The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 2nd day of June, 2011
Ian D. Izard, Q.C., Law Clerk
21.1.1 Yale First Nation Government may make laws in respect of:
a. Direct taxation of Yale First Nation Members within Yale First Nation Land in order to raise revenue for Yale First Nation Government purposes;
b. the implementation of any taxation agreement entered into between Yale First Nation and Canada or British Columbia.
21.1.2 Yale First Nation Government law-making authority provided for in 21.1.1a does not limit the taxation powers of Canada or British Columbia.
21.1.3 Notwithstanding 2.18.1, any Yale First Nation Law made under this Chapter or any exercise of power by Yale First Nation Government, is subject to and will conform with International Legal Obligations respecting taxation, and 2.8.1 through 2.8.6 do not apply in respect of International Legal Obligations respecting taxation.
21.2.1 From time to time, at the request of Yale First Nation, Canada and British Columbia, together or separately, may negotiate and attempt to reach agreement with Yale First Nation respecting:
a. the extent to which the Direct taxation law-making authority of Yale First Nation Government under 21.1.1a may be extended to apply to Persons, other than Yale First Nation Members, within Yale First Nation Land; and
b. the manner in which the Yale First Nation Government law-making authority under 21.1.1a, as extended by the application of 21.2.1a, will be coordinated with existing federal or provincial tax systems, including:
i. the amount of tax room that Canada or British Columbia may be prepared to vacate in favour of taxes imposed by the Yale First Nation Government; and
ii. the terms and conditions under which Canada or British Columbia may administer, on behalf of Yale First Nation, taxes imposed by the Yale First Nation Government.
21.2.2 Notwithstanding the provisions of Chapter 3 Governance, parties to an agreement under 21.2.1 may provide for an alternative approach to the appeal, enforcement or adjudication of matters related to a Yale First Nation Law in respect of taxation.
21.3.1 Yale First Nation is not subject to capital taxation, including real property taxes and taxes on capital or wealth, with respect to the estate or interest of Yale First Nation in Yale First Nation Land on which there are no improvements or on which there is a designated improvement.
21.3.2 In 21.3.1, "designated improvement" means:
a. a residence of a Yale First Nation Member;
b. an improvement, all or substantially all of which is used for a public purpose or a purpose ancillary or incidental to the public purpose, including:
i. a public governance or administration building, public meeting building, public hall, public school or other public educational institution, teacherage, public library, public health facility, public care facility, public seniors home, public museum, place of public worship, manse, fire hall, police facility, court, correction facility, public recreation facility, public park, or an improvement used for Yale First Nation cultural or spiritual purposes;
ii. works of public convenience constructed or operated for the benefit of Yale First Nation Members, occupiers of Yale First Nation Land or individuals visiting or in transit through Yale First Nation Land, including public utility works, public works used to treat or deliver water or as part of a public sewer system, public roads, public bridges, public drainage ditches, traffic signals, street lights, public sidewalks and public parking lots; or
iii. other improvements similar in nature to those described in 21.3.2b.i and ii;
c. an improvement that is used primarily for the management, protection or enhancement of a natural resource, including a Forest Resource or a fishery or wildlife resource, other than an improvement that is used primarily in harvesting or processing a natural resource for profit; and
d. Forest Resources and forest roads.
21.3.3 In 21.3.2b, "public purpose" does not include the provision of property or services primarily for the purpose of profit.
21.3.4 For the purposes of 21.3.1 and 21.3.2:
a. for greater certainty, Yale First Nation Land includes the improvements on those lands; and
b. an improvement is deemed to be on the land that is necessarily ancillary to the use of the improvement.
21.3.5 For greater certainty, the exemption from taxation in 21.3.1 does not apply to a taxpayer other than Yale First Nation nor does it apply in respect of a disposition of Yale First Nation Land or interests in those lands by Yale First Nation.
21.3.6 For federal and provincial income tax purposes, proceeds of disposition received by Yale First Nation on expropriation of Yale First Nation Land in accordance with Chapter 12 Lands are not taxable.
21.4.1 A transfer under this Agreement of Yale First Nation Capital is not taxable and a recognition of ownership under this Agreement of Yale First Nation Capital is not taxable.
21.4.2 For purposes of 21.4.1, an amount paid to a Yale First Nation Member is deemed to be a transfer of Yale First Nation Capital under this Agreement if the payment:
a. reasonably can be considered to be a distribution of a Capital Transfer received by Yale First Nation; and
b. becomes payable to the Yale First Nation Member within 90 days and is paid to the Yale First Nation Member within 270 days from the date that Yale First Nation receives a payment of the Capital Transfer.
21.4.3 For federal and provincial income tax purposes, Yale First Nation Capital is deemed to have been acquired by Yale First Nation at a cost equal to its fair market value on the later of:
a. the Effective Date; and
b. the date of transfer of ownership or the date of recognition of ownership, as the case may be.
21.5.1 Section 87 of the Indian Act will have no application to a Yale First Nation Member:
a. with respect to Transaction Taxes, as of the first day of the first month after the eighth anniversary of the Effective Date; and
b. with respect to all other taxes, as of the first day of the first calendar year after the twelfth anniversary of the Effective Date.
21.5.2 Subject to 21.1.1a, 21.2.1a, 21.5.3 through 21.5.6, as of the Effective Date, the following is exempt from taxation:
a. the interest of an Indian in Yale First Nation Land that was an Indian Reserve or Surrendered Lands on the day before the Effective Date;
b. the personal property of an Indian situated on Yale First Nation Land that was an Indian Reserve on the day before the Effective Date; and
c. an Indian in respect of the ownership, occupation, possession or use of any property mentioned in 21.5.2a or 21.5.2b.
21.5.3 21.5.2 will cease to be effective:
a. with respect to Transaction Taxes, as of the first day of the first month after the eighth anniversary of the Effective Date; and
b. with respect to all other taxes, as of the first day of the first calendar year after the twelfth anniversary of the Effective Date.
21.5.4 21.5.2 will be interpreted to exempt an Indian in respect of a property or interest, or in respect of the ownership, occupation, possession or use thereof, in the same manner and under the same conditions in which section 87 of the Indian Act would have applied, but for this Agreement, if the property were situated on, or the interest were in, an Indian Reserve.
21.5.5 21.5.2 only applies to an Indian during the period that section 87 of the Indian Act applies to the Indian.
21.5.6 If Yale First Nation Government imposes a tax within Yale First Nation Land and concludes a tax agreement for that purpose with Canada or British Columbia as contemplated in 21.2.1, 21.5.2 does not apply to the extent that Yale First Nation Government, Canada or British Columbia, as the case may be, imposes a tax that the particular taxation agreement specifies is applicable to Yale First Nation Members and other Indians within Yale First Nation Land.
21.6.1 The Parties will enter into a tax treatment agreement, which will come into effect on the Effective Date.
21.6.2 Canada and British Columbia will recommend to Parliament and the Legislature of British Columbia, respectively, that the tax treatment agreement be given effect and force of law under federal and provincial legislation.