British Columbia Order in Council — Order under Nisga'a Final Agreement The Minister of Aboriginal Affairs to enter into the following agreements: a) Nisga'a Nation Fiscal Financing Agreement b) Nisga'a Nation Own Source Revenue Agreement c) Nisga'a Nation Taxation Agreement (O.C. 624/2000)

O.C. 624/2000

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 624 , Approved and ()Tiered A PR 2 8 2000 leutenant G Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor in Council, by and with the consent Executive Council, orders that (

a) the Minister of Aboriginal Affairs is authorized on behalf of Her Majesty the Queen in ri British Columbia to enter into the following agreements contemplated by the Nisga'a Agreement: (

i) an agreement substantially in the form of the attached proposed agreement entitled "IN Nation Fiscal Financing Agreement"; (ii) an agreement substantially in the form of the attached proposed agreement entitled "Is Nation Own Source Revenue Agreement", and (

b) the Minister of Finance and Corporate Relations is authorized on behalf of Her Majesty the in right of British Columbia to enter into an agreement substantially in the form of the at proposed agreement entitled "Nisga'a Nation Taxation Agreement". Minister of Aboriginal (This

part is for administrative purposes only is not part of the Order.) Authority under which Order is made: Act and section:- Nisga'a Final Agreement Act s. 10 Other (specify).- March 9, 2000 9 kZ////0 o .

NISGA'A NATION TAXATION AGREEMENT ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A Canada British Columbia/Colombie-Britannique Nisga'a Nation/Nation Nisga'a

NISQA'A NATION TAXATION AGREEMENT THIS AGREEMENT made the _ day of , 2000. BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Finance ("Canada") OF THE FIRST PART AND: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, as represented by the Minister of Finance and Corporate Relations ("British Columbia") OF THE SECOND PART AND: NISj A'A NATION, as represented by the President (the "Nisga'a Nation") OF THE THIRD PART

WHEREAS: A. The Nisga'a Nation, Canada and British Columbia have entered into a treaty, referred to as the "Nisga'a Treaty", which provides that, on its effective date, Canada, British Columbia and the Nation will enter into a Taxation Agreement; and B. This Agreement is the Taxation Agreement referred to in recital A. 1

NISQA'A NATION TAXATION AGREEMENT

NOW THEREFORE in consideration of the premises and the covenants and agreements set out below, the Parties agree as follows:

DEFINITIONS 1. Subject to paragraph 7, words and expressions not defined in this Agreement but defined in the Nisga'a Treaty have the meanings ascribed to them in the Nisga'a Treaty. In this Agreement: "Chapter" means

Chapter of the Nisga'a Treaty; "Cultural Property Export and Import Act" means the Cultural Property Export and Import Act, R.S.C. 1985, c.

C-51; "effective date" means the date upon which the Nisga'a Treaty takes effect; "eligible corporation" means: a. a corporation all of the shares (except directors' qualifying shares) of which are owned by the Nisga'a Nation, a Nisga'a Village, a Nisga'a settlement trust, or any combination of those persons; or b. a corporation all of the shares (except directors' qualifying shares) of which are owned by; i. the Nisga'a Nation, a Nisga'a Village, or a Nisga'a settlement trust, ii. a corporation defined by this subparagraph, or iii. any combination of the persons referred to in subparagraphs (

i) and (ii); "Excise Tax Act" means the Excise Tax Act, R.S.C. 1985, c.E-15; "Mineral Land Tax Act" means the Mineral Land Tax Act, RSBC 1996, c. 290; "Mineral Tax Act" means the Mineral Tax Act, RSBC 1996, c. 291; "Mining Tax Act" means the Mining Tax Act, RSBC 1996, c. 295; "Motor Fuel Tax Act" means the Motor Fuel Tax Act, RSBC 1996, c. 317; 2

NISgA'A NATION TAXATION AGREEMENT "Nisga'a Treaty" means the treaty entered into between Canada, British Columbia and the Nisga'a Nation, as amended from time to time, that is a treaty within the meaning of sections 25 and 35 of the Constitution Act, 1982; "Parties" means the parties to this Agreement and "Party" means any one of them; "Petroleum and Natural Gas Act" means the Petroleum -Ind Natural Gas Act, RSBC 1996, c. 361; "Property Transfer Tax Act" means the Property Transfer Tax Act, RSBC 1996, c. 378; "Social Service Tax Act" means the Social Service Tax Act, RSBC 1996, c. 431; LAWS OF GENERAL APPLICATION 3.

Nothing in this Agreement or in any law of Canada or British Columbia that gives effect to the Nisga'a Treaty or this Agreement limits any entitlement of the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation, to any benefit available to it under a law of general application. DEEMED PUBLIC BODIES 4. For purposes of paragraph 149(l)(

c) of the Income Tax Act, the Nisga'a Nation and each Nisga'a Village is deemed to be a public body performing a function of government in Canada. 5. For purposes of paragraphs 149(I)(

d) to 149(1)(d.6) and subsections 149(1.1) to 149(1.3) of the Income Tax Act, the Nisga'a Nation and each Nisga'a Village is deemed to be a municipality in Canada. CLAIMANT 6. In this Agreement, "claimant" means: a. in paragraphs 9 to 13: i. the Nisga'a Nation; ii. a Nisga'a Village; or iii. a person, other than a financial institution, that is 3

NISGA'A NATION TAXATION AGREEMENT A. a trust, board, commission, tribunal or similar body, established by the Nisga'a Nation, a Nisga'a Village, or by any combination of the Nisga'a Nation or Nisga'a Villages; or B. an eligible corporation incorporated under federal or provincial laws; and b. in paragraphs 16 to 18, a person that would be referred to in subparagraph (

a) if subparagraph (a)(iii) were read without reference to the words "other than a financial institution". GOODS AND SERVICES TAX 7. Subject to paragraphs 8 to 10, words used in paragraph 6 and paragraphs 9 to 15 have the same meaning as in

Part ix of the Excise Tax Act. 8. The definition "government"in subsection 123(1) of the Excise Tax Act does not apply to this Agreement. 9.

In paragraph 12, "permanent establishment" of a claimant means: a. a fixed place of business of the claimant and includes: a place of management, a branch, an office, a factory, a workshop or other site; and ii a mine, an oil or gas well, a quarry, timberland or any other place of extraction of a natural resource; b. a fixed place of business of another person (other than a broker, general commission agent or other independent agent acting in the ordinary course of business or any person established by the claimant) who is acting on behalf of the claimant; c. a place at which the claimant uses substantial machinery or equipment; and d. any real property owned, or supplied on a regular or continuous basis, by the claimant. 10.

In paragraph 11, "specified activity" of a claimant means: a. a business or other activity that has the primary purpose of providing property or services to Nisga'a citizens, the Nisga'a Nation, a Nisga'a Village, eligible 4

NISGA'A NATION TAXATION AGREEMENT corporations, individuals resident on Nisga'a Lands, or any combination of those persons; or b. any other business or activity that Canada and the Nisga'a Nation agree is included under this paragraph. 11. A claimant who acquires or imports property or a service in respect of which it pays tax under subsection 165(1) or

section 212 or 218 of the Excise Tax Act is entitled to a refund of that portion of the tax that is not recoverable as an input tax credit under

Part IX of that Act and is not otherwise recovered under any law, if: a. the property or service was not acquired or imported for consumption, use or supply in the course of a business or other activity, other than a specified activity, engaged in by the claimant for profit or gain; b. the property or service was acquired or imported for consumption, use or supply in the course of performing a function of government under the Nisga'a Treaty or a subsequent agreement between Canada and British Columbia, together or separately, and the Nisga'a Nation; and c. the property or service: i. is capital property of the claimant acquired or imported for consumption, use or supply, at any place, primarily in the course of engaging, on Nisga'a Lands, in a business or other activity of the claimant; ii. is a service in respect of capital property referred to in subparagraph (

i) or is property supplied in conjunction with a service in respect of capital property referred to in that subparagraph; or iii. in the case of property or a service referred to in neither subparagraph (

i) nor subparagraph (ii), was acquired or imported for consumption, use or supply, at any place, exclusively in the course of engaging, on Nisga'a Lands, in a business or other activity of the claimant. 12.

For the purposes of subparagraph 11(c), where a claimant is engaging in a business or other activity partly on Nisga'a Lands and partly at or through one or more permanent establishments of the claimant that are not located on Nisga'a Lands, the claimant is deemed not to be engaging, on Nisga'a Lands, in the business or activity: a. in the case of a business or activity that involves the making of supplies of real property on a regular or continuous basis by way of lease, licence or similar arrangement, if the property is not, and is not intended to be, located on Nisga'a Lands; and 5

NISQA'A NATION TAXATION AGREEMENT b. in any other case, to the extent to which the claimant is engaging in the business or activity at or through one or more permanent establishments of the claimant that are not located on Nisga'a Lands. 13. Despite paragraph 141.1(1)(b), subsection 200(3),

section 1 of

Part V.1 of

Schedule V and sections 2 and 25 of

Part VI of that Schedule, of the Excise Tax Act, and paragraph 3 of this Agreement, if a claimant makes a supply by way of sale of property that is capital property of the claimant and in respect of which the claimant was entitled to receive a refund under paragraph 11, the supply is deemed, for the purposes of

Part IX of that Act, to be made in the course of a commercial activity of the claimant. 14. A refund of tax under paragraph 11 will not be paid unless an application for the refund is filed with the Minister of National Revenue within four years after the tax was paid. 15. The provisions of

Part IX of the Excise Tax Act apply, with such modifications as the circumstances require, in respect of claims under paragraph 11 and in respect of amounts paid or payable as a refund under that paragraph, as though the refund provided for under that paragraph were a rebate provided for under Division VI of that Part. SOCIAL SERVICE TAX AND MOTOR FUEL TAX 16.

Subject to paragraphs 17 to 20, a claimant is entitled to a refund of: a. tax, other than tax on the purchase of liquor, paid by the claimant under the Social Service Tax Act; or b. tax paid by the claimant under the Motor Fuel Tax Act in respect of property, service or fuel: c. acquired or leased at any place; or d. consumed or used at any place. 17.

A claimant is entitled to a refund under paragraph 16, to the extent that the tax is not otherwise recoverable by the claimant under any law, if: a. the property, service or fuel was not acquired or leased for consumption or use in the course of a business or other activity for profit or gain; and b. substantially all of the property, service or fuel is consumed or used in respect of performing a function of government, within Nisga'a Lands, under the Nisga'a Treaty or a subsequent agreement between Canada and British Columbia, together or separately, and the Nisga'a Nation. 6

NISGA'A NATION TAXATION AGREEMENT 18. A claimant must pay a tax at the time of a change of use as required by the Social Service Tax Act if: a. the claimant has received a refund under paragraph 16; and b. the use of the property or services in respect of which the refund was made changes to a use for which the claimant would not be entitled to a refund under paragraph 16. 19. The Social Service Tax Act, the Motor Fuel Tax Act and any other relevant law of British Columbia apply to paragraphs 16 to 18 to the extent that they are not inconsistent with those paragraphs. 20.

For all purposes a refund made under paragraph 16 is deemed to be made under the Social Service Tax Act or the Motor Fuel Tax Act, as the case may be. PROPERTY TRANSFER TAX 21. Neither the Nisga'a Nation nor any Nisga'a Village is subject to tax under the Property Transfer Tax Act in respect of Nisga'a Lands. 22. No Nisga' a citizen is subject to tax under the Property Transfer Tax Act in respect of Nisga'a Lands while the remission order referred to in paragraph 7 of the Taxation

Chapter is in effect. NISGA'A CAPITAL 23. A transfer of Nisga'a capital, other than cash, between or among two or more of the Nisga'a Nation, Nisga'a Villages and Nisga'a government corporations, is not taxable. MINERAL RESOURCE TAXES /4.

Subject to paragraph 25, no person is subject to tax under: a. the Mineral Tax Act on income derived from the operation of a mine; b. the Mining Tax Act on income derived from mining operations; or c. the Petroleum and Natural Gas Act on revenues; in respect of, and only to the extent of, the fee simple interest of the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation in a mineral resource on or under Nisga'a Lands, or in respect of minerals extracted from the resource. 7

NISGA'A NATION TAXATION AGREEMENT 25. Paragraph 24 applies to a person only to the extent that: a. the income is derived from an operation referred to in subparagraphs 24(

a) and (

b) that is conducted on or under Nisga'a Lands; or b. the revenue referred to in subparagraph 24(

c) is from petroleum or natural gas derived from Nisga'a Lands. 26. Neither the Nisga'a Nation, a Nisga'a Village nor a Nisga'a government corporation is subject to tax under the Mineral Land Tax Act on Nisga'a Lands. REAL PROPERTY TAXATION 27. No estate or interest of the Nisga'a Nation, a Nisga'a Village, or a Nisga'a government corporation, in Nisga'a Fee Simple Lands, is subject to real property taxation, except for an estate or interest in a parcel of Nisga'a Fee Simple Lands when the parcel is used for a purpose other than government activities or not for profit activities. NISjA'A SETTLEMENT TRUSTS 28.

A Nisga'a settlement trust, beneficial interests in a Nisga'a settlement trust, and any amount contributed to a Nisga'a settlement trust or distributed as income or capital by a Nisga'a settlement trust to a beneficiary is not taxable except that: a. any amount of income or capital distributed in a particular year to a beneficiary who is a Nisga'a citizen will be deemed for purposes of subsection 104(13) of the Income Tax Act to be income of the trust that was payable to the beneficiary in the particular year; b. a Nisga'a settlement trust is subject to the provisions of

Part XI of the Income Tax Act, as if that Part was stated to be specifically applicable to Nisga'a settlement trusts and was amended as required to take into account the investments described under subparagraph (

c) of the definition of "Nisga'a settlement trust"; c. a Nisga'a settlement trust is subject to tax under Parts I and 1.1 of the Income Tax Act and for that purpose its taxable income will be calculated as the total of: i. the amount of any income derived during the year from a property, including any taxable capital gain from the disposition of that property, that is not a qualified investment for the trust or that is not acquired in the course of carrying on a permitted activity of the trust; and ii. any amount contributed to the trust that is not permitted under the terms of the trust; and

NISGA'A NATION TAXATION AGREEMENT d. goods and services tax or similar taxes may be imposed on goods or services consumed by the trust or the trustee. 29.

