British Columbia Order in Council — Order under Maa-nulth First Nations Final Agreement, s (O.C. 703/2021)

O.C. 703/2021

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered Lieutenant Governor Executive Council Chambers, Victoria Minister of Finance Presiding Member of the Executive Council (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Maa-nulth First Nations Final Agreement Act, S.B.C. 2007, c. 43, s. 11 Other: OIC 626/2014 O20555127 Page 1 with attachment (10 pages in total) On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the Maa-nulth First Nations Tax Treatment Agreement Amendment Agreement (No. 2), substantially in the form attached, is approved. 703 December 13, 2021

MAA-NULTH FIRST NATIONS TAX TREATMENT AGREEMENT AMENDMENT AGREEMENT (NO. 2) Canada British Columbia Maa-nulth First Nations

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 1 MAA-NULTH FIRST NATIONS TAX TREATMENT AGREEMENT AMENDMENT AGREEMENT (NO. 2) THIS AMENDMENT AGREEMENT dated for reference July 12, 2021.

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 (“British Columbia”) OF THE SECOND PART AND: HUU-AY-AHT FIRST NATIONS KA:’YU:’K’T’H’/CHE:K’TLES7ET’H’ FIRST NATIONS TOQUAHT NATION UCHUCKLESAHT TRIBE YUUŁUʔIŁʔATḤ (also known as the Ucluelet First Nation) (the “Maa-nulth First Nations”) OF THE THIRD PART (together, “the Parties”)

WHEREAS: A. The Parties have entered into the Maa-nulth First Nations Final Agreement which provides that the Parties will enter into a Tax Treatment Agreement; B. The Parties entered into a Tax Treatment Agreement effective April 1, 2011 (“the Maa- nulth First Nations Tax Treatment Agreement”) and amended it by way of the Maa-nulth

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 2 First Nations Tax Treatment Agreement Amendment Agreement, dated for reference April 1, 2013 (as amended, the “Maa-nulth First Nations Tax Treatment Agreement”); C. The Parties now wish to further amend the Maa-nulth First Nations Tax Treatment Agreement; and D.

Section 14 of the Maa-nulth First Nations Tax Treatment Agreement provides that any amendment must be in writing and executed by all Parties.

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

Section 1 of the Maa-nulth First Nations Tax Treatment Agreement is amended by: (

a) deleting “, “permanent establishment”” from the definition of “claimant” in subsection 1(1); (

b) deleting the definition of “permanent establishment” from subsection 1(1); and (

c) deleting subsection 1(4).

Section 4 of the Maa-nulth First Nations Tax Treatment Agreement is amended by: (

a) adding “and” after “engaged in by the claimant for profit or gain;” in paragraph 4(1)(a); (

b) replacing “; and” in paragraph 4(1)(

b) with “.”; (

c) deleting paragraph 4(1)(c); and (

d) deleting subsection 4(2).

Section 5 of the Maa-nulth First Nations Tax Treatment Agreement is amended by replacing paragraph 5(2)(

b) with the following: “5(2)(

b) substantially all of the property, service or fuel is consumed or used in respect of performing a function of government of the applicable Maa- nulth First Nation associated with the claimant under the Maa-nulth First Nations Final Agreement or other agreement between Canada and the Province, together or separately, and a Maa-nulth First Nation.”

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 3 4. Paragraph 9(1)(

c) of the Maa-nulth First Nations Tax Treatment Agreement is amended by adding the following after subparagraph 9(1)(c)(i): “(i.1) interests as a member of a partnership where: (

A) by operation of any law governing the arrangement in respect of the partnership, the liability of the trust is limited; (

B) the trust deals at arm’s length with each general partner of the partnership; and (

C) the trust, or the trust together with persons and partnerships with which it does not deal at arm’s length, holds interests in the partnership that: I. have a fair market value of not more than 20% of the fair market value of the interests of all members in the partnership; or II. have a fair market value of more than 20% of the fair market value of the interests of all members in the partnership as a result of a redemption of interests in the partnership, provided that the excess over 20% is disposed of by the end of the second calendar year following the calendar year in which the excess arose or other later time that the Minister may consider reasonable;”. 5. Paragraph 9(1)(

d) of the Maa-nulth First Nations Tax Treatment Agreement is amended by replacing subparagraph 9(1)(d)(

i) with the following: “(

i) carry on a business, except that for this purpose, if a trust holds an interest described in (c)(i.1), the trust shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership”. 6. Subsection 9(1) of the Maa-nulth First Nations Tax Treatment Agreement is amended by replacing paragraph 9(1)(

f) with the following: “(

f) contributions to the trust are limited to: (

i) contributions by one or more Maa-nulth First Nations of amounts which can reasonably be considered to be resource revenue sharing payments received by a Maa-nulth First Nation under

Chapter 17 Resource Revenue Sharing of the Maa-nulth First Nations Final Agreement; (ii) contributions by one or more Maa-nulth First Nations of amounts which can reasonably be considered to be: (

A) capital transfer payments received by a Maa-nulth First Nation;

