Vol. 150, No. 25 — December 14, 2016

Registration

SOR/2016-301 November 25, 2016

FIRST NATIONS GOODS AND SERVICES TAX ACT

Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2016–3 (Squiala)

P.C. 2016-1050 November 25, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 15 (see footnote a) of the First Nations Goods and Services Tax Act (see footnote b), makes the annexed Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2016–3 (Squiala).

Order Amending Schedule 1 to the First Nations Goods and Services Tax Act, No. 2016–3 (Squiala)

Amendment

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

Column 1

First Nation

Column 2

Governing Body

Column 3

Lands

Squiala First Nation

Council of the Squiala First Nation

Each reserve of the Squiala First Nation that is not shared with another band

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

The Squiala First Nation, which is an Indian Act band situated near Chilliwack, British Columbia, asked to be listed in Schedule 1 to the First Nations Goods and Services Tax Act (the Act) in order to be able to implement the First Nations Goods and Services Tax (FNGST). The FNGST is similar to the federal Goods and Services Tax but is imposed under the law of an aboriginal government rather than under federal law.

Objective

The objective of the Order is to enable the Squiala First Nation, with the agreement of the Government of Canada, to implement the FNGST within its reserves, that are not shared with any other bands.

Description

Pursuant to section 15 of the Act, the Order amends Schedule 1 by adding

Consultation

The Squiala First Nation requested that Schedule 1 be amended to include its name, the name of its governing body and a description of its reserves where its FNGST law could apply. The amendment is consistent with the request of the Squiala First Nation.

“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 impose any administrative or compliance costs for small business.

Rationale

Amending Schedule 1 makes it possible for the governing body of the aboriginal group, with the agreement of Canada, to enact a law that imposes the FNGST within the lands described in the Order. The amendment also makes it possible for the Government of Canada and the aboriginal government to enter into a tax administration agreement in respect of the FNGST.

Listing the aboriginal group in Schedule 1 is an enabling measure. It does not require the governing body of the aboriginal group to enact a law that imposes the FNGST and does not require the aboriginal government or the Government of Canada to enter into a tax administration agreement in respect of the FNGST.

The FNGST would be implemented when the aboriginal government enacts a law for the FNGST and concludes a related tax administration agreement with Canada under which Canada would administer and enforce the FNGST law and collect the tax for the aboriginal government. In accordance with the provisions of the tax administration agreement, an aboriginal government that implements the FNGST would receive a stream of revenue that can be used for its purposes.

Implementation, enforcement and service standards

The Order to amend Schedule 1 does not create new enforcement or administrative obligations for the Government of Canada. If the aboriginal government enacts its FNGST law and concludes a tax administration agreement with the Government of Canada, then the Canada Revenue Agency will be responsible for administering and enforcing the FNGST law and collecting the tax for the aboriginal government.

Contact

Warren Hazlett
Aboriginal Tax Policy Section
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-369-3796