If the Minister of National Revenue is of the opinion that a Nisga'a settlement trust has failed to comply with the provisions of paragraph 28 or any of the terms set out in the definition of Nisga'a settlement trust, the Minister may notify the trust in writing and, if the trust does not address the default to the satisfaction of the Minister within 100 days after the registered mailing of such notice, the Minister may revoke the status of the trust as a Nisga'a settlement trust, subject to the same right of appeal as applies to a revocation of the registration of a registered charity under the Income Tax Act. 30.

If the Minister of National Revenue revokes the status of a Nisga'a settlement trust, the taxation year of the trust that would otherwise have included the time of revocation will be deemed to end immediately before the time of the revocation, and the Nisga'a settlement trust will be deemed to dispose of all its assets immediately before that time for proceeds equal to their fair market value and to re-acquire those assets at the time at a cost equal to that fair market value, and for the purposes of calculating the taxable income of the trust in subparagraph 28(c), an amount equal to the amount by which that fair market value exceeds the cost amounts of the assets of the trust will be deemed to be a capital gain from a disposition of property that is not a qualified property for the trust. 31.

For the purposes of paragraph 28, the distribution by a Nisga'a settlement trust of any amount to a beneficiary of the trust in respect of the interest of the beneficiary in the trust will not be cause for the revocation of the status of the Nisga'a settlement trust. 32. The rule against perpetuities does not apply to a Nisga'a settlement trust. FUTURE PROVINCIAL TAXES 33.

If British Columbia introduces a tax, and it is reasonable to anticipate that the tax will result in a tax liability of the Nisga'a Nation or a Nisga'a Village in the course of exercising a function of government under the Nisga'a Treaty or a subsequent agreement between Canada and British Columbia, together or separately, and the Nisga'a Nation, on Nisga'a Lands then, at the request of the Nisga'a Nation, British Columbia will consult with the Nisga'a Nation in respect of the possible impact of the tax on the Nisga'a Nation or a Nisga'a Village. GIFTS TO THE NISGA'A NATION OR A NIS GA'A VILLAGE 34.

A person who makes a gift to the Nisga'a Nation or a Nisga'a Village has the same tax treatment in respect of the gift as the person would have if the gift had been made to a charity registered under the Income Tax Act. 9

NISGA'A NATION TAXATION AGREEMENT 35. For greater certainty, paragraph 34 does not require the Nisga'a Nation or a Nisga'a Village to comply with the requirements of the Income Tax Act relating to charities registered under that Act. CULTURAL PROPERTY EXPORT AND IMPORT ACT 36.

The Nisga'a Nation will be treated as a public authority designated under subsection 32(2) of the Cultural Property Export and Import Act, and any not for profit organization established by the Nisga'a Nation to receive, store and display cultural artifacts will be treated as an institution designated under that subsection of that Act, if the Nisga'a Nation or the not for profit organization, as the case may be: a. has a facility that meets the environmental requirements of the Movable Cultural Property Program in respect of long term storage and display of cultural artifacts; or b. has the use, through a long term agreement with a public authority or an institution designated under subsection 32(2) of the Cultural Property Export and Import Act, of a facility that meets the environmental requirements of the Movable Cultural Property Program; and uses either facility to store or display cultural artifacts, including any that are donated to it and that are included in "total cultural gifts" within the meaning of subsection 118.1(1) of the Income Tax Act for purposes of computing the income tax liability of the donor.

OTHER LAND CLAIMS AGREEMENTS 37.

If, within 15 years of the effective date, Canada or British Columbia enacts legislation giving effect to another land claims agreement applicable in northwest British Columbia that provides that all of the lands that were set apart as Indian reserves of an Indian band whose members were represented by a party to the agreement cease to be reserves, and provides in the land claims agreement or in another agreement that is referred to in that land claims agreement: a. tax powers that are not available to Nisga'a Lisims Government or Nisga'a Village Governments; or b. tax exemptions that are not available to the Nisga'a Nation or Nisga'a Villages; Canada and British Columbia, on request of the Nisga'a Nation, will negotiate and attempt to reach agreement with the Nisga'a Nation to provide appropriate adjustments to the tax powers of Nisga'a Lisims Government and Nisga'a Village Governments, and to 10

NISQA'A NATION TAXATION AGREEMENT the tax exemptions available to the Nisga'a Nation and Nisga'a Villages, taking into account the particular circumstances of the other land claims agreement. INTERNATIONAL TREATIES 38. Legislation enacted by Nisga'a Lisims Government or a Nisga'a Village Government is subject to relevant obligations agreed to by Canada under international treaties, conventions or protocols in respect of taxation. LEGISLATION 39.

Canada and British Columbia will recommend to Parliament and the Legislature, respectively, that the provisions of this Agreement be given effect under federal and provincial law. 40. After the effective date, Canada and British Columbia will consult with the Nisga'a Nation: a. during the drafting of any law to give effect to the provisions of the Taxation Chapter, including paragraphs 5 to 12; and b. during the drafting of any law to give effect to the provisions of this Agreement. DISPUTE RESOLUTION 41.

The Parties desire and expect that most disagreements will be resolved by informal discussion, between or among the Parties, without the necessity of invoking a dispute resolution mechanism. 42. In the event of a dispute between any of the Parties arising under this Agreement, the Parties involved in the dispute will use the procedure set out in paragraphs 43 to 48 before pursuing any other legal remedy. 43. Within 30 days of any Party receiving written notice from any other Party of a dispute under this Agreement, the Parties involved in the dispute will meet and attempt in good faith to settle the dispute. 44.

If , within 60 days after the meeting referred to in paragraph 43, the Parties involved in the dispute fail to resolve the dispute, they will submit the dispute to mediation and equally bear the costs of the mediation. 45. The Parties involved in the dispute will jointly select a mediator but if, after 30 days, they are unable to agree on the choice of a mediator, the matter of the choice of a mediator will 11

NISA'A NATION TAXATION AGREEMENT be referred to a judge of the Supreme Court of British Columbia who will be asked to choose a mediator. 46. The Parties involved in the dispute will participate in good faith in the mediation process for a period of 60 days. 47. The Parties involved in the dispute may agree to time periods other than those referred to in paragraphs 43 to 46. 48. Notwithstanding paragraphs 42 to 47, the Parties involved in a dispute may agree to use any of the provisions of the Dispute Resolution Chapter. TERM OF THIS AGREEMENT 49.

The term of this Agreement: a. starts on the effective date; and b. subject to paragraph 50, ends at the end of the fiscal year during which the 12th anniversary of that effective date occurs. 50. Unless a Party provides each of the other Parties, no less than fifteen months before the term of this Agreement, as extended from time to time under this paragraph, ends under subparagraph 49(b), with a notice to end this Agreement. the time at which the term of this Agreement ends under subparagraph 49(

b) will be extended by two years. 51. For greater certainty, paragraphs 49 and 50 are intended to result in the term of this Agreement continuing unless a Party provides notice under paragraph 50 to end this Agreement. SUBSEQUENT TAXATION AGREEMENT 52. At least one year before the end of the term of this Agreement, Canada, British Columbia and the Nisga'a Nation will begin negotiating the next taxation agreement. 53.

If the Parties do not reach a further taxation agreement by the end of the term of this Agreement, this Agreement will continue in effect for a period of two years from the end of the term of this Agreement while they attempt to reach the further taxation agreement. AMENDMENT AND REVIEW 54. Any amendment to this Agreement must be in writing and executed by all Parties. 12

NISGA'A NATION TAXATION AGREEMENT 55. The Parties will review this Agreement no later than seven years after the effective date, and may amend this Agreement if all Parties agree. 56. In addition to the review under paragraph 55, any Party may at any time request the other Parties to review this Agreement and to consider amendments to this Agreement, and the other Parties will not unreasonably withhold consent to the review. 57. For greater certainty, nothing in paragraph 55 or 56 requires any Party to agree to amend this Agreement. NO IMPLIED WAIVER 58.

No term or condition of this Agreement, or performance by a Party of a covenant under this Agreement, will be deemed to have been waived unless the waiver is in writing and signed by the Party or Parties giving the waiver. 59. No written waiver of a term or condition of this Agreement, of performance by a Party of a covenant under this Agreement, or of default by a Party of a covenant under this Agreement, will be deemed to be a waiver of any other covenant, term or condition, or of any subsequent default. FURTHER ASSURANCES 60.

The Parties will execute any other documents and do any other things that may be necessary to carry out the intent of this Agreement.

INTERPRETATION 61. In this Agreement: a. unless it is otherwise clear from the context, "including" means "including, but not limited to", and "includes" means "includes, but is not limited to"; b. headings are for convenience only, do not form a part of this Agreement and in no way define, limit, alter or enlarge the scope or meaning of any provision of this Agreement; c. a reference to a statute includes every amendment to it, every regulation made under it and any law enacted in substitution for it or in replacement of it; d. unless it is otherwise clear from the context, the use of the singular includes the plural, and the use of the plural includes the singular; and 13

NISGA'A NATION TAXATION AGREEMENT e. all accounting terms have the meanings assigned to them under generally accepted accounting principles. 62. This Agreement does not form part of the Nisga'a Treaty. 63. This Agreement is not intended to be a treaty or a land claims agreement, and is not intended to recognize or affirm aboriginal or treaty rights, within the meaning of sections 25 and 35 of the Constitution Act, 1982. TIME OF THE ESSENCE 64. Time is of the essence in this Agreement. SEVERABILITY 65.

If any part of this Agreement is declared or held invalid for any reason, the invalidity of that part will not affect the validity of the remainder of this Agreement, which will continue in full force and effect and be construed as if this Agreement had been executed without the invalid portion. ENUREMENT 66. This Agreement will enure to the benefit of and be binding upon the Parties and their respective successors. NO ASSIGNMENT 67. This Agreement may not be assigned, either in whole or in part, by any Party. NOTICES 68.

Unless otherwise provided, a notice, document, request, approval, authorization, consent or other communication (each a "communication") required or permitted to be given or made under this Agreement must be in writing and may be given or made in one or more of the following ways: a. delivered personally or by courier; b. transmitted by facsimile transmission; or c. mailed by prepaid registered post in Canada. 69. A communication will be considered to have been given or made, and received: •••

NISGA'A NATION TAXATION AGREEMENT a. if delivered personally or by courier, at the start of business on the next business day after the business day on which it was received by the addressee or a responsible representative of the addressee; b. if sent by facsimile transmission and if the sender receives confirmation of the transmission, at the start of business on the next business day on which it was transmitted; or c. if mailed by prepaid registered post in Canada, when the postal receipt is acknowledged by the addressee. 70.

A communication must be delivered, transmitted to the facsimile number or mailed to the address of the intended recipient set out below: For: Attention: Fax Number: For: Attention: Fax Number: For: Attention: Fax Number: Canada Minister of Finance House of Commons Confederation Building Ottawa, Ontario ICIA 0A6 (613) 992-4291 British Columbia Minister of Finance and Corporate Relations Parliament Buildings Victoria. British Columbia V8V 1X4 (250) 387-5594 Nisga'a Nation President P.O. Box 231 New Aiyansh, British Columbia VOJ 1A0 (250) 633-2367 71.

A Party may change its address or facsimile number by giving a notice of the change to the other Parties in the manner set out above. 15

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A ENTRE : SA MAJESTE LA REINE DU CHEF DU CANADA, representee par le ministre des Finances (0 Canada 0)

PARTIE DE PREMIERE PART SA MAJESTE LA REINE DU CHEF DE LA PROVINCE DE LA COLOMBIE-BRITANNIQUE, represent& par le ministre des Finances (o Colombie-Britannique

o) PARTIE DE DEUXIEME

PART La NATION NISA'A, represent& par le president (o Nation Nisga'a

o) PARTIE DE TROISIEME PART ATTENDU QUE

A) la Nation Nisga'a, le Canada et la Colombie-Britannique ont conclu un traite, appele Traite Nisga'a », qui prevoit qu'a la date d'entree en vigueur du traite, le Canada, la Colombie-Britannique et la Nation Nisga'a concluront un Accord de taxation; et

B) cet accord est l'Accord de taxation mentionne a l'enonce A. POUR CES MOTIFS, en consideration de ce qui precede et des engagements et ententes contenus aux presentes, les Parties conviennent de ce qui suit : ET : ET : 16

ACCORD DE TAXATION CONCERNANT LA NATION NISGA' A

DEFINITIONS 1. Sous reserve de l'article 7, les termes et les expressions qui ne sont pas &finis dans cet Accord mais qui sont definis dans le Traite Nisga'a ont les sens qui leur sont attribues dans le Traite Nisga'a. 2. Dans cet Accord : «

chapitre » s'entend d'un

chapitre du Traite Nisga'a. « date d'entree en vigueur o s'entend de Ia date a laquelle le Traite Nisga'a prend effet. «

Loi sur l'exportation et l' importation de biens culturels » s'entend de la

Loi sur l'exportation et !'importation de biens culturels, L.R.C. 1985 ch. C-51. «

