First Nations Goods and Services Tax Act — F-11.7 5
Tax attributable to a first nation 5 (1) An administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a particular first nation shall provide for payments by the Government of Canada to the particular first nation in respect of that law based on an estimate for each calendar year of the total (in this section referred to as “tax attributable to the first nation”) of (a) the amount by which (i) the total of all amounts each of which is an amount of tax (other than tax payable by a listed financial institution) that, while that first nation law was in force, became payable in the year under a first nation law, as defined in subsection 11(1) or 12(1), or Part IX of the Excise Tax Act (other than subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1) and that is attributable to property or a service that is for consumption or use on the lands of the particular first nation exceeds (ii) the total of all amounts each of which is included in the total determined under subparagraph (i) and (A) is included in determining an input tax credit or in determining a deduction that may be claimed in determining the net tax of a person, (B) can reasonably be regarded as an amount that a person is or was entitled to recover by way of a rebate or refund or otherwise under a first nation law, as defined in subsection 11(1) or 12(1), or under any Act of Parliament, or (C) is an amount of tax in respect of a supply to a person who is, under any Act of Parliament or any other law, exempt from paying the tax, and (b) the total of all amounts each of which is determined in respect of a listed financial institution by the formula A × B where A is the excess that would be determined under paragraph (a) in respect of the financial institution if subparagraph (a)(i) were read without reference to the words “that is for consumption or use on the lands of the particular first nation” and that subparagraph included amounts of tax payable by the financial institution but did not include amounts of tax payable by any other person, and B is the percentage that would be determined, for the purpose of the description of C in the formula in subsection 225.2(2) of the Excise Tax Act , as the financial institution’s percentage for the particular first nation for the last taxation year of the financial institution ending in that calendar year (or, if the financial institution does not have a taxation year ending in that calendar year, for the period that would be that last taxation year if the taxation year of the financial institution that is partly included in that calendar year ended at the end of that calendar year) if the financial institution were a selected listed financial institution and the lands of the particular first nation were a participating province. Administration agreement (2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a first nation with the authorized body of the first nation and, among other things, the agreement shall provide (a) the method for estimating, in accordance with the formulae, rules, conditions and data sources specified in the agreement, the tax attributable to the first nation; (b) for the sharing, if any, between the first nation and the Government of Canada of the tax attributable to the first nation; (c) for the retention by the Government of Canada, as its property, of (i) the portion, if any, of the total tax imposed by the first nation under the first nation law that is not tax attributable to the first nation, and (ii) the Government of Canada’s share, if any, under paragraph (b) of the tax attributable to the first nation; (d) for the payments, and for the eligibility for payments, by the Government of Canada to the first nation in respect of the tax attributable to the first nation out of the Consolidated Revenue