a related tax administration agreement with the Government of Canada to implement the FNGST. The Governor in Council may, by order, amend Schedule 1 of the Act 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.
There are currently 72 Indigenous governments listed in Schedule 1 of the Act, including the former name of Tla’amin Nation, with which the Government of Canada has 34 FNGST tax administration agreements in effect.
Objective
The amendments in the Order Amending Schedule 1 to the First Nations Goods and Services Tax Act (the Order) are necessary to enable the Tla’amin Nation and the Metepenagiag Mi’kmaq Nation to be able to conclude tax administrative agreements with Canada and have an FNGST law in place if they choose to implement the FNGST.
Description
The Order amends Schedule 1 to the Act by modifying
- the name of the Tla’amin Nation from Sliammon to Tla’amin Nation;
- the name of its governing body from Council of Sliammon to Tla’amin Government; and
- the description of its treaty settlement lands where its FNGST law could apply from Reserve of Sliammon to Tla’amin Lands.
The Order also amends Schedule 1 to the Act by adding
- the name of the Metepenagiag Mi’kmaq Nation;
- the name of its governing body, the Council of the Metepenagiag Mi’kmaq Nation; and
- the description of its reserves where its FNGST law could apply.
Regulatory development
Consultation
The parties affected by the amendments are the Tla’amin Nation, the Metepenagiag Mi’kmaq Nation and the Government of Canada. The Order is consistent with the requests of the Tla’amin Nation and the Metepenagiag Mi’kmaq Nation and is not expected to affect other Indigenous groups. No other consultations were undertaken in respect of this Order. Finally, since the Tla’amin Nation and the Metepenagiag Mi’kmaq Nation are the only groups affected by this Order, the Order was exempt from the requirement set out in the Cabinet Directive on Regulation to prepublish in the Canada Gazette, Part I.
Modern treaty obligations and Indigenous engagement and consultation
The Tla’amin Nation and the Metepenagiag Mi’kmaq Nation requested that Schedule 1 to the Act be amended to modify or add their names, the names of their governing bodies and the descriptions of their lands where their FNGST laws could apply. There are no modern treaty obligations related to this Order. The amendments are not expected to impact potential or established Aboriginal or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982.
Regulatory analysis
Costs and benefits
There are no direct costs associated with this Order. Amending Schedule 1 to the Act makes it possible for the governing bodies of the Tla’amin Nation and the Metepenagiag Mi’kmaq Nation, with the agreement of Canada, to enact a law that imposes the FNGST within their lands described in the Order. The amendments also make it possible for the Government of Canada and the Tla’amin Nation or the Metepenagiag Mi’kmaq Nation to enter into tax administration agreements in respect of the FNGST.
The modification of the information in Schedule 1 to the Act is an enabling measure. It does not require their governing bodies to enact a law that imposes the FNGST and does not require the Tla’amin Nation, the Metepenagiag Mi’kmaq Nation or the Government of Canada to enter into tax administration agreements in respect of the FNGST.
If the Tla’amin Nation or the Metepenagiag Mi’kmaq Nation enacts a law for the FNGST and concludes a related tax administration agreement with Canada, Canada would administer and enforce the FNGST law and collect the tax for the Indigenous government. If an agreement is concluded with the Tla’amin Nation or the Metepenagiag Mi’kmaq Nation, there would be a marginal increase in resource demands for the Canada Revenue Agency and the Department of Finance to administer the FNGST and implement the tax agreement. In accordance with the provisions of the tax administration agreement, an Indigenous government that implements the FNGST would receive a stream of revenue that could be used for its own purposes.
Small business lens
The small business lens does not apply because the Order does not impose any administrative or compliance costs for small businesses.
One-for-one rule
The one-for-one rule does not apply, as there is no impact on business.
Regulatory cooperation and alignment
This Order is not related to a work plan or commitment under a formal regulatory cooperation forum. The Order also does not have a regulatory cooperation or alignment component.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
A gender-based analysis plus (GBA+) was conducted and no GBA+ impacts have been identified for this Order.
Implementation, compliance and enforcement, and service standards
This Order to amend Schedule 1 to the Act does not create new compliance, enforcement or administrative obligations for the Government of Canada and comes into force the day on which it is registered. If an Indigenous government enacts an FNGST law and concludes a related tax administration agreement with the Government of Canada, the Canada Revenue Agency would be responsible for administering and enforcing the FNGST law and collecting the tax for the Indigenous government.
Contact
Austin Lemieux
Indigenous Tax Policy Section
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Telephone: 613‑371‑9348