Loi sur la tare d'accise » s'entend de Ia

Loi sur la tare d'accise, L.R.C. 1985 ch. E-15. « Mineral Land Tax Act » s'entend de Ia loi de la Colombie-Britannique intitulee Mineral Land Tax Act, RSBC 1996, ch. 290. « Mineral Tax Act » s'entend de la loi de Ia Colombie-Britannique intitulee Mineral Tar Act, RSBC 1996, ch. 291. « Mining Tax Act 0 s'entend de la loi de la Colombie-Britannique intitulee Mining Tax Act, RSBC 1996, ch. 295. « Motor Fuel Tax Act » s'entend de la loi de la Colombie-Britannique intitulee Motor Fuel Tax Act, RSBC 1996, ch. 317. « Parties o s'entend des parties a cet Accord, et «

Partie » s'entend de l'une d'elles. Petroleum and Natural Gas Act » s'entend de la loi de la Colombie-Britannique intitulee Petroleum and Natural Gas Act, RSBC 1996, ch. 361. « Property Transfer Tax Act » s'entend de Ia loi de Ia Colombie-Britannique intitulde Property Transfer Tax Act, RSBC 1996, ch. 378. « Social Service Tax Act » s'entend de Ia loi de la Colombie-Britannique intitulee Social Service Tax Act, RSBC 1996, ch. 431. « societe admissible o s'entend :

a) d'une societe dont les actions (sauf les actions conferant l'admissibilite a des postes d' administrateur) appartiennent a la Nation Nisga'a, a un village Nisga'a, a une fiducie de reglement Nisga'a, ou a toute combinaison de ces personnes ; ou 17

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A

b) d'une societe dont les actions (sauf les actions conferant l'admissibilite a des postes d'administrateur) appartiennent a : (

i) la Nation Nisga'a, a un village Nisga'a, ou a une fiducie de reglement Nisga'a ; (ii) une societe definie au present alinda ; ou (iii) toute combinaison des personnes mentionnees aux sous-alineas (

i) et (ii). « Traite Nisga'a o s'entend du traite conclu par le Canada, la Colombie-Britannique et la Nation Nisga'a et ses modifications successives, qui est un traite au sens des articles 25 et 35 de la Loi constitutionnelle de 1982. LOIS D'APPLICATION GENERALE 3. Rien dans cet Accord, ou dans toute loi du Canada ou de la Colombie-Britannique qui donne effet au Traite Nisga'a ou a cet Accord, ne restreint les droits de la Nation Nisga'a, d'un village Nisga'a ou d'une societe gouvernementale Nisga'a a tout avantage qu'il a en vertu d'une loi d'application generale. REPUTES ORGANISMES PUBLICS 4. Aux fins de l'alinda 149(1)

c) de la Loi de l'impot sur le revenu, la Nation Nisga'a et chaque village Nisga'a sont reputes etre des organismes publics remplissant une fonction gouvernementale au Canada. 5. Aux fins des alineas 149(1)

d) a 149(1)d.6) et des paragraphes 149(1.1) a (1.3) de la Loi de l'impot sur le revenu, la Nation Nisga'a et chaque village Nisga'a sont reputes etre des au Canada. REQUERANT 6. Dans cet Accord, « requerant » s'entend :

a) aux articles 9 a 13 : (

i) de la Nation Nisga'a ; (ii) d' un village Nisga'a ; ou (iii) d' une personne, autre qu'une institution financiere, qui est : (

A) une fiducie, un conseil, une commission, un tribunal ou un organisme similaire, qui est etabli par Ia Nation Nisga'a, par un village Nisga'a, ou par toute combinaison de Ia Nation Nisga'a ou de villages Nisga'a ; ou 18

ACCORD DE TAXATION CONCERNANT LA NATION NISGA' A (

B) une societe admissible constituee en vertu des lois federates ou provinciales ; et

b) aux articles 16 a 18, une personne qui serait mentionnee a l'alinea

a) s'il n'etait tenu compte de ('expression « autre qu'une institution financiere » au sous- alinea a)(iii). TAXE SUR LES PRODUITS ET SERVICES 7. Sous reserve des articles 8 a 10, les mots utilises dans l'article 6 et dans les articles 9 a 15 ont le meme sens que dans la

partie LX de la

Loi sur la taxe d'accise. 8. La definition de « gouvemement » au paragraphe 123(1) de la

Loi sur la taxe d'accise ne s'applique pas a cet Accord. 9. A l'article 12, « etablissement stable » d'un requerant s'entend :

a) d'une installation fixe d'affaires du requerant, y compris : (

i) un siege de direction, une succursale, un bureau, une usine, un atelier ou un autre lieu ; et (ii) une mine, un puits de parole ou de gaz, une carriere, une terre a bois ou tout autre lieu d'extraction d'une ressource naturelle ;

b) d'une installation fixe d'affaires d'une autre personne (autre qu'un courtier, un commissaire general ou autre mandataire independant qui agit dans le cours normal d'une entreprise ou toute personne etablie par le requerant) qui agit pour le compte du requerant ;

c) d'un endroit ou le requerant utilise des machines ou du materiel substantiels ; et

d) de tout immeuble appartenant au requerant ou fourni par celui-ci sur une base reguliere ou continue. 10. A ('article 11, « activite designee » d'un requerant s'entend :

a) d'une entreprise ou d'une autre activite dont le but principal est de fournir des biens ou des services aux citoyens a, a la Nation Nisga'a, a un village Nisga'a, a des societes admissibles, a des particuliers qui resident sur les Terres Nisga'a, ou a toute combinaison de ces personnes ; ou

b) toute autre entreprise ou activite que le Canada et la Nation Nisga'a ont convenu d'inclure en vertu de cet article. 19

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A 11. Un requerant qui acquiert ou importe un bien ou un service a regard duquel it paie la taxe en vertu du paragraphe 165(1) ou des articles 212 ou 218 de la

Loi sur la taxe d'accise a droit au remboursement de la

partie de la taxe qui n'est pas recouvrable au

titre de credit de taxe sur intrants en vertu de la

partie IX de cette loi et qui n'est pas par ailleurs recouvre en vertu de toute loi, si :

a) le bien ou service n'est pas acquis ou importe pour la consommation, l'utilisation ou la fourniture dans le cadre d'une entreprise ou d'une autre activite, autre qu'une activite designee, menee par le requerant en vue d'un profit ou d'un gain ;

b) le bien ou service est acquis ou importe pour Ia consommation, l'utilisation ou la fourniture dans le cadre de rexecution d'une fonction gouvernementale en vertu du Traite Nisga'a ou d'un accord subsequent entre le Canada et la Colombie- Britannique, ensemble ou separement, et la Nation Nisga'a ; et

c) le bien ou le service : (1) est une immobilisation du requerant acquise ou import& pour Ia consommation, l'utilisation ou la fourniture, en tout lieu, principalement dans le cadre de l'exploitation sur les Terres Nisga'a d'une entreprise ou d'une autre activite du requerant ; (ii) est un service a regard d'une immobilisation mentionnee au sous- alinea (

i) ou est un bien fourni de concert avec un service a regard d'une immobilisation mentionnee a ce sous-alinea ; ou (iii) dans le cas d'un bien ou d'un service qui n'est mentionne ni au sous- alinea (

i) ni au sous-alinea (ii), est acquis ou importe pour la consommation, l'utilisation ou Ia fourniture, en tout lieu, exclusivement dans le cadre de ('exploitation sur les Terres Nisga'a d'une entreprise ou d'une autre activite du requerant. 12. Aux fins de r alinea 1 lc), lorsque le requerant exploite une entreprise ou une autre activite en

partie sur des Terres Nisga'a et en

partie dans un ou plusieurs etablissements stables du requerant qui ne sont pas situes sur les Terres Nisga'a, ou par l'entremise d'un ou plusieurs de ces etablissements stables, le requerant est repute ne pas exploiter, sur les Terres Nisga'a, ('entreprise ou ractivite :

a) dans le cas d'une entreprise ou d'une activite qui comporte la fourniture d'un immeuble sur une base r4uliere ou continue au moyen d'une location a bail, d'une licence ou d'un arrangement semblable, si le bien n'est pas situe et n'est pas destine a etre situe sur les Terres Nisga'a ; et

b) dans tout autre cas, dans Ia mesure ou le requerant exploite l'entreprise ou r activite dans un ou plusieurs etablissements stables du requerant qui ne sont pas 20

ACCORD DE TAXATION CONCERNANT LA NATION NISQA'A situes sur les Terres Nisga'a, ou par l'entremise d'un ou plusieurs de ces etablissements stables. 13. Malgre ralinea 141.1(1)b), le paragraphe 200(3), l'article 1 de la

partie V.1 de l'annexe V et les articles 2 et 25 de la

partie VI de l'annexe V de la

Loi sur la taxe d'accise et ('article 3 de cet Accord, si un requerant effectue une fourniture par Ia vente d'un bien qui est une immobilisation du requerant et a regard duquel le requerant avait droit a un remboursement en vertu de l'article 11, la fourniture est reputee, aux fins de la

partie IX de cette loi, etre faite dans le cadre d'une activite commerciale du requerant. 14. Un remboursement de Ia taxe en vertu de l'article 11 ne sera pas paye a moins qu'une demande de remboursement ne soit produite aupres du ministre du Revenu national dans les quatre ans suivant le paiement de la taxe. 15. Les dispositions de la

partie IX de Ia

Loi sur la taxe d'accise s'appliquent, avec toute modification que les circonstances exigent, aux reclamations en vertu de ('article 11 et aux sommes payees ou payables au

titre de remboursement en vertu de cet article, comme si le remboursement prevu a cet

article etait un remboursement prevu a la

section VI de la

partie TAXE SUR LES SERVICES SOCIAUX ET TAXE SUR LE CARBURANT 16. Sous reserve des articles 17 a 20, le requerant a droit a un remboursement :

a) de Ia taxe, autre que la taxe sur l'achat d'alcool, payee par le requerant en vertu de Ia Social Service Tax Act ; ou

b) de la taxe payee par le requerant en vertu de la Motor Fuel Tax Act ; concernant un bien, un service ou du carburant :

c) acquis ou loud a bail en tout lieu ; ou

d) consommé ou utilise en tout lieu. 17. Un requerant a droit a un remboursement en vertu de Particle 16, dans la mesure ou Ia taxe n'est pas autrement recouvrable par le requerant en vertu de toute loi, si :

a) le bien, service ou carburant n'a pas ete acquis ou loud a bail a des fins de consommation ou d' utilisation dans le cadre d'une entreprise ou d'une autre activite a des fins de profit ou de gain ; et

b) la presque totalite du bien, du service ou du carburant est consommee ou utilisee relativement a rexecution d'une fonction gouvernementale, a r interieur des Terres Nisga'a, en vertu du Traite Nisga'a ou d'un accord subsequent entre le 21

ACCORD DE TAXATION CONCERNANT LA NATION NISaA'A Canada et la Colombie-Britannique, ensemble ou separement, et la Nation Nisga'a. 18. Un requerant doit payer une taxe, au moment d'un changement d'utilisation, tel qu'exige par la Social Service Tax Act, si :

a) le requerant a recu un remboursement en vertu de l'article 16 ; et

b) l'utilisation du bien ou des services a regard duquel le remboursement est fait a change pour une utilisation a regard de laquelle le requerant n'aurait pas droit a un remboursement en vertu de l'article 16. 19. La Social Service Tax Act, la Motor Fuel Tax Act et toute autre loi pertinente de la Colombie-Britannique s'appliquent aux articles 16 a 18 dans la mesure ou elles ne sont pas incompatibles avec ces articles. 20. Dans tous les cas, un remboursement effectue en vertu de l'article 16 est repute fait en vertu de la Social Service Tax Act ou de la Motor Fuel Tax Act, le cas echeant.

TAXE SUR LE TRANSFERT DE BIENS 21. Ni la Nation Nisga'a, ni un village Nisga'a ne sont assujettis a la taxe en vertu de la Property Transfer Tax Act concemant les Terres Nisga'a. 22. Nul citoyen Nisga'a n'est assujetti a la taxe en vertu de la Property Transfer Tax Act concemant les Terres Nisga'a tant que le d8cret de remise mentionne a ('article 7 du

chapitre intitule « Taxation » est en vigueur. CAPITAL NISGA'A 23. Un transfert de capital Nisga'a, autre que des montants en especes, entre deux ou plusieurs des entites suivantes, a savoir la Nation Nisga'a, des villages Nisga'a et des societes gouvernementales Nisga'a, n'est pas taxable. TAXES SUR LES RESSOURCES MINERALES 24. Sous reserve de ('article 25, nulle personne n'est assujettie aux taxes en vertu de :

a) la Mineral Tax Act sur les revenus tires de l'exploitation d'une mine ;

b) la Mining Tax Act sur les revenus tires d'exploitations minieres ; ou

c) la Petroleum and Natural Gas Act sur les recettes ; 22

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A en ce qui conceme, et seulement dans la mesure de cet interet, l'interet en fief simple de la Nation Nisga'a, d'un village Nisga'a ou d'une societe gouvemementale Nisga'a dans une ressource minerale sur les Terres Nisga'a ou dans leur sous-sol, ou en ce qui concerne les mineraux extraits de la ressource.

L'article 24 s'applique a une personne seulement dans la mesure ou :

a) le revenu est tire d'une exploitation, mentionnee aux alineas 24a) et b), qui est exercee sur les Terres Nisga'a ou dans leur sous-sol ; ou

b) les recettes mentionnees a l'alinea 24c) sont tirees du petrole ou du gaz nature) extrait des Terres Nisga'a. 26. Ni la Nation Nisga'a, ni un village Nisga'a ni une societe gouvemementale Nisga'a ne sont assujettis a la taxe en vertu de la Mineral Land Tax Act sur les Terres Nisga'a. TAXATION FONCIERE 27.

