FEDERAL REG

SOR/2016-40: Schedule 2 to the First Nations Goods and Services Tax Act, No. 2016-1 (Dakota Plains) — Order Amending First Nations Goods and Services Tax Act

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
March 12, 2016


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 O... (Click for more)


Published on March 12, 2016

Bill Summary

SOR/2016-40: Schedule 2 to the First Nations Goods and Services Tax Act, No. 2016-1 (Dakota Plains) — Order Amending First Nations Goods and Services Tax Act

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: — the name of the Province of Manitoba; — the name of Dakota Plains; — the name of the council of Dakota Plains; and — the description of Dakota Plains’ reserve where the provincial-type tax law could apply. 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 Footnote a S.C. 2006, c. 4, s. 96 Footnote b S.C. 2003, c. 15, s. 67 Footnote 1 S.C. 2003, c. 15, s. 67

This Bill does not amend any statutes.

Sign up for alerts on this Bill

Receive emails tracking this Bill's progress.

See all your alerts in a dashboard.

Set an alert with one click and you're done!