Order Amending Schedules 1 and 2 to the First Nations Goods and Services Tax Act: SOR/2022-275
Canada Gazette, Part II, Volume 157, Number 1
Registration
SOR/2022-275 December 15, 2022
FIRST NATIONS GOODS AND SERVICES TAX ACT
P.C. 2022-1318 December 15, 2022
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending Schedules 1 and 2 to the First Nations Goods and Services Tax Act under sections 15footnote a and 29footnote b of the First Nations Goods and Services Tax Act footnote c.
Order Amending Schedules 1 and 2 to the First Nations Goods and Services Tax Act
Amendments
| Column 1 First Nation |
Column 2 Governing Body |
Column 3 Lands |
|---|---|---|
| Gambler First Nation | Council of the Gambler First Nation | Each reserve of the Gambler First Nation that is not shared with another band |
| Kingsclear | Council of Kingsclear | Each reserve of Kingsclear that is not shared with another band |
| Madawaska Maliseet First Nation | Council of the Madawaska Maliseet First Nation | Each reserve of the Madawaska Maliseet First Nation that is not shared with another band |
| Oromocto First Nation | Council of the Oromocto First Nation | Reserve of the Oromocto First Nation |
| Saint Mary’s | Council of Saint Mary’s | Reserves of Saint Mary’s |
| Tobique | Council of Tobique | Each reserve of Tobique that is not shared with another band |
| Woodstock | Council of Woodstock | Each reserve of Woodstock that is not shared with another band |
| Column 1 Band |
Column 2 Council of the Band |
Column 3 Reserves |
Column 4 Specified Province |
|---|---|---|---|
| Gamblers | Council of the Gamblers | Each reserve of the Gamblers that is not shared with another band | Manitoba |
| Column 1 Band |
Column 2 Council of the Band |
Column 3 Reserves |
Column 4 Specified Province |
|---|---|---|---|
| Gambler First Nation | Council of the Gambler First Nation | Each reserve of the Gambler First Nation that is not shared with another band | Manitoba |
Coming into Force
4 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
Seven First Nations have requested to be listed in Schedule 1 to the First Nations Goods and Services Tax Act (the Act) in order to be able to implement a First Nations Goods and Services Tax (FNGST) within their reserves, which are not shared with any other bands. 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.
The requesting First Nations are the following:
- Gambler First Nation, located in Manitoba;
- Kingsclear, located in New Brunswick;
- Madawaska Maliseet First Nation, located in New Brunswick;
- Oromocto First Nation, located in New Brunswick;
- Saint Mary’s, located in New Brunswick;
- Tobique, located in New Brunswick; and
- Woodstock, located in New Brunswick.
The Act also enables the governing body of an Indigenous group listed in Schedule 2 with its respective province to enact a law that imposes a provincial-type sales tax within their reserves. On April 4, 2017, the formerly named First Nation “Gamblers” changed its name to the “Gambler First Nation” which is required to be reflected in Schedule 2 to the Act.
Background
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 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.
Schedule 2 of the Act enables an Indigenous government to enact a law that imposes a direct tax similar to a particular provincial tax if the relevant province agrees and is also listed in the Schedule. The province of Manitoba has agreed to the amendment to reflect the name change of Gambler First Nation in Schedule 2.
There are currently 65 First Nations listed in Schedule 1, with which the Government of Canada has concluded 38 FNGST tax administration agreements. There are currently 67 First Nations listed on Schedule 2, many of which have concluded tax administration agreements with provinces.
Objective
The objective of the Order Amending Schedules 1 and 2 to the First Nations Goods and Services Tax Act is to enable the above noted seven First Nations, with the agreement of the Government of Canada, to implement an FNGST within their reserves that are not shared with any other bands and to reflect the name change of the Gambler First Nation on Schedule 2.
Description
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. The Order follows this procedure and amends Schedule 1 by adding
- the names of the seven requesting First Nations:
- Gambler First Nation, Kingsclear, Madawaska Maliseet First Nation, Oromocto First Nation, Saint Mary’s, Tobique, and Woodstock;
- the names of their governing bodies; and
- the description of their reserves where their FNGST laws could apply.
The Order also amends Schedule 2 to reflect the name change from “Gamblers” to “Gambler First Nation.”
Regulatory development
Consultation
The parties affected by the amendments are the seven requesting First Nations, the province of Manitoba and the Government of Canada. The Order is consistent with the requests of the seven First Nations noted above and is not expected to affect other Indigenous groups. The Gambler First Nation and the province of Manitoba have agreed to the amendment of Schedule 2. No other consultations were undertaken in respect of this Order. Finally, since the above noted First Nations and Manitoba are the only groups affected by this Order, prepublication was not required.
Modern treaty obligations and Indigenous engagement and consultation
The seven First Nations noted above requested to amend Schedule 1 to include their names, the names of their governing bodies and a description of their reserves where their FNGST laws could apply. In addition, the amendment to Schedule 2 is only to reflect the name change from “Gamblers” to “Gambler First Nation.” There are no modern treaty obligations related to this Order. The proposal is 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
Benefits and costs
There are no immediate and direct costs associated with this Order. Amending Schedule 1 makes it possible for the governing bodies of the seven First Nations noted above, with the agreement of Canada, to enact a law that imposes the FNGST within their lands described in the Order. The amendment also makes it possible for the Government of Canada and the seven First Nations noted above to enter into tax administration agreements in respect of the FNGST.
Listing the seven First Nations noted above in Schedule 1 is an enabling measure. It does not require their governing bodies to enact a law that imposes the FNGST and does not require those First Nations or the Government of Canada to enter into tax administration agreements in respect of the FNGST.
There may be minimal future costs that could be incurred as a result of this Order as the FNGST would be able to be implemented if any of the seven First Nations noted above enacts a law for the FNGST and concludes a related tax administration agreement with Canada. Under such agreement, Canada would administer and enforce the FNGST law and collect the tax for the Indigenous government. If agreements are concluded with any of these groups, there would be a marginal increase in resource demands for the Canada Revenue Agency and Finance Canada 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.
Finally, the amendment to Schedule 2 is only to reflect the name change from “Gamblers” to “Gambler First Nation.”
Small business lens
The small business lens does not apply since 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 the Order has 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 Schedules 1 and 2 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. In respect of the amendment to Schedule 2, the change is only to update the name of the Gambler First Nation and will have no impact on their existing tax agreement with the Province of Manitoba.
Contact
Austin Lemieux
Indigenous Tax Policy Section
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Telephone: 613‑371‑9348