Aucun domaine ou interet de la Nation Nisga'a, d'un village Nisga'a ou d'une societe gouvemementale Nisga'a dans les Terres Nisga'a en fief simple n'est assujetti a la taxation fonciere, sauf un domaine ou interet dans une parcelle de Terres Nisga'a en fief simple lorsque la parcelle est utilisee a une fin autre que des activites gouvernementales ou des activites sans but lucratif. FIDUCIE DE REGLEMENT NISA'A 28. Une fiducie de reglement Nisga'a, les droits de beneficiaire dans une fiducie de reglement Nisga'a et toute somme versee au

titre de contribution a une fiducie de reglement Nisga'a ou distribuee comme revenu ou capital par une fiducie de reglement Nisga'a a un beneficiaire ne sont pas taxables, sauf que :

a) tout montant de revenu ou de capital distribue au cours d'une armee donnee a un beneficiaire qui est un citoyen Nisga'a est repute etre, aux fins du paragraphe 104(13) de la Loi de l'impot sur le revenu, un revenu de la fiducie qui etait payable au beneficiaire dans l'annee dorm& ;

b) une fiducie de reglement Nisga'a est assujettie aux dispositions de la

partie XI de la Loi de l'impot sur le revenu, comme s'il etait prevu que cette

partie s'appliquait expressement aux fiducies de reglement Nisga'a et qu'elle etait modifiee avec les adaptations necessaires pour tenir compte des investissements decrits a l'alinea

c) de la definition de 0 fiducie de reglement Nisga'a »;

c) une fiducie de reglement Nisga'a est assujettie a l'impot en vertu des parties I et I.1 de la Loi de l'impot sur le revenu et, a cette fin, son revenu imposable correspond au total des montants suivants :

ACCORD DE TAXATION CONCERNANT LA NATION NISQA' A (

i) le montant de tout revenu tire durant annee d'un bien, y compris tout gain en capital imposable provenant de la disposition de ce bien, qui n'est pas un placement admissible pour Ia fiducie ou qui n'est pas acquis dans le cadre d'une activite permise de la fiducie ; et (ii) toute somme versee au

titre de contribution a la fiducie qui n'est pas permise en vertu des modalites de Ia fiducie ; et

d) une taxe sur les produits et services ou des taxes semblables peuvent etre imposees sur les produits ou services consommes par la fiducie ou le fiduciaire. 29.

Si le ministre du Revenu national est d'avis qu'une fiducie de reglement Nisga'a ne satisfait pas aux dispositions de l'article 28 ou a toute modalite &lone& dans la definition de fiducie de reglement Nisga'a, le ministre peut en aviser la fiducie par ecrit et, si la fiducie ne remedie pas au defaut, a la satisfaction du ministre, dans les cent jours suivant ('envoi par courrier recommande de l'avis, le ministre peut Iui revoquer le statut de fiducie de reglement Nisga'a, sous reserve du meme droit d'appel qui s'applique a la revocation de l'enregistrement d'un organisme de bienfaisance enregistre en vertu de la Loi de l'impot sur le revenu. 30.

Si le ministre du Revenu national revoque le statut d'une fiducie de reglement Nisga'a, r armee d'imposition de la fiducie qui aurait autrement compris le moment de la revocation est reputee se terminer immediatement avant le moment de Ia revocation, et la fiducie de reglement Nisga'a est reputee avoir dispose de tous ses actifs immediatement avant ce moment pour un produit egal a leur juste valeur marchande et d'avoir acquis de nouveau ces actifs a ce moment a un cout egal a cette juste valeur marchande, et aux fins du calcul du revenu imposable de la fiducie vise a ralinea 28c), un montant egal au montant par lequel leur juste valeur marchande &passe le coot indique des actifs de la fiducie est reputee etre un gain en capital provenant de la disposition d'un bien qui n'est pas un bien admissible pour la fiducie. 31.

Aux fins de l'article 28, la distribution, par une fiducie de reglement Nisga'a, de tout montant a un beneficiaire de la fiducie a regard des droits du beneficiaire dans la fiducie ne constitue pas un motif de revocation du statut de fiducie de reglement Nisga'a. 32. La regle d' interdiction de perpetuites ne s'applique pas a une fiducie de reglement Nisga'a. TAXES PROVINCIALES FUTURES 33.

Si la Colombie-Britannique introduit une taxe et qu'il est raisonnable de prevoir que la taxe assujettira la Nation Nisga'a ou un village Nisga'a a une taxe dans le cadre de l'exercice d'une fonction gouvemementale en vertu du Traite Nisga'a ou d'un accord subsequent entre le Canada et la Colombie-Britannique, ensemble ou separement, et la Nation Nisga'a, sur les Terres Nisga'a, alors, a la demande de la Nation Nisga'a, la 24

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A Colombie-Britannique consulte la Nation Nisga'a concernant ('impact possible de la taxe sur la Nation Nisga'a ou un village Nisga'a. DONS A LA NATION NISGA'A OU A UN VILLAGE NISGA'A 34. Une personne qui fait un don a la Nation Nisga'a ou a un village Nisga'a a le meme traitement fiscal concernant le don que si elle avait fait le don a un organisme de bienfaisance enregistre en vertu de la Loi de l'impot sur le revenu. 35.

Il est entendu que ('article 34 n'exige pas que la Nation Nisga'a ou qu'un village Nisga'a se conforme aux exigences de la Loi de l'impot sur le revenu relatives aux organismes de bienfaisance enregistres en vertu de cette loi.

LOI SUR L'EXPORTATION ET L'IMPORTATION DE BIENS CULTURELS 36. La Nation Nisga' a est trait& comme une administration designee en vertu du paragraphe 32(2) de la

Loi sur l'exportation et l'importation de biens culturels et tout organisme sans but lucratif etabli par la Nation Nisga'a pour recevoir, entreposer et exposer des artefacts culturels est traite comme un etablissement designe en vertu de ce paragraphe de la loi, si la Nation Nisga'a ou l'organisme sans but lucratif, selon le cas :

a) a une installation qui satisfait aux exigences environnementales du Programme des biens culturels mobiliers concernant l'entreposage a long terme et la presentation des artefacts culturels ; ou

b) a ('usage, en vertu d'un accord a long terme avec une administration ou un etablissement designe en vertu du paragraphe 32(2) de la

Loi sur l'exportation et l'importation de biens culturels, d'une installation qui satisfait aux exigences environnementales du Programme des biens culturels mobiliers ; et utilise l'une ou l'autre des installations pour entreposer ou pour exposer des artefacts culturels, incluant tout artefact culturel qui lui est donne et qui est compris dans le « total des dons de biens culturels » au sens du paragraphe 118.1(1) de la Loi de l'impot sur le revenu aux fins du calcul de l'impot payable du donateur. AUTRES ACCORDS SUR LES REVENDICATIONS TERRITORIALES 37.

Si, dans les 15 ans qui suivent la date d'entree en vigueur, le Canada ou la Colombie- Britannique edicte une legislation donnant effet a un autre accord sur des revendications territoriales applicable dans le nord-ouest de la Colombie-Britannique qui prevoit que toutes les terres mises de cote comme reserves indiennes d'une bande indienne dont les membres etaient representes par une

partie a l'accord cessent d'être des reserves et prevoit dans l'accord sur des revendications territoriales ou dans un autre accord mentionne dans l'accord sur des revendications territoriales : 25

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A

a) des pouvoirs de taxation dont ne disposent pas le gouvernement Nisga'a Lisims ou les gouvemements de village Nisga'a ; ou

b) des exemptions de taxes dont ne disposent pas la Nation Nisga'a ou les villages Nisga'a ; le Canada et la Colombie-Britannique, a la demande de la Nation Nisga'a, negocient et tentent de parvenir a un accord avec la Nation Nisga'a afin d'apporter des ajustements appropries aux pouvoirs de taxation du gouvernement Nisga'a Lisims et des gouvemements de village Nisga'a et aux exemptions de taxes dont disposent la Nation Nisga'a et les villages Nisga'a, en tenant compte des circonstances particulieres de l'autre accord sur des revendications territoriales. TRAITES INTERNATIONAUX 38.

La legislation edict& par le gouvernement Nisga'a Lisims ou par un gouvernement de village Nisga'a sont assujetties aux obligations pertinentes auxquelles le Canada s'est engage en vertu de traites internationaux, de conventions ou de protocoles en matiere fiscale. LEGISLATION 39. Le Canada et la Colombie-Britannique recommandent au Parlement et a la Legislature, respectivement, de donner effet aux dispositions de cet Accord en vertu de la loi federale et provinciale. 40. Apres la date d'entree en vigueur, le Canada et Ia Colombie-Britannique consultent Ia Nation Nisga'a :

a) au cours de la redaction de toute loi visant a donner effet aux dispositions du

chapitre intituld «Taxation 0, notamment les articles 5 a 12 ; et

b) au cours de Ia redaction de toute loi visant a donner effet aux dispositions de cet Accord. REGLEMENT DES DIFFERENDS 41. Les Parties souhaitent et s'attendent a ce que Ia plupart des desaccords se reglent par des discussions informelles entre ou parmi les Parties sans qu'il soit necessaire d'invoquer une procedure de reglement des differends. 42. Dans l'eventualite d'un differend entre les Parties decoulant de cet Accord, les Parties au differend utilisent la procedure enoncee aux articles 43 a 48 avant de se prevaloir de tout autre recours. 26

ACCORD DE TAXATION CONCERNANT LA NATION NISaA'A 43. Dans les 30 jours qui suivent Ia reception par une

Partie de l'avis ecrit d'une autre

Partie d'un differend en vertu de cet Accord, les Parties au differend se reunissent et tentent de le regler de bonne foi. 44. Si, dans les 60 jours qui suivent Ia reunion mentionnee a ('article 43, les Parties au differend ne le reglent pas, elles soumettent le differend a Ia mediation et partagent a parts egales les coats de la mediation. 45.

Les Parties au differend choisissent conjointement un mediateur; toutefois, si apres 30 jours elles sont incapables de s'entendre sur le choix d'un mediateur, la question du choix d'un mediateur sera soumise a un juge de Ia Cour supreme de la Colombie- Britannique a qui it sera dernande de choisir un mediateur. 46. Les Parties au differend participent de bonne foi a Ia mediation pour une periode de 60 jours. 47. Les Parties au differend peuvent convenir de delais autres que ceux mentionnes aux articles 43 a 46. 48.

Malgre les articles 42 a 47, les Parties au differend peuvent convenir de recourir a toute disposition du

chapitre intitule << Reglement des differends >>. DUREE DE CET ACCORD 49. La duree de cet Accord :

a) commence a Ia date d'entree en vigueur ; et

b) sous reserve de l'article 50, se termine a la fin de I'exercice durant lequel survient le 12` anniversaire de Ia date d'entree en vigueur. 50. A moins qu'une

Partie ne donne a chacune des autres Parties, au moins quinze mois avant que Ia duree de cet Accord, tel qu'elle est prolong& de temps a autre en vertu de cet article, se termine en vertu du paragraphe 49b), un avis aux fins de resilier cet Accord, le moment auquel la duree de cet Accord se termine en vertu du paragraphe 49b) est prolonge de deux ans. 51. II est entendu que les articles 49 et 50 ont pour but la continuation de cet Accord, a moins qu'une

Partie ne donne un avis en vertu de l'article 50 en vue de le resi her. ACCORD DE TAXATION SUBSEQUENT 52. Au moins un an avant la fin de la duree de cet Accord, le Canada, Ia Colombie- Britannique et la Nation Nisga'a commencent a negocier le prochain accord de taxation. 27

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A 53. Si les Parties ne parviennent pas a conclure un accord de taxation subsequent avant la fin de la duree du present Accord, le present Accord continue d'être en vigueur pendant deux (2) ans a compter de la date de la fin de la duree du present Accord pendant que les Parties tentent de parvenir a un accord de taxation subsequent. MODIFICATION ET REVUE 54. Toute modification de cet Accord est faite par ecrit et sign& par toutes les Parties. 55.

Les Parties revoient cet Accord au plus tard sept ans apres la date d'entree en vigueur et elles peuvent le modifier si toutes les Parties en conviennent. 56. En plus de la revue en vertu de ('article 55, toute

Partie peut en tout temps demander aux autres Parties de revoir cet Accord et de considerer des modifications a cet Accord, et les autres Parties ne peuvent d'une maniere deraisonnable refuser leur consentement a la revue. 57. Il est entendu que les articles 55 et 56 n'obligent pas une

Partie a consentir a modifier cet Accord. AUCUNE RENONCIATION IMPLICITE 58. Aucune modalite ou condition de cet Accord, ni ('execution par une

Partie d'un engagement en vertu de cet Accord, ne sont reputees avoir fait ('objet d'une renonciation A moins que la renonciation ne soit &rite et sign& par la ou les Parties donnant la renonciation. 59. Aucune renonciation &rite a une modalite ou a une condition de cet Accord, a ('execution par une

Partie d'un engagement en vertu de cet Accord ou a un defaut par une

Partie d'executer un engagement en vertu de cet Accord, ne sont reputees etre une renonciation a tout autre engagement ou modalite ou condition ou a tout autre defaut subsequent. PROMESSES ADDITIONNELLES 60. Les Parties signent tout autre document et font toute autre chose qui peuvent etre necessaires a la realisation de l'intention de cet Accord.

