First Nations Fiscal Management Act (S.C. 2005, c. 9)

Short Title

Marginal note:Short title

1 This Act may be cited as the First Nations Fiscal Management Act.

Interpretation

Marginal note:Definitions

• 2 (1) The following definitions apply in this Act.

  borrowing member

  borrowing member means a First Nation that has been accepted as a borrowing member under subsection 76(2) and has not ceased to be a borrowing member under section 77. (membre emprunteur)

  capital assets

  capital assets includes capital infrastructure. (immobilisation)

  council

  council has the same meaning as council of the band in subsection 2(1) of the Indian Act. (conseil de la première nation)

  First Nation

  First Nation means a band named in the schedule. (première nation)

  First Nations Finance Authority

  First Nations Finance Authority means the corporation established under section 58. (Administration financière des premières nations)

  First Nations Financial Management Board

  First Nations Financial Management Board means the board established under subsection 38(1). (Conseil de gestion financière des premières nations)

  First Nations Gazette

  First Nations Gazette means the publication published under section 34. (Gazette des premières nations)

  First Nations Infrastructure Institute

  First Nations Infrastructure Institute means the institute established under subsection 102(1). (Institut des infrastructures des premières nations)

  First Nations Statistical Institute

  First Nations Statistical Institute[Repealed, 2012, c. 19, s. 659]

  First Nations Tax Commission

  First Nations Tax Commission means the commission established under subsection 17(1). (Commission de la fiscalité des premières nations)

  interest

  interest, in relation to reserve lands in Canada elsewhere than in Quebec, means any estate, right or interest of any nature in or to the lands, including any right to occupy, possess or use the lands, but does not include title to the lands that is held by her Majesty. (intérêt)

  intermediate account

  intermediate account means an account established by a First Nation in which other revenues to be used for financing under this Act are deposited and out of which the First Nations Finance Authority is authorized to transfer such revenues to a secured revenues trust account. (compte intermédiaire)

  local revenue law

  local revenue law means a law made under subsection 5(1). (texte législatif sur les recettes locales)

  local revenues

  local revenues means moneys raised under a local revenue law and payments made to a First Nation in lieu of a tax imposed by a law made under paragraph 5(1)(a). (recettes locales)

  Minister

  Minister means the Minister of Crown-Indigenous Relations. (ministre)

  other revenues

  other revenues means

  • (a) tax revenues and fees imposed or collected by a First Nation under a law or agreement, other than

    • (i) local revenues, and

    • (ii) revenues from taxes administered by His Majesty in right of Canada on the First Nation’s behalf, including under the First Nations Goods and Services Tax Act, unless an agreement between them specifically permits the use of the revenues as security for a loan referred to in paragraph 74(b) and any other applicable conditions are satisfied;

  • (b) royalties payable to a First Nation under the Framework Agreement, as defined in subsection 2(1) of the Framework Agreement on First Nation Land Management Act, or under the First Nations Oil and Gas and Moneys Management Act;

  • (c) royalties payable to His Majesty in right of Canada under the Indian Act or the Indian Oil and Gas Act on behalf of a First Nation that has assumed control of its moneys under the First Nations Oil and Gas and Moneys Management Act;

  • (d) revenues that are from leases, permits or other instruments or acts authorizing the use of reserve land issued under the Indian Act and that a First Nation has assumed control of under the First Nations Oil and Gas and Moneys Management Act;

  • (e) revenues from leases, permits or other instruments or acts authorizing the use of reserve land issued under the Framework Agreement, as defined in subsection 2(1) of the Framework Agreement on First Nation Land Management Act;

  • (f) revenues otherwise payable to a First Nation under any agreement with a person other than His Majesty in right of Canada — with the exception of revenues collected by His Majesty in right of Canada on the First Nation’s behalf unless an agreement between them specifically permits their use as security for a loan referred to in paragraph 74(b) and any other applicable conditions are satisfied;

  • (g) revenues, other than local revenues, received by a First Nation from businesses wholly or partly owned by it, including dividends from shares owned by it;

  • (h) transfers from a provincial, regional, municipal or local government to a First Nation;

  • (i) transfers from His Majesty in right of Canada to a First Nation if the agreement governing the transfer specifically permits the use of the transfer as security for a loan referred to in paragraph 74(b) and if any other applicable conditions are satisfied;

  • (j) interest earned by a First Nation on deposits, investments or loans, other than interest held by His Majesty in right of Canada on the First Nation’s behalf; and

  • (k) revenues prescribed by regulation. (autres recettes)

  property taxation law

  property taxation law means a law made under paragraph 5(1)(a). (texte législatif relatif à l’imposition foncière)

  right

  right, in relation to reserve lands in Quebec, means any right of any nature in or to the lands, including any right to occupy, possess or use the lands and any right of a lessee, but does not include title to the lands that is held by her Majesty. (droit)

  secured revenues trust account

  secured revenues trust account means an account established by the First Nations Finance Authority and a First Nation in which other revenues to be used for financing under this Act are maintained. (compte de recettes en fiducie garanti)

  third-party management

  third-party management[Repealed, 2023, c. 16, s. 3]

• Marginal note:Indian Act definitions

  (2) Unless the context otherwise requires, words and expressions used in this Act and not otherwise defined have the same meaning as in the Indian Act.

• Marginal note:Extended meaning of “borrowing member”

  (2.1) For the purpose of sections 57, 59, 74, 77, 78, 83 and 84 and paragraph 89(c), borrowing member also means an Indigenous group, other than a band named in the schedule, or an organization referred to in paragraph 50.1(1)(e) that has been accepted as a borrowing member under a regulation made under section 141 or 141.1.

