Amending Agreement for the Kluane Nation Goods and Services Tax Administration Agreement (to be read with the Kluane First Nation Goods and Services Tax Administration Agreement) - December 22, 2008

WHEREAS:

the Kluane Goods and Services Tax Act imposes a value-added tax within the lands described opposite the name of the Kluane First Nation in Schedule 1 to the First Nations Goods and Services Tax Act (Canada);

section 8 of the Kluane Goods and Services Tax Act provides that the Chief of KFN, with the approval and authorization of the KFN Council, may enter, on behalf of KFN, into an agreement amending or varying the 2005 Agreement;

subsection 5(3) of the First Nations Goods and Services Tax Act (Canada) provides that the Minister of Finance, with the approval of the Governor in Council, may enter into an agreement amending or varying the 2005 Agreement;

in accordance with section 49 of the 2005 agreement, the parties have considered amending the terms and conditions in Annex B of the 2005 agreement to make them consistent with the terms and conditions of Annex B of tax administration agreements that the Government of Canada has concluded since 2005 with other first nations with respect to their goods and services taxes;

the KFN Council has approved and authorized the Chief to enter into this amending agreement;

the Minister of Finance has the approval to enter into this amending agreement;

NOW THEREFORE, the parties agree as follow:

1. The references to “the schedule” in the following provisions of the 2005 Agreement are replaced with “Schedule 1”:

• (a) the first provision following the word “Whereas” in the title page; and
• (b) clause 2 of Annex A.

2. Annex B to the 2005 agreement is replaced by the annex called “Annex B” to this amending agreement.

3. This amending agreement is effective from the date on which it is executed by both parties.

1. The following definitions apply in this annex.

• “Average Net GST Per Canadian” (AvNetGSTpc), for an Entitlement Year, means the total amount of net GST for Canada for that Entitlement Year divided by the total population of Canada for that Entitlement Year.
• “DCY” means the number of days in the calendar year that includes the particular Entitlement Year.
• “DEY” means the number of days in the particular Entitlement Year.
• “Estimate of Tax Attributable to the KFN”, for a particular Entitlement Year, means an interim or final Estimate of Tax Attributable to the KFN for that particular Entitlement Year determined pursuant to Annex A.
• “Lands of the KFN” means the lands described opposite the name of the KFN in Schedule 1 to the Federal Act.
• “Population of Relevance” (PofR), for an Entitlement Year, means the sum of:
  • (a) the number, as agreed by the Parties, of Citizens who on the December 31 immediately before the beginning of that Entitlement Year live on the Lands of the KFN and
  • (b) the number, as agreed by the Parties, of Indians, as defined in the Indian Act, R.S.C., c. I-5, who on the December 31 immediately before the beginning of that Entitlement Year live on the Lands of the KFN but are not Citizens.

• “Threshold 1”, for a particular Entitlement Year, means the amount determined by the formula: 2 * (AvNetGSTpc) * (PofR) * (DEY/DCY).
• “Threshold 2”, for a particular Entitlement Year, means the amount determined by the formula: 8 * (AvNetGSTpc) * (PofR) * (DEY/DCY).

2. The Parties agree that:

• (a) an Interim Estimate of the total amount of net GST for Canada for an Entitlement Year shall be based on preliminary PIOTs prepared by Statistics Canada for the calendar year that includes that Entitlement Year or, where preliminary PIOTs are not available for the calendar year that includes the Entitlement Year, on preliminary or final PIOTs for other years together with any adjustments that the Minister believes will yield a more accurate estimate of the total amount of net GST for Canada for that Entitlement Year; and
• (b) a Final Estimate of the total amount of net GST for Canada for that Entitlement Year shall be based on the final PIOTs prepared by Statistics Canada for the calendar year that includes that Entitlement Year.

3. For each Estimate of Tax Attributable to the KFN for a particular Entitlement Year, Canada’s share shall be determined as follows:

• Canada’s share = [(0.00 * A) + (0.50 * B) + (0.95 * C)]

• where
• A is the lesser of Threshold 1 for that particular Entitlement Year and the estimate;
• B is
  • (a) where the estimate is greater than Threshold 2, for that particular Entitlement Year, the result obtained by subtracting Threshold 1 from Threshold 2; and
  • (b) in any other case, the result obtained by subtracting the value of A from that estimate; and

• C is
  • (a) where the estimate is greater than Threshold 2, the result obtained by subtracting Threshold 2 from the estimate; and
  • (b) in any other case, nil.