INTERPRETATION 61. Dans cet Accord :

a) a moins que le contexte n'indique clairement autre chose, «notamment» signifie « notamment, mais non limitativement » et « y compris 0, et le verbe 28

ACCORD DE TAXATION CONCERNANT LA NATION NISGA'A comprendre » signifie « y compris, mais non limitativement 0 et 0 comprendre, mais non limitativement » ;

b) les titres sont pour la seule commodite du lecteur, ne font pas

partie de cet Accord et ne definissent, limitent, modifient ou elargissent d'aucune maniere la portee ou le sens de toute disposition de cet Accord ;

c) le renvoi a une loi comprend toutes ses modifications, tous les reglements pris en vertu de cette loi ou toute loi edict& pour se substituer a elle ou la remplacer ;

d) a moins que le contexte n'indique clairement autre chose, l'emploi du singulier comprend le pluriel et l'emploi du pluriel comprend le singulier ; et

e) tous les termes de comptabilite ont le sens qui leur est attribue par les principes comptables generalement reconnus. 62. Cet Accord ne fait pas

partie du Traite Nisga'a. 63. Cet Accord ne se veut ni un iraite ni un accord sur des revendications territoriales, et it n'a pas pour but de reconnaitre ou de confirmer des droits ancestraux ou des droits issus de traites, au sens des articles 25 et 35 de la Loi constitutionnelle de 1982. DELAIS DE RIGUEUR 64. Les delais sont de rigueur dans cet Accord. DIVISIBILITE 65. Si une

partie de cet Accord est declaree ou jugee nulle, pour quelque raison que ce soit, la nullite de cette

partie n'affecte pas la validite du reste de cet Accord, qui demeure pleinement en vigueur et qui est interprete comme si cet Accord avait ete signe sans la

partie nulle. APPLICATION 66. Cet Accord s'applique au benefice des Parties et de leurs successeurs respectifs et lie les Parties et leurs successeurs respectifs. INTERDICTION DE CESSION 67. Cet Accord ne peut etre cede, en totalite ou en partie, par l'une des Parties. 29

ACCORD DE TAXATION CONCERNANT LA NATION NISQA'A AVIS 68. Sauf disposition contraire, un avis, document, demande, approbation, autorisation, consentement ou autre communication (chacun etant une « communication ») qui doit ou peut etre dorm& ou faite en vertu de cet Accord doit etre ecrit et peut etre donne ou fait d' une ou plusieurs des fawns suivantes :

a) livraison en personne ou par messager ;

b) transmission par telecopieur ; ou

c) mise a la poste par courrier recommande affranchi au Canada. 69. Une communication est consider& avoir ete dorm& ou faite, et revue :

a) si elle est livree en personne ou par messager, au debut des heures d'affaires du jour ouvrable qui suit le jour ouvrable oil elle a ete revue par le destinataire ou par un representant responsable du destinataire ;

b) si elle est envoy& par telecopieur et si l'expediteur recoit une confirmation de la transmission, au debut des heures d'affaires du jour ouvrable suivant le jour ou elle a ete transmise ; ou

c) si elle est post& par courrier recommande affranchi au Canada, lorsque le recepisse postal est signe par le destinataire. 70. Une communication doit etre livree, transmise au numero de telecopieur ou post& a l'adresse du destinataire vise &once ci-apres : destinataire : Competence de : Numero de telecopieur : destinataire : Competence de : Numero de telecopieur : le Canada Ministre des Finances Chambre des communes Piece 583, Edifice de Ia Confederation Ottawa (Ontario) K 1 A 0A6 (613) 992-4291 Ia Colombie-Britannique le ministre des Finances et des Relations avec les societes Edifice du Parlement Victoria (Colombie-Britannique) V8V 1X4 (250) 387-5594 30

ACCORD DE TAXATION CONCERNANT LA NATION NISGA' A destinataire : Nation Nisga'a Competence de : President C.P. 231 New Aiyansh (Colombie-Britannique) VOJ 1A0 Numero de telecopieur : (250) 633-2367 71. Une

Partie peut changer son adresse ou son numero de telecopieur en donnant un avis du changement aux autres Parties de la fawn &ion& ci-haut. 31

ACCORD DE TAXATION CONCERNANT LA NATION NISGA' A THIS AGREEMENT HAS BEEN EXECUTED as of the day and year first above written/CET ACCORD A ETE SIGNE le jour et l'annee ecrits en premier lieu ci -haut.

EXECUTED in the Presence of/SIGNE en presence de: HER MAJESTY THE QUEEN IN RIGHT OF CANADA as represented by the Minister of Finance/SA MAJESTE LA REINE DU CHEF DU CANADA, representee par le ministre des Finances As to the signature of the Minister of Finance/ temoin de la signature du ministre des Finances Minister of Finance/Ministre des Finances EXECUTED in the Presence of/SIGNE en presence de: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA as represented by the Minister of Finance and Corporate Relations/SA MAJESTE LA REINE DU CHEF DE LA PROVINCE DE LA COLOMBIE- BRITANNIQUE, representee par le ministre des Finances et des Relations avec les societes As to the signature of the Minister of Finance and Corporate Relations/temoin de Ia signature du ministre des Finances et des Relations avec les societes Minister of Finance and Corporate Relations/Ministre des Finances et des Relations avec les societes EXECUTED in the Presence of/SIGNE en NISGA'A NATION as represented by the President presence de: /NATION NISGA'A, representee par le president As to the signature of the President/temoin de President/President Ia signature du president 32

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Canada British Columbia Nisga'a Nation

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT THIS AGREEMENT made the day of , 2000. BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Indian Affairs and Northern Development ("Canada") OF THE FIRST PART AND: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, as represented by the Minister of Aboriginal Affairs ("British Columbia") OF THE SECOND PART AND: NISGA'A NATION, as represented by the President (the "Nisga'a Nation") OF THE THIRD PART

WHEREAS: A. The Nisga'a Nation, Canada and British Columbia have entered into the Nisga'a Final Agreement which provides that every 10 years, or at other intervals if the Parties agree, the Parties will negotiate and attempt to reach agreement on an own source revenue agreement under which Nisga'a Nation own source revenue capacity, and the manner and extent to which that capacity will be taken into account under fiscal financing agreements, will be determined; and B. The Parties have negotiated this Agreement as an own source revenue agreement in accordance with the Nisga'a Final Agreement. 1

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT

NOW THEREFORE in consideration of the premises and the covenants and agreements set out below, the Parties agree as follows:

DEFINITIONS 1. Words and expressions not defined in this Agreement but defined in the Nisga'a Final Agreement have the meanings ascribed to them in the Nisga'a Final Agreement. In this Agreement, unless the context requires otherwise: "Chapter" means the

Chapter of the Nisga'a Final Agreement; "charge or fee" means a charge or fee, other than a Nisga'a tax, that is: a. levied in connection with a specific service or activity; b. similar to a charge or fee generally levied in British Columbia in similar circumstances by Canada, British Columbia or a local authority in British Columbia; and c. levied in respect of an agreed-upon program or service that is funded under a fiscal financing agreement and that is delivered by the Nisga'a Nation or another person under an arrangement with the Nisga'a Nation; and, for greater certainty, includes: d. charges in respect of government health programs or services including health insurance or co-insurance premiums; e. court fees, moorage fees, recreation fees, park utilization fees, building permit fees, business licence fees, marriage licence fees and timber mark registration fees; f. fees charged for permission to perform activities such as hunting, fishing and shooting. providing entertainment or gambling facilities, selling alcohol or tobacco and granting permission to own an animal; and g. fines and penalties not relating to tax offences; 2

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT but does not include: h. charges or fees in respect of an education program or service including tuition; r. charges or fees that have been taken into account under a fiscal financing agreement in determining the level of funding for the program or service in respect of which it is levied; or charges or fees in respect of a program or service where the Nisga'a Nation and the other Party or Parties providing funding to the Nisga'a Nation to enable provision of that program or service agree that the funding is provided on the basis that 100% of any charge or fee levied will be applied to the cost of the program or service; "commercial and investment activities" means: a. an undertaking for the purpose of gaining or producing income from a business or property including a natural resource; b. an adventure or concern in the nature of trade; or c. a disposition of a capital asset, other than Nisga'a Lands or Nisga'a Fee Simple Lands, held or used primarily for the purpose of gaining or producing income from a business or property; "effective date" means the date upon which the Nisga'a Final Agreement takes effect; "fiscal financing agreement" means a fiscal financing agreement within the meaning of that term in the Fiscal Relations Chapter; "fiscal year" means the period that commences on April P' of a year and ends on March 31' of the next year, or another period if the Parties agree by amending this Agreement; "generally accepted accounting principles" means the accounting principles generally accepted in Canada from time to time and if the handbook published by the Canadian Institute of Chartered Accountants or its successor includes a relevant statement of a principle or an accounting guideline, that statement will be considered conclusively to be an accounting principle or guideline generally accepted in Canada; "Lisims Fisheries Conservation Trust" means the trust that Canada and the Nisga'a Nation 3

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT have agreed to establish under paragraph 96 of the Fisheries Chapter; "Nisga'a Nation OSRC annual report" means the report of the Nisga'a Nation own source revenue capacity for a fiscal year prepared under paragraph 23; "Nisga'a tax" means: a. a tax imposed under a law made by Nisga'a Government in respect of direct taxation of: i. Nisga' a citizens under paragraph 1 of the Taxation Chapter; or ii. persons other than Nisga'a citizens under authority delegated by Canada or British Columbia under an agreement made under subparagraph 3(

a) of the Taxation

Chapter or under another agreement with the Nisga'a Nation; and b. a fine or penalty, or interest on payments overdue, paid to the Nisga'a Nation or a Nisga'a Village in respect of a tax referred to in subparagraph (a); "Nisga'a Final Agreement" means the Nisga'a Final Agreement signed on behalf of the Nisga'a Nation and Her Majesty in right of British Columbia on April 27, 1999, and Her Majesty in right of Canada on May 4, 1999, and includes any amendments made to that Agreement from time to time in accordance with its provisions; "other Nisga'a revenues" means the revenues of the Nisga'a Nation, a Nisga'a Village, a Nisga'a government corporation, a Nisga'a exempt corporation or a corporation without share capital established and operated for the benefit of the Nisga'a Nation or a Nisga'a Village, or any combination of them, other than revenue in respect of: a. a charge or fee: b. items referred to in subparagraph (h), (

i) or (

j) in the definition of charge or fee; c. a commercial or investment activity; d. a Nisga'a tax; or e. a Nisga'a settlement trust; 4

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT "Parties" means the parties to this Agreement and "Party" means any of them; "Taxation Agreement" means a Taxation Agreement within the meaning of that term in the Taxation Chapter; "Tripartite Finance Committee" means the Tripartite Finance Committee established under this Agreement. 3. The categories charge or fee, commercial and investment activities, Nisga'a tax and other Nisga'a revenues are mutually exclusive categories and, for greater certainty, a revenue allocated to one category cannot be allocated to another. 4.

If a provision of this Agreement applies in respect of a Nisga'a exempt corporation, the own source revenue capacity that results: a. will be reduced proportionately to fully account for the direct or indirect ownership interests in the corporation of persons other than the Nisga'a Nation, the Nisga'a Villages, Nisga'a government corporations, and Nisga'a settlement trusts; and b. if the Nisga'a Nation or a Nisga'a Village, or any combination of them, cannot cause a distribution by the corporation, will be taken into account only at the time, and to the extent, that a distribution is made to the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation.

NISGA'A NATION OWN SOURCE REVENUE CAPACITY 5. Nisga'a Nation own source revenue capacity for a fiscal year is the specified percentage of the aggregate of the own source revenue capacities for the fiscal year in respect of commercial and investment activities, Nisga'a taxes, Nisga'a settlement trusts, charges and fees, and other Nisga'a revenues, as determined in accordance with this Agreement. 6.

In paragraph 5, "specified percentage" is 0% for each of the first two fiscal years commencing on or after the effective date, 5% for each of the third and fourth fiscal years, 10% for the fifth fiscal year, 15% for the sixth fiscal year, 20% for the seventh fiscal year, 30% for the eighth fiscal year, 40% for the ninth fiscal year, 55% for the tenth fiscal year, 70% for the eleventh fiscal year, 85% for the twelfth fiscal year, and 100% for the thirteenth and subsequent fiscal years. 5

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT COMMERCIAL AND INVESTMENT ACTIVITIES 7.

Subject to paragraphs 4 and 19, the own source revenue capacity for a fiscal year in respect of commercial and investment activities is the aggregate of amounts, each of which is equal to the income tax, corporation capital tax or other tax (other than a tax referred to in paragraphs 24 and 26 of the Taxation Agreement) that would be payable for the fiscal year to a government in Canada in respect of the commercial and investment activities by the Nisga'a Nation, a Nisga'a Village, a Nisga'a government corporation, a Nisga'a exempt corporation, or a corporation without share capital established and operated for the benefit of the Nisga'a Nation or a Nisga'a Village, or any combination of them, as the case may be, if each were not exempt from the income tax, corporation capital tax or other tax, under laws of general application, and if the assumptions in paragraphs 8 to 11 applied. 8.

For the purposes of paragraph 7, the Nisga'a Nation and each Nisga'a Village will be assumed to be: a. each a private corporation incorporated in Canada on the effective date, all of the shares of which are owned by one or more individuals resident in Canada; and b. unrelated to, and dealing at arm's length with, each other. 9.

The taxes referred to in paragraph 7 will be determined on the assumption that each entity referred to in paragraph 7: a. had a fiscal period coincident with the fiscal year; b. did not carry on any activity other than its commercial and investment activities; c. did not own any property, except to the extent that the property was employed by it in a commercial or investment activity; and d. was not allowed any deduction in determining its income or taxable income for: any amount, to the extent that it reasonably could be considered to be an expenditure in respect of: A. a program or service for which funding has been provided to the Nisga'a Nation under a fiscal financing agreement; or 6

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT B. a management, enhancement or rehabilitation activity in respect of a natural resource, other than a forestry resource, that is reasonably comparable in nature to an activity carried on by another government in Canada in respect of the management, enhancement or rehabilitation of a similar natural resource; or ii. a gift made to a person that provides goods or services primarily to Nisga'a citizens; and on the assumption that the Nisga'a Nation and each Nisga'a Village was allowed a deduction in determining the amount subject to corporation capital tax for the carrying value, determined in accordance with generally accepted accounting principles, of any estate or interest it held in Nisga'a Lands on which there were no improvements or on which there was a designated improvement. 10.