• Marginal note:Extended meaning of “borrowing member” — section 61

  (2.2) For the purpose of section 61, borrowing member also means an Indigenous group, other than a band named in the schedule, that has been accepted as a borrowing member under a regulation made under section 141.

• Marginal note:Amendments to schedule

  (3) At the request of the council of a band, the Minister may, by order, amend the schedule in order to

  • (a) add or change the name of the band; or

  • (b) delete the name of the band, as long as there are no amounts owing by the band to the First Nations Finance Authority that remain unpaid.

• Marginal note:Regulations

  (3.1) The Governor in Council may make regulations prescribing anything that is to be prescribed under paragraph (k) of the definition other revenues.

• Marginal note:For greater certainty

  (4) For greater certainty, nothing in this Act shall be construed as requiring capital assets for the provision of local services on reserve lands to be located on reserve lands.

3 [Repealed, 2024, c. 30, s. 25]

PART 1First Nations Fiscal Powers

Marginal note:Financial administration laws

4 The council of a First Nation may not make a law under paragraph 5(1)(d) or 8.1(1)(a) until the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and that law has been approved by the First Nations Financial Management Board.

Marginal note:Local revenue laws

• 5 (1) Subject to sections 4 and 6 and any regulations made under paragraph 36(1)(d), the council of a First Nation may make laws

  • (a) respecting taxation for local purposes of reserve lands and interests or rights in reserve lands, including

    • (i) the assessment of the value of those lands and interests or rights, the requisition of any information necessary to conduct the assessment and the inspection, in accordance with procedures prescribed by regulation, for assessment purposes of any reserve lands that are subject to taxation for local purposes,

    • (ii) a mechanism to establish tax rates and apply them to the assessed value of those lands and interests or rights,

    • (iii) taxation for the provision of services in respect of reserve lands,

    • (iv) the taxation of business activities on reserve lands, and

    • (v) the imposition of development cost charges;

  • (a.1) respecting the charging of fees for the provision of services or the use of facilities on reserve lands, or for a regulatory process, permit, licence or other authorization, in relation to water, sewers, waste management, animal control, recreation and transportation, as well as any other similar services;

  • (b) authorizing the expenditure of local revenues;

  • (c) respecting procedures by which the interests of taxpayers may be represented to the council;

  • (d) respecting the borrowing of money from the First Nations Finance Authority that is secured by local revenues, including any authorization to enter into a particular borrowing agreement with that Authority;

  • (e) subject to any conditions and procedures prescribed by regulation, respecting the enforcement of laws made under paragraphs (a) and (a.1), including

    • (i) the creation of liens or, in Quebec, prior claims or legal hypothecs on reserve lands and on interests or rights in reserve lands,

    • (ii) the imposition and recovery of interest and penalties on an amount payable pursuant to a law made under that paragraph, where the amount is not paid when it is due, and the rate of interest or the amount of the penalty, as the case may be,

    • (iii) subject to subsection (7), the seizure, forfeiture and assignment of interests or rights in reserve lands,

    • (iv) the seizure and sale of personal or movable property located on reserve lands, other than property located in a dwelling,

    • (v) the discontinuance of services, and

    • (vi) the recovery of costs that are incurred by the First Nation for the enforcement of those laws;

  • (f) delegating to any person or body any of the council’s powers to make laws under any of paragraphs (a) to (e); and

  • (g) delegating to the First Nations Financial Management Board any of the council’s other powers that are required to give effect to a co-management arrangement entered into under section 52 or to give effect to third-party management under section 53.

• Marginal note:Approval required

  (2) A law made under subsection (1) does not have any force or effect until it is approved by the First Nations Tax Commission.

• Marginal note:Coming into force

  (3) A law made under subsection (1) comes into force on the later of

  • (a) the day of coming into force set out in the law, and

  • (b) the day after it is approved by the First Nations Tax Commission.

• Marginal note:Appeals

  (4) A law made under subparagraph (1)(a)(i) shall include

  • (a) an appeal procedure in respect of assessments, incorporating such procedures as are prescribed by regulation; and

  • (b) fixed rates of remuneration and fixed terms of office for any persons designated to decide the appeals.

• Marginal note:Application to competent court

  (5) The First Nation may apply to a court of competent jurisdiction for an order directing the person or entity named in the application to comply with a local revenue law, such as by

  • (a) refraining from doing anything that, in the opinion of the court, constitutes or is directed toward the contravention of that law; or

  • (b) doing anything that, in the opinion of the court, may prevent the contravention of that law.

• Marginal note:Collection — competent court

  (6) The First Nation may commence a proceeding in a court of competent jurisdiction to collect an amount owing to the First Nation under a local revenue law.

• Marginal note:Enforcement — Framework Agreement on First Nation Land Management Act

  (6.1) If a First Nation has adopted a land code as defined in subsection 2(2) of the Framework Agreement on First Nation Land Management Act or the council of a First Nation has enacted a First Nation law as defined in subsection 2(1) of that Act, the First Nation may use any enforcement measure — other than a measure for the investigation or prosecution of an offence punishable on summary conviction referred to in paragraph 19.1(a) of the Framework Agreement, as defined in subsection 2(1) of that Act — that is provided for in that land code or First Nation law to enforce a local revenue law.

• Marginal note:Assignment of interest or right

  (7) Despite the Indian Act or any instrument or act conferring an interest or right in reserve lands, if there are outstanding taxes payable under a law made under paragraph (1)(a) for more than two years, the First Nation may assign the interest or right in accordance with the conditions and procedures prescribed by regulation.

• Marginal note:Judicial notice

  (8) In any proceedings, judicial notice may be taken of a local revenue law.

• Marginal note:Statutory Instruments Act

  (9) The Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 9.