First Nations with a Self-Government Agreement Ending Indian Act Tax Relief – Determining Tax Relief for Indian Members

GST/HST Notices - Notice 238
May 2019

This version updates and replaces the one dated October 2008.

For purposes of this notice a “Treaty Beneficiary” means the following individuals who are required to pay GST/HST as they are no longer entitled to relief under section 87 of the Indian Act:

• Maa-nulth-aht (as that term is defined in the Maa-nulth First Nations Final Agreement)
• Tsawwassen Member (as that term is defined in the Tsawwassen First Nation Final Agreement)
• Tlicho Citizen (as that term is defined in the Tlicho Land Claims and Self-Government Agreement)
• Nisga’a Citizen (as that term is defined in the Nisga’a Final Agreement)

How does a vendor determine who is entitled to tax relief if all Indians are entitled to carry a status card but some are excluded from tax relief under section 87 of the Indian Act?

Vendors are always required to document the registry number or the band name and family number from the status card when not charging tax to an Indian where the supply meets the requirements set out in TIB B-039.

In addition, a vendor must verify if the Indian’s registry or band number matches a First Nation name or number listed later in this notice. This is a list of First Nations which have entered into a self‑government agreement that includes ending section 87 relief to their members. If the vendor is selling to an Indian who is a member of one of these First Nations, the vendor will only be able to provide tax relief if it obtains certification from the Indian member that they are not a Treaty Beneficiary of the First Nation.

The following is acceptable as certification from the Indian member:

In some cases, a vendor may sell goods or provide services on a tax-relieved basis because it has obtained a certificate from an Indian purchaser who is later found to be a Treaty Beneficiary of a First Nation that no longer benefits from tax relief. In such a case, the CRA will not assess the vendor, provided that it has acted in good faith and with due diligence, but may instead assess the purchaser for any tax not properly paid.

Amounts paid as tax in error by an Indian purchaser

An Indian purchaser who meets the conditions for tax relief, but pays an amount as GST/HST, may apply for a refund by completing form GST189, General Application for Rebate of GST/HST.

First Nations Goods and Services Tax (FNGST)

Most of the First Nations who are now subject to tax have opted to enter into tax sharing agreements with the Government of Canada. The FNGST effectively replaces the GST on supplies made on the lands of these First Nations and is payable by all individuals including Indian purchasers. There are no separate reporting requirements for FNGST.

For more information on the FNGST, and a list of the First Nations that have implemented the FNGST visit the First Nations Goods and Services Tax webpage.

First Nations with final or self-government agreements in place that provide for an end to tax relief under section 87 of the Indian Act

Maa-nulth-ahts ^{Footnote *}, resident or not in British Columbia, are no longer entitled to tax relief set out in TIB B-039.

Exception: Relief from the GST/HST, set out in TIB B-039, still applies to Maa-nulth Indian members that are not Maa-nulth Treaty Beneficiaries.

Reserve status: There are no longer any reserves on Maa-nulth First Nation Lands*.

Tsawwassen Members*, resident or not in British Columbia, are no longer entitled to tax relief set out in TIB B-39.

Exception: Relief from the GST/HST, set out in TIB B-039, still applies to Tsawwassen members that are not Tsawwassen Treaty Beneficiaries.

Reserve status: There are no longer any reserves on Tsawwassen Lands*.

Tlicho Citizens* resident or not in the Northwest Territories, are no longer entitled to tax relief set out in TIB B-039.

Exception: Relief from the GST/HST, set out in TIB B-039, still applies to Tlicho members that are not Tlicho Treaty Beneficiaries.

Reserve status: There were no reserves on Tlicho Lands*.

Nisga'a Citizens*, resident on and off Nisga'a Lands*, are no longer entitled to tax relief set out in TIB B-039. This includes Nisga'a Citizens* in the urban locals of Prince Rupert/Port Edwards, Terrace and Greater Vancouver.

Exception: Relief from the GST/HST, set out in TIB B-039, still applies to Nisga'a members that are not Nisga'a Treaty Beneficiaries

Reserve status: There are no longer any reserves on Nisga'a Lands*.

The tax exemption under section 87 of the Indian Act no longer applies when a Yukon First Nations' Final Agreement comes into effect. As a result, there are different effective dates as to when the relief described in TIB B-039 no longer applies.

Exception: Section 87 of the Indian Act still applies to Citizens* of those Yukon First Nations with a Final Agreement that are not resident in the Yukon. In addition, the remaining three Yukon First Nations (Liard, Ross River Dena Council and White River) have not completed final agreements so they and their members are still entitled to relief from the GST/HST as set out in TIB B-039.

Reserve status: For purposes of section 87 of the Indian Act, there are no longer any reserves in the Yukon. Thus, TIB B-039 has limited application in the Yukon. For more information on Yukon First Nations, see GST/HST Notice 143, Application of GST/FNGST to Yukon First Nations and their Members.

Further information