In determining the own source revenue capacity in respect of a commercial or investment activity that is the exploitation of an interest in a forest resource on Nisga'a Lands or Nisga'a Fee Simple Lands: a. for purposes of determining any capital cost allowance in respect of that interest that would be allowable under paragraph 20(1)(

a) of the Income Tax Act and paragraph 1 100(1)(

e) of the regulations to that Act, and any recaptured depreciation under subsection 13(1) of the Income Tax Act, that interest will be deemed to have been acquired at the later of: i. the effective date; and ii. the date, if any, the interest was last acquired by the entity from a person (other than the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation) with whom the entity was dealing at arm's length; at a cost equal to: iii. the fair market value of that interest on the effective date, where subparagraph (

i) applies; or iv. the consideration given for the interest on the date referred to in subparagraph (ii), where subparagraph (ii) applies; and b. no deduction will be made by the entity in respect of an outlay or expenditure in 7

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT relation to the management or development of the forest resource, except to the extent that the outlay or expenditure was made or incurred for the purpose of earning income from the forest resource and is reasonable in the circumstances. 11. In determining the own source revenue capacity in respect of a commercial and investment activity that is the exploitation of an interest in a mineral resource or natural accumulation of petroleum or natural gas, the Income Tax Act will be read without reference to paragraphs 12(1)(o), 12(1)(z.5), 18(1)(

m) and 20(1)(v.1), and subsections 69(6) and 69(7) thereof. NISGA'A TAXES 12. Subject to paragraph 19, the own source revenue capacity for a fiscal year in respect of Nisga'a taxes is the sum of all amounts, each of which is the amount determined in respect of each Nisga'a tax in accordance with subparagraph 16(

c) of the Fiscal Relations Chapter, except that in applying that subparagraph: a. the phrase "the amount by which" in subparagraph I6(c)(ii)(

A) will be read as "50% of the amount by which"; b. the phrase "exceed the amount, if any, included" in subparagraph 16(c)(ii)(

A) will be read as "exceed the amount of tax room, if any, referred to"; c. the phrase "exceeds the amount included" in subparagraph 16(c)(ii)(

B) will be read as "exceeds the amount of tax room, if any, referred to"; and d. the reasonable costs, if any, of developing and administering the tax system in respect of the tax and of collecting the tax under subparagraph 16(c)(

i) or l6(c)(ii)(B), will be taken into account in determining the own source revenue capacity. NISGA'A SETTLEMENT TRUSTS 13. Subject to subparagraph 19(c), own source revenue capacity for a fiscal year in respect of Nisga'a settlement trusts is the sum of the amounts determined by multiplying the taxable income of each Nisga'a settlement trust for its taxation year ended in the fiscal year by the composite tax rate for the fiscal year. 14. In paragraph 13, "composite tax rate" is intended to be approximately equal to the net change in the sum of all income taxes, transaction taxes, and refundable tax credits that 8

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT would have accrued to a government in Canada from all Nisga'a citizens as beneficiaries of the trust if, under the terms of each Nisga'a settlement trust, an amount equal to the taxable income of the trust for its taxation year ended in the fiscal year had been made payable in that taxation year in equal shares to those Nisga'a citizens, and: a. is 18.2% for the term of the first two fiscal financing agreements, as calculated in

Schedule A; and b. will be determined for each subsequent fiscal financing agreement according to the method set out in that

Schedule A. 15. In paragraphs 13 and 14, "taxable income" and "taxation year" have the same meanings as in the Income Tax Act. CHARGES AND FEES 16.

Subject to paragraph 19, own source revenue capacity for a fiscal year in respect of charges or fees is the amount determined by applying the inclusion rate to the aggregate of amounts, each of which is the amount by which the receipts of the Nisga'a Nation, a Nisga'a Village, a Nisga'a government corporation or a Nisga'a exempt corporation, in the fiscal year in respect of a charge or fee exceed the reasonably deductible costs, including reasonable allowances for depreciation and amortization, that are incurred in the fiscal year for the purposes of levying, and that would not have been incurred but for the imposition of, that charge or fee. 17.

In paragraph 16. "inclusion rate" is 46.0%. OTHER NISGA'A REVENUES 18. Subject to paragraph 19, own source revenue capacity in respect of other Nisga'a revenues is the own source revenue capacity that would be determined in respect of the revenue if it were a charge or fee. AMOUNTS NOT INCLUDED 19.

Notwithstanding any other provision of this Agreement, Nisga'a Nation own source revenue capacity for a fiscal year does not include any amount in respect of: a. proceeds that are received or become receivable in a fiscal year from the sale of Nisga'a Lands or Nisga'a Fee Simple I ands, except to the extent that the proceeds 9

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT represent revenues received in the course of: i. leasing or licensing the lands; or ii. taking production from the lands or from a resource on the lands, by the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation; or iii. reasonably can be considered to represent a recapture of depletion or depreciation deducted in the computation of own source revenue capacity for the fiscal year or any preceding fiscal year; b. any amount referred to in subparagraphs 18(

b) to (

f) of the Fiscal Relations Chapter; c. for the first 12 calendar years commencing on or after the effective date, the income or capital gains of a Nisga'a settlement trust; d. a tax payable by a Nisga'a citizen to the Nisga'a Nation or a Nisga'a Village during the period that ends on the first day of the first month that starts on or after the eighth anniversary of the effective date; e. a tax, other than a transaction tax, payable by a Nisga'a citizen to the Nisga'a Nation or a Nisga'a Village during the period that starts at the end of the period described in subparagraph (

d) and ends on the first day of the first calendar year that starts on or after the twelfth anniversary of the effective date; f. any amount payable to the Nisga'a Nation under a fiscal financing agreement, fiscal contribution agreement, or any bilateral agreement between the Nisga'a Nation or a Nisga'a Village, and Canada or British Columbia in respect of a program or service of the Nisga'a Nation or Nisga'a Village; g. any amount paid Or alliected by the Nisga'a Nation, a Nisga'a Village, a Nisga'a settlement trust, or a Nisga'a government corporation, under a law made under paragraph 21 of the Fiscal Relations Chapter; h. a gift to the Nisga'a Nation, a Nisga'a Village or a Nisga'a Institution; and i. the taking of a natural resource on Nisga'a Lands for the personal consumption of a Nisga'a citizen, for any purpose other than profit. 10

NISGA' A NATION OWN SOURCE REVENUE AGREEMENT FISCAL FINANCING AGREEMENTS 20.

In determining the sum of the net transfers by Canada and British Columbia to the Nisga'a Nation under a fiscal financing agreement for each fiscal year commencing on or after the effective date (each a " particular year"), the Parties will deduct: a. the estimated Nisga'a Nation OSRC amount for the particular year; b. the amount, if any, by which the Nisga'a Nation own source revenue capacity for the second fiscal year preceding the particular year exceeds the estimated Nisga'a Nation OSRC amount for that second preceding fiscal year; and c. any amount due by the Nisga'a Nation to Canada or British Columbia, in respect of Nisga'a Nation own source revenue capacity for a preceding fiscal year, that was confirmed in the fiscal year immediately preceding the particular year by the resolution of a disagreement referred to in paragraph 25 or 26; and will add: d. the amount, if any, by which the estimated Nisga'a Nation OSRC amount for the second fiscal year preceding the particular year exceeds the Nisga'a Nation own source revenue capacity for that second preceding fiscal year; and e. any amount due by Canada or British Columbia to the Nisga'a Nation, in respect of Nisga'a Nation own source revenue capacity for a preceding fiscal year, that was confirmed in the fiscal year immediately preceding the particular year by the resolution of a disagreement referred to in paragraph 25 or 26. 21.

In paragraph 20.

"estimated Nisga'a Nation OSRC amount" for a particular year is an amount equal to the aggregate referred to in paragraph 5 for the second fiscal year preceding the particular year, as reported in the Nisga'a OSRC annual report for that second preceding fiscal year. multiplied by the specified percentage for the particular year. 11 In paragraph 21, "specified percentage" is 0% for each of the first two fiscal years commencing on or after the effective date, 5% for each of the third and fourth fiscal years, 10% for the fifth fiscal year, 15% for the sixth fiscal year, 20% for the seventh fiscal year, 30% for the eighth fiscal year, 40% for the ninth fiscal year, 55% for the tenth fiscal year, 70% for the eleventh fiscal year, 85% for the twelfth fiscal year, and 100% for the thirteenth and subsequent fiscal years. 11

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT NISGA'A NATION OSRC ANNUAL REPORT 23. Within nine months after the end of each fiscal year, the Nisga'a Nation will prepare a Nisga'a Nation OSRC annual report substantially in the form of

Schedule B for that fiscal year setting out: a. the own source revenue capacity for that fiscal year in respect of each category of revenue for which a calculation is required to be made under this Agreement; and b. Nisga'a Nation own source revenue capacity for that fiscal year; and provide a copy to Canada and British Columbia. 24.

For purposes of providing information for negotiation of the next own source revenue agreement, the Nisga'a Nation OSRC annual report for a fiscal year will include an analysis that compares the own source revenue capacity for that year in respect of commercial and inves:ment activities that is determined under this Agreement with the amount that would be determined if own source revenue capacity in respect of commercial and investment activities for that year were: a. calculated at the prevailing combined federal and British Columbia corporate income tax rates on business income; and h. based on the consolidated net accounting incomes from commercial and investment activities of entities referred to in paragraph 7, calculated before deductions for income tax or an amount payable under a law made under paragraph 21 of the Fiscal Relations

Chapter but after extraordinary items, in accordance with generally accepted accounting principles applied on a consistent basis from year to year. 25. At any time within four years of the Nisga'a Nation OSRC annual report for a fiscal year being provided to Canada and British Columbia under paragraph 23, a Party may notify the other Parties that it disagrees with the determination of an amount reported in that report. 26.

Notwithstanding paragraph 25. at any time a Party may notify the other Parties that it disagrees with the determination of an amount included in a Nisga'a Nation OSRC annual report for a fiscal year: a. in any case where a change in that amount is required to reflect, and reasonably 12

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT can be considered to be consequential upon, an assessment or reassessment by a taxing authority; or h. if the person filing the report has made any misrepresentation that is attributable to neglect. carelessness or wilful default, or has committed fraud in filing the report or in supplying information required in connection with the report. 27.

A notice given by a Party under paragraph 25 or 26 will: a. identify the relevant Nisga'a Nation OSRC annual report and fiscal year; h. set out each determination that the Party disagrees with; c. set out a calculation of each adjustment that the Party proposes be made to an amount included in the report, with detailed reasons; and d. include a proposal for how the adjustment could be made. 28.

Within 45 days of the date of a notice given by a Party under paragraph 25 or 26, each of the other Parties may respond in writing to the notice, setting out: a. their acceptance of each proposed adjustment; or b. proposed alternative adjustments, with detailed reasons. 29. If the Parties fail to resolve a matter, in respect of which a notice is given under paragraph 25 or 26, by informal discussion within 60 days after the date of that notice, a Party may within 90 days after the date of that notice give another Party a notice of dispute in respect of the matter. FINANCIAL RECORDS 30.

All accounts and financial statements required to be prepared under this Agreement will be prepared in accordance with generally accepted accounting principles. 31. The financial records of the Nisga'a Nation, a Nisga'a Village, a Nisga'a government corporation or a Nisga'a settlement trust, for a fiscal year will be: a. retained by the Nisga'a Nation for 10 years after the date of submission of the Nisga'a Nation OSRC annual report for the fiscal year to Canada and British 13

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Columbia under paragraph 23: and b. made available to Canada and British Columbia at the principal administration offices of the Nisga'a Nation for inspection. on a confidential basis, within 30 days of receipt of a request from Canada or British Columbia to inspect the records. TRIPARTITE FINANCE COMMITTEE 32. A Tripartite Finance Committee will be: a. established by the Parties as soon as practicable after the effective date; b. composed of one member designated by each Party; and c. kept in place throughout the term of this Agreement. 33.

The members of the Tripartite Finance Committee will: a. meet at least once a year to carry out an annual review of this Agreement; b. if they all agree, recommend in writing to the Parties any changes to this Agreement: c. do such things as arc appropriate to facilitate the resolution of any problems that arise in respect of this Agreement: d. during the eighth and fifteenth years of this Agreement, carry out a comprehensive review of this Agreement; and e. do such other things relating to this Agreement as the Parties may agree from time to time to be appropriate. 34.

A Tripartite Finance Committee member may bring resource persons to meetings as they consider appropriate to assist in fulfilling their responsibilities under this Agreement. DISPUTE RESOLUTION 35. The Parties desire and expel that a dispute arising from this Agreement will be resolved by informal discussion between the disputing Parties. 14

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT 36. If the dispute is not resolved by informal discussion within 60 days of a Party notifying another Party of the dispute, it will be referred to the Tripartite Finance Committee. 37. If the Tripartite Finance Committee fails to resolve a dispute within 45 days of the dispute being referred to it, or a longer period if the Parties agree, the dispute will be dealt with under the Dispute Resolution

Chapter and, for greater certainty, the dispute will be considered to be a dispute for the purposes of that Chapter. 38. The discussions in paragraphs 35 to 37 will be considered to be "collaborative negotiations" for the purposes of the Dispute Resolution Chapter. INFORMATION EXCHANGE, GENERAL PROVISION 39. The Parties will share information as required for the purposes of implementing and monitoring this Agreement and to facilitate the negotiation of future own source revenue agreements. TERM 40.