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 4 (

B) payments to a Maa-nulth First Nation by Canada as reimbursement of a negotiation loan repayment in accordance with 16.2.1 of the Maa- nulth First Nations Final Agreement or of a negotiation loan prepayment in accordance with 16.3.1 of the Maa-nulth First Nations Final Agreement, but only to the extent that the contributions of amounts does not result in the cumulative total of amounts, described in clauses (

A) and (B), contributed by that Maa-nulth First Nation to a settlement trust exceeding the total Capital Transfer as set out in

Schedule 1 of

Chapter 16 of the Maa-nulth First Nations Final Agreement, for that Maa-nulth First Nation, including any adjustment made for inflation and interest calculated in accordance with the notes for finalizing the Capital Transfer Payment Plans of the same chapter; or (iii) amounts received from another Maa-nulth First Nation Settlement Trust where substantially all of the funds of that contributing trust can reasonably be considered to have been derived from a contribution to a Maa-nulth First Nation Settlement Trust by a Maa-nulth First Nation of amounts described in subparagraph (

i) or (ii) and income and gains derived therefrom”;

Section 11 of the Maa-nulth First Nations Tax Treatment Agreement is amended by adding the following new

section after subsection 11(4): “11.1 REGISTERED PENSION PLAN INCOME -- INCOME TAX 11.1

(1) Commencing for the taxation year in which this subsection comes into effect, and for subsequent taxation years, an amount received from a registered pension plan, or from a registered retirement savings plan or registered retirement income fund as these terms are defined by the Income Tax Act to which amounts were transferred from a registered pension plan in accordance with the Income Tax Act, by a Maa-nulth-aht who is an Indian as defined by the Indian Act, shall be exempt from income tax under the Income Tax Act, to the extent that the amount is attributable to employment income to which one of the following conditions applies: (

a) it was exempt from tax under

section 87 of the Indian Act or under any similar provision of any other Act of Parliament; or (

b) it was income for which income tax was remitted under a regulatory instrument which provided tax treatment comparable to that provided under

section 87 of the Indian Act. 11.1

(2) Income exempt from income tax because of subsection 11.1(1) will be administered by Canada on the same basis as if it were exempt from income tax because of

section 87 of the Indian Act.”.

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 5 CONTINUING FORCE AND EFFECT 8. For greater certainty, the Maa-nulth First Nations Tax Treatment Agreement as amended by this Amendment Agreement continues in full force and effect in accordance with its terms. FURTHER ASSURANCES 9. The Parties will execute any other documents and do any other things that may be necessary to carry out the intent of this Amendment Agreement. HEADINGS 10.

In this Amendment Agreement, headings are for convenience only, do not form a part of this Amendment Agreement and in no way define, limit, alter or enlarge the scope or meaning of any provision of this Amendment Agreement. NO ASSIGNMENT 11. This Amendment Agreement may not be assigned, either in whole or in part, by any Party. ENUREMENT 12. This Amendment Agreement will enure to the benefit of and be binding upon the Parties and their respective successors. COUNTERPARTS 13. This Amendment Agreement may be signed in one or more counterparts.

A signed counterpart may be delivered to another party by facsimile transmission or scanned and e-mailed, and a facsimile or scanned and e-mailed signature will be accepted the same as an original signature. Signed counterparts held by a party, taken together, will constitute one and the same instrument. EFFECTIVE DATE 14. This Amendment Agreement is effective on the date it is executed by the last of the Parties to execute it.

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 6 EXECUTED on the day of , 202_ in the presence of: Witness to the signature of the Minister of Finance Printed Name ) ) ) ) ) ) ) ) ) ) ) HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Finance Minister of Finance Printed Name EXECUTED on the day of , 202_ in the presence of: Witness to the signature of the Minister of Finance Printed Name ) ) ) ) ) ) ) ) ) ) ) HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, as represented by the Minister of Finance Minister of Finance Printed Name EXECUTED on the day of , 202_ in the presence of: Witness to the signature of Printed Name ) ) ) ) ) ) ) ) ) ) ) HUU-AY-AHT FIRST NATIONS, as represented by Authorized Signatory Printed Name

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 7 EXECUTED on the day of , 202_ in the presence of: Witness to the signature of Printed Name ) ) ) ) ) ) ) ) ) ) ) KA:’YU:K’T’H’/CHE:K’TLES7ET’H’ FIRST NATIONS, as represented by Authorized Signatory Printed Name EXECUTED on the day of , 202_ in the presence of: Witness to the signature of Printed Name ) ) ) ) ) ) ) ) ) ) ) TOQUAHT NATION, as represented by Authorized Signatory Printed Name EXECUTED on the day of , 202_ in the presence of: Witness to the signature of Printed Name ) ) ) ) ) ) ) ) ) ) ) UCHUCKLESAHT TRIBE, as represented by Authorized Signatory Printed Name

Canada (Finance) _______ British Columbia (Finance) _______ Maa-nulth _______ 8 EXECUTED on the day of , 202_ in the presence of: As to the signature of Printed Name ) ) ) ) ) ) ) ) ) ) ) YUUŁUʔIŁʔATḤ (also known as the Ucluelet First Nation), as represented by Authorized Signatory Printed Name

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 703/2021
Type	order_in_council
Volume / chapter	arc oic 0703 2021
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	61b02b5db7726ec46c788f6761d4479b336d7139

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