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

Act current to 2020-07-28 and last amended on 2020-07-20. Previous Versions

PART 1First Nations Fiscal Powers (continued)

Marginal note:No repeal by borrowing members

  •  (1) A borrowing member shall not repeal a property taxation law or a law made under paragraph 5(1)(a.1) unless

    • (a) the revenues raised under that law, if any, are not being used as security for financing obtained from the First Nations Finance Authority and the repeal of that law would not adversely affect the member’s obligations to the First Nations Finance Authority; or

    • (b) the law is concurrently replaced by a new law of the same nature that would not result in a reduction of the borrowing member’s borrowing capacity.

  • Marginal note:Priority to Authority

    (2) A law made under paragraph 5(1)(b) by a borrowing member shall not authorize the expenditure of local revenues unless the borrowing member’s budget provides for the payment of all amounts payable to the First Nations Finance Authority during the budget period.

  • Marginal note:Financial commitment

    (3) The borrowing member shall, in every year, reserve such local revenues as are required to ensure that all amounts authorized to be paid to the First Nations Finance Authority in the year are actually paid in that year.

  • 2005, c. 9, s. 11
  • 2015, c. 36, s. 183

Marginal note:Legal capacity of first nations

 For greater certainty, for the purposes of Part 4, a borrowing member has the capacity to contract and to sue and be sued.

Marginal note:Local revenue account

  •  (1) Local revenues of a First Nation shall be placed in a local revenue account with a financial institution, separate from other moneys of the First Nation.

  • Marginal note:Restriction on expenditures

    (2) Local revenues may be expended only under the authority of a law made under paragraph 5(1)(b).

  • Marginal note:Balanced budget

    (3) Expenditures provided for in a law made under paragraph 5(1)(b) shall not exceed the local revenues estimated for the year in which those expenditures are to be made, less any deficit accumulated from prior years.

  • 2005, c. 9, s. 13
  • 2015, c. 36, s. 184
  • 2018, c. 27, s. 414(E)

Marginal note:Expenditure not authorized by law

 Despite subsection 13(2), a First Nation is authorized to make an expenditure of local revenues other than under the authority of a law made under paragraph 5(1)(b) in one of the following circumstances:

  • (a) in the case where no law has already been made under that paragraph establishing a budget for the year in which that expenditure is made, the First Nation, after making that expenditure, makes a law under that paragraph that authorizes the making of that expenditure; or

  • (b) in the case where a law has already been made under that paragraph establishing a budget for the year in which that expenditure is made, the First Nation is satisfied that the making of that expenditure constitutes an urgent measure and the First Nation, as soon as feasible after making the expenditure, amends that law to authorize the making of that expenditure.

  • 2015, c. 36, s. 185
  • 2018, c. 27, s. 414(E)

Marginal note:Local revenues

  •  (1) Local revenues of a First Nation shall be reported on and accounted for separately from other moneys of the First Nation in compliance with the standards established under paragraph 55(1)(d).

  • Marginal note:Audited reports

    (1.1) For the purposes of subsection (1), the First Nation shall prepare a financial report on its local revenues that shall be audited at least once each year. However, if it is authorised by a standard established under paragraph 55(1)(d), the First Nation may instead report on its local revenues in its audited annual financial statements as a distinct segment of the activities that appear in the statements.

  • Marginal note:Access to report

    (2) The audited financial report or the audited annual financial statements, as the case may be, shall be made available to

    • (a) the members of the First Nation;

    • (b) any other persons who have an interest or right in the First Nation’s reserve lands;

    • (c) the First Nations Tax Commission, the First Nations Financial Management Board and the First Nations Finance Authority; and

    • (d) the Minister.

  • 2005, c. 9, s. 14
  • 2015, c. 36, s. 186
  • 2018, c. 27, ss. 390, 414(E)

Marginal note:Non-application of certain provisions

 Paragraphs 83(1)(a) and (b) to (g) and section 84 of the Indian Act do not apply to a First Nation. In addition, any regulations made under paragraph 73(1)(m) of that Act do not apply to a First Nation in respect of the borrowing of money under a law made under paragraph 5(1)(d).

  • 2005, c. 9, s. 15
  • 2015, c. 36, s. 187
  • 2018, c. 27, s. 414(E)

PART 2First Nations Tax Commission

Interpretation

Marginal note:Definitions

 The following definitions apply in this Part.

Commission

Commission means the First Nations Tax Commission. (Commission)

taxpayer

taxpayer means a person paying tax under a property taxation law. (contribuable)

Establishment and Organization of Commission

Marginal note:Commission

  •  (1) There is hereby established a commission, to be known as the First Nations Tax Commission, consisting of 10 commissioners, including a Chief Commissioner and Deputy Chief Commissioner.

  • Marginal note:Capacity, rights, powers and privileges

    (2) The Commission has the capacity, rights, powers and privileges of a natural person, including the capacity to

    • (a) enter into contracts;

    • (b) acquire, hold and dispose of property or an interest or right in property, or lease property;

    • (c) raise, invest or borrow money; and

    • (d) sue and be sued.

  • 2005, c. 9, s. 17
  • 2018, c. 27, s. 391

Marginal note:When agent of Her Majesty

  •  (1) The Commission is an agent of Her Majesty only for the approval of local revenue laws.

  • Marginal note:Savings

    (2) For the purpose of subsection (1), the issuance of a certificate referred to in paragraph 32(2)(b) is deemed not to be an approval of a local revenue law.

Marginal note:Appointment of Chief Commissioner

  •  (1) On the recommendation of the Minister, the Governor in Council shall appoint a Chief Commissioner and Deputy Chief Commissioner.

  • Marginal note:Tenure

    (2) The Chief Commissioner and Deputy Chief Commissioner hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

Marginal note:Appointment of commissioners

  •  (1) On the recommendation of the Minister, the Governor in Council shall appoint four commissioners to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

  • Marginal note:Appointment of commissioners

    (2) On the recommendation of the Minister, the Governor in Council shall appoint three additional commissioners — one of whom shall be a taxpayer using reserve lands for commercial, one for residential and one for utility purposes — to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

  • Marginal note:Appointment of additional commissioner

    (3) A body prescribed by regulation shall appoint an additional commissioner to hold office during pleasure for a term not exceeding five years.

  • Marginal note:Staggered terms

    (4) In determining the term of appointment of commissioners, the Governor in Council shall endeavour to ensure that the terms of no more than three commissioners expire in any one calendar year.

  • Marginal note:Qualifications

    (5) The Commission shall be composed of men and women from across Canada, including members of First Nations, who are committed to the development of a system of First Nations real property taxation and who have the experience or capacity to enable the Commission to fulfil its mandate.

  • 2005, c. 9, s. 20
  • 2018, c. 27, s. 414(E)
 
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