The term of this Agreement: a. starts on the effective date: and b. subject to paragraph 41, ends at the end of the fiscal year during which the 12th anniversary of that effective date occurs. 41. Unless a Party provides each of the other Parties, no less than fifteen months before the term of this Agreement. as extended from time to time under this paragraph, ends under subparagraph 40(b), with a notice to end this Agreement, the time at which the term of this Agreement ends under subparagraph 40(

b) will be extended by two years. 42. For greater certainty, paragraphs 40 and 41 are intended to result in the term of this Agreement continuing unless a Party provides notice under paragraph 41 to end this Agreement. SUBSEQUENT OWN SOURCE REVENUE AGREEMENT 43. At least one year before the end of the term of this Agreement, Canada, British Columbia and the Nisga'a Nation will begin negotiating the next own source revenue agreement. 15

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT 44. If the Parties do not reach a further own source revenue agreement by the end of the term of this Agreement, this Agreement will continue in effect for a period of two years from the end of the term of this Agreement while they attempt to reach the further own source revenue agreement.

SCHEDULE DESCRIPTION 45. The following Schedules are attached to and form part of this Agreement:

Schedule Description A Calculation of the Composite Tax Rate B Nisga'a Nation Own Source Revenue Capacity Annual Report 46. The following

Schedule is attached to this Agreement for convenience only, does not form part of this Agreement and in no way defines, limits, alters or enlarges the scope or meaning of any provision of this Agreement:

Schedule Description C Technical Notes AMENDMENT 47. Any amendment to this Agreement must he in writing and executed by all Parties. NO IMPLIED WAIVER 48. No term or condition of this Agreement, or performance by a Party of a covenant under this Agreement, will be deemed to have been waived unless the waiver is in writing and signed by the Party or Parties giving the waiver. 49. No written waiver of a term or condition of this Agreement, of performance by a Party of a covenant under this Agreement, or of default by a Party of a covenant under this 16

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Agreement, will be deemed to be a waiver of any other covenant, term or condition, or of any subsequent default. FURTHER ASSURANCES 50. The Parties will execute any other documents and do any other things that may be necessary to carry out the intent of this Agreement.

INTERPRETATION 51. In this Agreement: a. unless it is otherwise clear from the context, "including" means "including, but not limited to", and "includes" means "includes, but is not limited to"; b. headings are for convenience only, do not form a part of this Agreement and in no way define, limit, alter or enlarge the scope or meaning of any provision of this Agreement; c. a reference to a statute includes every amendment to it, every regulation made under it and any law enacted in substitution for it or in replacement of it; d. unless it is otherwise clear from the context, a reference to a

Schedule means a

Schedule to this Agreement; e. unless it is otherwise clear from the context, the use of the singular includes the plural, and the use of the plural includes the singular; and f. all accounting terms have the meanings assigned to them under generally accepted accounting principles. 52. This Agreement does not form part of the Nisga'a Final Agreement. 53. This Agreement is not intended to be a treaty or a land claim agreement, and is not intended to recognize or affirm aboriginal or treaty rights, within the meaning of sections 25 and 35 of the Constitution Act. 1982. TIME OF ESSENCE 54. Time is of the essence in this Agreement . 17

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT SEVERABILITY 55. If any part of this Agreement is declared or held invalid for any reason, the invalidity of that part will not affect the validity of the remainder which will continue in full force and effect and be construed as if this Agreement had been executed without the invalid portion. ENUREMENT 56. This Agreement will enure to the benefit of and be binding upon the Parties and their respective permitted assigns. ASSIGNMENT 57. Unless otherwise agreed by the Parties, this Agreement may not be assigned, either in whole or in part, by any Party to it. NOTICES 58.

Unless otherwise provided, a notice, document, request, approval, authorization, consent or other communication (each a "communication") required or permitted to be given or made under this Agreement must be in writing and may be given or made in one or more of the following ways: a. delivered personally or by courier: h. transmitted by facsimile transmission; or c. mailed by prepaid registered post in Canada. 59.

A communication will be considered to have been given or made, and received: a. if delivered personally or by courier, at the start of business on the next business day after the business day on which it was received by the addressee or a responsible representative of the addressee; h. if sent by facsimile transmission and if the sender receives confirmation of the transmission, at the start of business on the next business day on which it was transmitted; or 18

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT c. if mailed by prepaid registered post in Canada, when the postal receipt is acknowledged by the addressee. 60.

A communication must be delivered, transmitted to the facsimile number or mailed to the address of the intended recipient set out below: For: Canada Attention: Minister of Indian Affairs and Northern Development House of Commons Confederation Building Ottawa, Ontario K1A 0A6 Fax Number: (819) 953-4941 For: British Columbia Attention: Minister of Aboriginal Affairs Parliament Buildings Victoria, British Columbia V8V 1X4 Fax Number: (250) 356-1124 For: Nisga'a Nation Attention: President P.O. Box 231 New Aiyansh, British Columbia VW 1A0 Fax Number: (250) 633-2367 19

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT 61. A Party may change its address or facsimile number by giving a notice of the change to the other Parties in the manner set out above. THIS AGREEMENT HAS BEEN EXECUTED as of the day and year first above written.

EXECUTED in the presence of: HER MAJESTY THE QUEEN IN RIGHT OF CANADA as represented by the Minister of Indian Affairs and Northern Development As to the signature of the Minister of Indian Affairs and Northern Development Minister of Indian Affairs and Northern Development EXECUTED in the presence of: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA as represented by the Minister of Aboriginal Affairs As to the signature of the Minister of Aboriginal Affairs Minister of Aboriginal Affairs EXECUTED in the presence of: NISGA'A NATION as represented by the President As to the signature of the President President 20

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT

Schedule A Calculation of Composite Tax Rate The composite tax rate ("CTR") in paragraph 14 of this Agreement, as calculated in Table 1, is determined as follows: CTR= is the sum over (

i) of C; where: • i is an income range as set out in Table 1; • C, =A, x B; • A, is the estimated percentage of Nisga'a Citizens having total annual incomes within income range (

i) as set out in Table 1 column A; and • B, is the estimated combined marginal net tax rate applicable to income range (

i) as determined in Table 2. The composite tax rate will be calculated in accordance with this

Schedule for the third and each subsequent fiscal financing agreement (FFA), using the latest available data as of the calculation date and will remain fixed for the duration of each FFA. It will be recalculated 90 days prior to the FFA. 21

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Table 1 sets out the calculation of the composite tax rate. Table 1 A B C Income Range (i) 1999$ Aboriginal Income Distribution Combined Marginal Rate Product of A and B $0-$4,999 55.2% 5.0% 2.8% $5,000-$9,999 11.5% 20.5% 2.4% $10,000-$14,999 8.7% 27.8% 2.4% $15,000-$19,999 5.6% 31.4% 1.7% $20,000-$24,999 4.5% 36.2% 1.6% $25,000-$29,999 3.5% 44.6% 1.6% $30,000-$34,999 2.5% 57.2% 1.5% $35,000-$39,999 2.4% 56.5% 1.4% $40,000-$44,999 1.7% 49.9% 0.8% $45,000-$49,999 1.5% 48.5% 0.7% $50,000+ 2.8%, 48.5% 1.3% CTR = sum over (

i) of Ci 18.2% Column A sets out A,, the estimated percentage of British Columbia resident aboriginal people having total annual incomes, including government transfers, within each income range (i). The estimates are based on British Columbia On and Off Reserve Aboriginal Income Distribution data obtained from Statistics Canada Catalogue No.(94-325) for the most recent year available (1991). This information is adjusted to 1999. Future composite tax rate calculations will use income distribution data for Nisga'a citizens, if available 1:.t the time, and if the Parties agree.

If the composite tax rate is calculated when current income distribution data is not available either for British Columbia resident aboriginal people or Nisga'a citizens, the calculation will be prepared on the assumption that: 22

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT a. each A, is the same as in the last preceding estimate: h. each income range (

i) will be inflated in proportion to changes in the Final Domestic Demand Implicit Price Index for Canada, as most recently published at the time by Statistics Canada. Column B sets out the combined marginal net tax rate B, applicable to each income range (i), as determined from Table 2. Column C sets out the composite tax rate C, for each income range (i). C, is the product of A, and B,. The composite tax rate in paragraph 14 of this Agreement is the sum of column C. 23

NISGA' A NATION OWN SOURCE REVENUE AGREEMENT Calculation of Combined Marginal Net Tax Rate Table 2 sets out the rates of tax and the rate of reduction in tax system credits and benefits, that apply in British Columbia to additional income earned by an individual in income range (i), based on tax policies in effect on December 31, 1997. The amount B i is the sum of row (

i) for income range (i). Table 2 Marginal Income Tax Rate (1997 Rates) Marginal Transaction Tax Rates (1997 Rates) Tax Credit & Benefit Reduction Rate (1997 Rates) Combined Marginal Net Tax Rate (B,) Income Federal BC Federal GST PST Fuel (T7) Range (

i) Income Income Income (T4) (T5) (T6) 1999 $ Tax Tax Surtax (T1) (12) (T3) $0-$4.999 0.0% 0.0% 0.0% 3.0% 2.0% 0.0% 0.0% 5.0% $5,000- 10.2% 5.2% 0.3% 3.0% 2.0% 0.0% -0.2% 20.5% $9.999 $10.000- 17.0% 8.7% 0.5% 3.0% 2.0% 1.0070 -4.4% 27.8% $14.999 $15,000- 17.0% 8.7% 0.5% 3.0% 2.0% 1.0% -0.8% 31.4% $19,999 $20.000- 17.0% 8.7% 0.5% 3.007 2.0% 1.0% 4.0% 36.2% $24.999 $25.000- 17.0% 8.7% 0.5% 3.0% 2.0% 1.0%. 12.4% 44.6% $29.999 $30.000- 24.2% 12.3% 0.7% 3.0% 2.0% 1.0% 14.0% 57.2% $34.999 $35,000- 26.0% 13.3% 0.8% 3.0% 2.0% 1.0% 10.4% 56.5% $39.999 $40.000- 26.0% 13.3(7( 0.8% 3.0% 2.0% 1.0% 3.8% 49.9% $44.999 $45.000- 26.0% 13.3% 0.8% 3.0% 2.0% 1.0% 2.4% 48.5% $49,999 $50,000+ 26.0% 13.3% _ 0.8% 3.0% 2.0% 1.0% 2.4%' 48.5% 24

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT The rates are determined by the rates and rules in effect under applicable federal and provincial laws, for individuals in each income range at the time of the calculation and the assumptions that are made with respect to those individuals as set out in this schedule. If a tax, tax credit or benefit is introduced, eliminated, or restructured, Table 2 will be adjusted to reflect that change in a manner consistent with the method used to estimate the other rates in the table. 25

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT The following paragraphs and tables outline how the rates in Table 2 were determined for each type of tax and benefit.

Table 3 - Marginal Income Taxes Rates Tax (1997 Rates)' Tax Category Tax Rate Feo‘:ral Income Tax taxable income of $7,000 to $29,590' taxable income of $29,591 22 to $59,180 taxable income greater than $59,181' 17% 26% 29% BC Income Tax all income categories 51% of Federal Income Tax Rate Federal Income Surtax all income categories 3% of Federal Income Tax Rate British Columbia marginal surtax rates will be added to Table 2 in future calculations if information is available which allows a reasonable estimate of the incomes and number of aboriginal people, or Nisga'a citizens where Nisga'a specific data are used in the calculation, who are subject to the surtax. 2 In Table 2, the 26% (29%) federal income tax rate bracket was assumed to start at $31,000 ($64,000) rather than $29,591 ($59,181). in order to recognize that each income range (

i) reflects total gross income, rather than taxable income, and to recognize that taxpayers can claim deductions to reduce the amount of gross income that is subject to tax. Table 4- Nlarginal Transaction Tax Rates Transaction Tax (1997 Rates) Category Marginal Rate Goods and Services Tax ("GS*1 —) All income categories 3.0% Provincial Sales Tax ("PSI') , All income categories 2.0(7( Fuel Tax Income $10.000 and below Income above $ ROW 0.0% l.0% 26

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT GST The marginal rate of GST was derived as follows; 1. GST is 7% and it is assumed that 65% of goods and services are subject to GST. 2. It is assumed that 70% of each new dollar is disposable income. ($0.70 of each new dollar is available to purchase goods and services and to pay the applicable GST). The amount of each new dollar that is spent on goods and services can be derived as follows: Total Purchases + 0.07 X Total Purchases = $0.70 Total Purchases = 0.07/1.07= $0.65 Therefore, 65% of each new dollar is spent on goods and services. 3.

Combine 1. and 2. to get the marginal rate of GST. 7% X 65% X 65% = 3% Note: It is recognized that incomes less than $7,000 do not pay income tax so that 100% of each new dollar is disposable income. But, it is assumed that these individuals spend a greater portion of their incomes on items such as food and shelter which are not subject to GST. It is assumed that: 1. GST is 7% and 46% of goods and services are subject to GST 2. 100% of each new dollar is disposable income.

The formula now becomes: Total Purchases + 0.07 X Total Purchases = $1.00 Total Purchases = $1.00 1$1.07 = $0.93 Therefore, 93% of each new dollar is spent on goods and services 3. Combining 1. and 2 yields the marginal rate of GST. 7% X 46% X 93% = 3%. PST In Table 2, it is assumed that 2/3 of goods and services that are subject to GST also are subject to PST, which is 7%. Consequently, the marginal PST rate included in Table 2 is 2/3 of the marginal GST rate (i.e. 2/3 X 65% X 65% X 7%).

Fuel Tax In Table 2, it is assumed that 2.4% of each additional dollar of income is spent on fuel, based on the Household Expenditure Survey for British Columbia, 1992, and that federal excise tax and provincial motor fuel tax together represent 42% of the assumed expenditure. 27

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Table 5 - Marginal Benefits Rates Income Range (i) 1997 $ Income Supplement BC Family Bonus Child Tax Benefit PST Credit GST Credit Combined Rate 1 Adjusted Combined Rate 2 $0-$4,999 -0.2% 0.0% 0.0% 0.0% -0.0% -0.2% 0.0% $5,000- $9,999 -4.0% 0.0% 0.0% 0.0% -0.4% -4.4% -0.2% $10,000- $14,999 -0.8% 0.0% 0.0% 0.0% 0.0% -0.8% -4.4% $15,000- $19,999 0.0% 3.0% 0.0% 1.0% 0.0% 4.0% -0.8% $20,000- 3.9% 7.8% 0.0% 0.7% 0.0% 12.4% 4.0% $24,999 $25,000- $29,999 1.0% 7.8% 1.9% 0.0% 3.3% 14.0% 12.4% $30,000- $34,999 0.0% 4.7% 2.4% 0.0% 3.3% 10.4% 14.0% $35,000- $39,999 0.0% 0.0% 2.4% 0.0% 1.4% 3.8% 10.4%. - _ $40,000- $44.999 0.0% 0.0% 2.4% 0.0% 0.0% 2.4%, 3.8% $45,000- $49,999 0.0% 0.0'4 2.4% 0.0% 0.0% 2.4% 2.4% $50.000+ 0.0% 0.0% 2.4% _ 0.0% 0.0% _ 2.4% 2.4% Not all benefits are enjoyed by all members of society.

In order to account for this, the marginal rates of each benefit were adjusted (multiplied) by the percentage of the British Columbia Aboriginal population who would qualify for it. For example, the Income Supplement is only available to lone parents and married couples with children. This group makes up 49.2% of the adult Aboriginal population in BC according Statistics Canada, based on the 1991 census. Therefore, the marginal rate of the income supplement (Table 7) is adjusted (multiplied) by 49.2% (Table 6) over each income category greater than $4,999.

In the $0-$4,999 income range, an estimated 20.8% were adults, as all children were assumed to earn $4,999 or less, so the marginal rate of the Income Supplement in the this income category was multiplied by 10.2% (20.8% X 49.2%). This group makes up 49.23% of the adult Aboriginal population in BC 28

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT according Statistics Canada, based on the 1991 census. Therefore, the marginal rate of the income supplement is adjusted (multiplied) by 49.23% over each income category greater than $4,999. 2 Income ranges (

i) include government transfers, and thus, do not adequately represent the thresholds at which the tax credit and benefit reductions occur in practice. The combined rate calculated for each income range (

i) has been shifted to the next highest income range (

i) to compensate for this factor. The following chart is based on information from Statistics Canada for the Aboriginal population in British Columbia, based on the 1991 census. Table 6 Category Percentage of Total Population Percentage of Adult Population Couples without children 10.7% 19.1% Couples with children 22.0% 39.2% Lone Parents 5.6% 10.1% Non Family Person 17.8% 31.7% Children 44.0% 0% Each benefit is adjusted (multiplied) by the percentage of the adult population who is eligible to receive it. The following table outlines the assumptions made about each benefit. 29

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT Table 7 Benefit Assumptions Income Supplement The supplement is $500 or 8% of earned income in excess of $3,750, whichever is less. The supplement is reduced by 10% of income in excess of $20,921. This benefit is available to couples with children and lone parents. BC Family Bonus The maximum BC Family Bonus is $1236 per year, per child uncer 18, for families with incomes of $18,000 or less. This benefit is reduced by 16% of income in excess of $18,000 for families with two children. Aboriginal families are assumed to have 2 children.

This benefit is available to couples with children and lone parents. Child Tax Benefit The Child Tax Benefit pays an annual basic amount of $1,020 per child. This amount is reduced by 5% of incomes in excess of $25.921 for families with two children. Aboriginal families are assumed to have 2 children. This benefit is available to couples with children and lone parents. PST Credit The annual maximum credit is $50 per adult family member. The full amount is reduced by 2% of income in excess of $15,000 for single individuals and lone parents, and 5% for couples with incomes greater than $18.000.

This is available to couples. with and without children, lone parents and single individuals. GST Credit Lone Parents receive $199 plus an additional $199 for the first child, $105 for the second child and an additional $105 phased in at 2% of income in excess of $3.750. The maximum amount is reduced by 5% of income in excess of $25.921. Lone parents are assumed to have 2 children. Single individuals living alone receive $199 plus an additional $105 phased in at 2% of income in excess of $3750. The maximum amount is reduced by 5% for income in excess of $25.931.

It was assumed that half of non family members are single and living alone. Couples (with children) receive $199 for each parent and $105 for each child. There is no phase in. The maximum amount is reduce by 5% for incomes greater than $25, 921. Couples are assumed to have 2 children. Couples (without children) receive - $199 for each parent. There is no phase in. The maximum amount is reduced by 5% for income in excess of $25,921. Couples are assumed to have 2 children. 30

NISGA' A NATION OWN SOURCE REVENUE AGREEMENT

Schedule B Nisga'a Nation Own Source Revenue Capacity Annual Report (Complete before effective date) 31

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT

Schedule C This

Schedule is attached to the Nisga'a Nation Own Source Revenue Agreement for convenience only, does not form part of that Agreement and in no way defines, limits, alters or enlarges the scope or meaning of any provision of that Agreement. Any reference in this

Schedule to a provision of the Income Tax Act reflects legislation in effect at December 31, 1999 and does not reflect amendments enacted after that date. For greater certainty, any amount in Nisga'a Nation own source revenue capacity that is determined with reference to a taxing statute will be determined with reference to that statute as it may be amended from time to time. Technical Notes Overview Funding of the Nisga'a Nation and Nisga'a Villages is to be a shared responsibility of Canada, British Columbia and the Nisga'a Nation.

The —.1rties will enter into fiscal financing agreements whereby Canada and British Columbia will transfer funding to enable the Nisga'a Nation to provide specified public programs and services. The amount of the transfer will reflect, among other things, the financial contribution ("Nisga'a Nation own source revenue capacity") to be made by the Nisga'a Nation out of its own revenue resources. That financial contribution will be determined and applied pursuant to a separate own source revenue agreement among the Parties, as described in this schedule.

The Nisga'a Nation Own Source Revenue ("OSR") Agreement: • sets out the rules to determine the Nisga'a Nation's financial contribution in respect of the programs and services described in the Nisga'a Nation Fiscal Financing Agreement ("fiscal financing agreement"); and • describes how that contribution will be applied in determining the net transfers to be made by Canada or British under that fiscal financing agreement. Con►ponents of Nisga'a Nation Own Source Revenue Capacity The OSR Agreement contemplates that the Nisga'a Nation own source revenues will be derived from five principal sources: 32

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT commercial and investment activities of the Nisga'a Nation, the Nisga'a Villages, and certain entities in which any of them holds a beneficial interest, where those activities are not otherwise subject to tax; • direct taxation by the Nisga'a Nation and Nisga'a Villages; • incomes from property within a Nisga'a settlement trust; charges and fees derived by the Nisga'a Nation, the Nisga'a Villages and certain entities in which any of them holds a beneficial interest; • other revenues derived by the Nisga'a Nation, the Nisga'a Villages and certain entities in which any of them holds a beneficial interest.

In general, and subject to specific exclusions and transitional rules, the Nisga'a Nation own source revenue capacity in respect of these revenue sources will be an approximation of the tax revenues and other levies that Canadian governments might be expected to derive from similar revenue sources within their jurisdiction. Excluded Revenues Certain items are permanently excluded from the Nisga'a Nation own source revenue capacity.

In general, these excluded items represent property transferred to the Nisga'a Nation under the Nisga'a Final Agreement (the "Treaty"), or proceeds from the sale thereof, incomes identified and specifically dedicated to pre-identified government purposes, such as income earned by the Nisga'a capital finance authority, gifts received from third parties, and inter-government transfers of revenues that have otherwise already been contemplated in the determination.

Transitional Rules Transactions taxes and other taxes payable by Nisga'a citizens to the Nisga'a Nation, which ordinarily would be included, will be excluded from Nisga'a Nation own source revenue capacity during, respectively, the first eight and twelve years immediately following the effective date' of the Treaty. Nisga'a Nation own source revenue capacity will be phased in on a staged and incremental basis over the first twelve years following the effective date, so that only a specified percentage of the amount otherwise determined will be taken into account in each of those years.

Income and 'Unless otherwise provided, the words "effective date" in this document refer to the effective date of the Treaty 33

NISGA' A NATION OWN SOURCE REVENUE AGREEMENT capital gains of the Nisga'a settlement trust will not be taken into account for the first twelve years commencing on or after the effective date. Organization of OSR Agreement Paragraph(

s) General

Definitions and

Interpretation 1 to 4 Definition of Nisga'a Nation own source revenue capacity 5 and 6 Components of Nisga'a Nation own source revenue capacity Commercial and Investment Activities 7 to 11 Nisga'a Taxes 12 Nisga'a Settlement Trusts 13 to 15 Charges and Fees 16 and 17 Other Nisga'a Revenues 18 Amounts Not Included 19 Application of Nisga'a Nation own source revenue capacity in Fiscal Financing 20 to 22 Agreements Reporting: Nisga'a Nation OSRC Annual Report 23 and 24 Administration: Objections to Reported Nisga'a Nation own source revenue capacity 25 to 29 Financial Records 30 and 31 Tripartite Finance Committee 32 to 34 Dispute Resolution 35 to 38 Information Exchange 39 Term 40 to 42 Subsequent Agreement 43 and 44 Schedules 45 and 46 Amendment 47 No Implied Waiver 48 and 49 Further Assurances 50

Interpretation 51 to 53 Time. Severability. Enurement and Assignment 54 to 57 Notice 58 to 60 Calculation of Composite Tax Rate for Nisga'a Settlement Trust Sched A Nisga'a Nation OSRC Annual Report Sched B Technical Notes Sched C Paragraph 4 Paragraph 4 is an interpretative provision which deals with the revenues of a Nisga'a exempt corporation. 34

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT A "Nisga'a exempt corporation", as defined in paragraph 1 of the Fiscal Relations Chapter' of the Treaty, is a corporation, other than a Nisga'a government corporation, in which the Nisga'a Nation or a Nisga'a Village has a direct or indirect interest as a shareholder and that is exempt from Canadian federal or provincial income tax.

A corporation will be a "Nisga'a exempt corporation", if it meets certain tests set out in subsections 149(1)(d.3) to (d.6) of the Income Tax Act, as follows: a. at least 90% of its shares are owned by one or more of the Nisga'a Nation, a Nisga'a Village or a Canadian municipality, in combination with one or more of the following: i.

Canada, ii. a Canadian province, iii. a corporation all of the shares of which are owned by Canada or a Canadian province, or iv. a wholly owned subsidiary` of a corporation described in subparagraph (iii); b. it is a wholly owned subsidiary of a corporation described in paragraph (a), c. at least 90% of its shares are owned by the Nisga'a Nation, a Nisga'a Village or a Canadian municipality, where the corporation's income from activities carried on outside of the geographic boundaries of the shareholders does not exceed 10% of its income for the period; or d. it is a wholly owned subsidiary of a corporation referred to in paragraph (

c) and meets the income test described in that paragraph. For example: a. Companies A, B and C are Nisga'a exempt corporations, where: i. the shares of Company A are owned 50% by the City of Terrace, 41% by the Nisga'a Nation and 9% by a U.S. public corporation, ii. Company A owns 100% of Company B, and 'Unless otherwise provided, the word "Chapter" in this

schedule refers to a

Chapter in the Treaty 'In this schedule, the phrase "wholly owned subsidiary"includes any corporation in a chain of wholly owned subsidiary corporations. 35

NISGA'A NATION OWN SOURCE REVENUE AGREEMENT iii. Company B owns 100% of Company C; (provided the income test is met in all cases); and b. Companies E and F are not Nisga'a exempt corporations, where: i. the Nisga'a Nation owns 100% of Company D, ii. Company D owns 90% of Company E, and iii. Company E owns 100% of Company F. (Companies E and F fail the stock ownership test since the 90% interest in Company E is held through a corpom:ion, rather than directly by the Nisga'a Nation. Paragraph 4(

a) ensures that Nisga'a Nation own source revenue capacity does not include any share of the revenues of a Nisga'a exempt corporation that ultimately will accrue to the benefit of a shareholder other than the Nisga'a Nation, a Nisga'a Village or a Nisga'a settlement trust. For instance, in example (

a) above, only 41% of the own source revenue capacity attributable to Companies A, B and C will be taken into account in Ni.sga'a Nation own source revenue capacity. Paragraph 4(

b) provides that, where the Nisga'a Nation and Nisga'a Villages, acting alone or together, cannot cause a particular Nisga'a exempt corporation to pay dividends, the own source revenue capacity attributable to the corporation will be taken into account only when and to the extent that the corporation distributes that own source revenue capacity as a dividend to the Nisga'a Nation, a Nisga'a Village or a Nisga'a government corporation. In example (

a) above, assume that in Year 1 Company B sells its shares of Company C and realises a $500 capital ,gain. Company B's only asset was its investment in Company C. In Year 2, Company B pays a $250 dividend to Company A. Company A had no retained earnings at the beginning of Year 2. In Year 2, Company A receives the $250 dividend from Company B and earns $1,000 of commercial business income from its own operations. Company A pays a $500 dividend to its shareholders at the end of Year 2. The Nisga'a Nation's share of the $500 dividend is $205. Nisga'a Nation own source revenue capacity for Year 2 will include 44.339% (100x 36

NISGA' A NATION OWN SOURCE REVENUE AGREEMENT (39.215%4 of $250 + 45.62%' $1000)/($250 + $1,000)1 of the $205 dividend, or $91. Paragraph 5 Paragraph 5 is the charging provision of the OSR Agreement. This paragraph constitutes the definition of Nisga'a Nation own source revenue

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 624/2000
Type	order_in_council
Volume / chapter	arc oic 0624 2000
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	1d7338f1d2ac58a34d4cfa016b4d36a03841595b

Source file is stored in the law ingest library (pdf).