Maa-nulth First Nations Final Agreement




CHAPTER 16 CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT

16.1.0 CAPITAL TRANSFER

16.1.1 Subject to 16.1.2 and 16.2.2, the Capital Transfer from Canada to each Maa-nulth First Nation will be paid in accordance with the applicable Capital Transfer Payment Plan.

16.1.2 If British Columbia or Canada acquires lands for a Maa-nulth First Nation before the Effective Date in accordance with 2.10.26, the Capital Transfer payment amounts for the Effective Date and the first three anniversaries of the Effective Date in the Capital Transfer Payment Plan for that Maa-nulth First Nation will be adjusted by deducting the amount paid for such lands in a manner described in the notes for finalizing the Capital Transfer Payment Plans.

16.2.0 NEGOTIATION LOAN REPAYMENT

16.2.1 Subject to 16.3.1, each Maa-nulth First Nation will make negotiation loan repayments to Canada in accordance with the applicable Negotiation Loan Repayment Plan.

16.2.2 Canada may set off and deduct from a payment made in accordance with 16.1.1 the amount of a repayment to be made in accordance with 16.2.1 on the same date, except to the extent that the loan repayment amount has been prepaid in accordance with 16.3.1.

16.3.0 PREPAYMENTS

16.3.1 In addition to any negotiation loan repayment amount required in accordance with 16.2.1, a Maa-nulth First Nation may make negotiation loan prepayments to Canada. All prepayments will be applied to the outstanding scheduled negotiation loan repayment amounts in consecutive order from the Effective Date. A Maa-nulth First Nation will notify Canada of a prepayment at least 30 days before the date of that prepayment.

16.3.2 The "n" anniversary for which a prepayment is to be applied is the earliest anniversary for which a scheduled negotiation loan repayment amount, or a portion thereof, remains outstanding. Any loan prepayment applied to an outstanding negotiation loan repayment amount, or to a portion thereof, is credited at its future value, as of the "n" anniversary, determined in accordance with the following formula:

Future Value = Prepayment * (1+CR) K * (1+CR*H/365)

where,

"/" means divided by;

"*" means multiplied by;

"K" is the number of complete years between the date of the prepayment and the "n" anniversary;

"H" is one plus the number of days remaining in the period between the date of the prepayment and the "n" anniversary, once the number of complete years referred to in "K" above has been deducted; and

"CR" is 4.545 percent.

16.3.3 If the future value of the prepayment exceeds the outstanding amount of the negotiation loan repayment amount scheduled for the "n" anniversary, the excess is deemed to be a prepayment made on the "n" anniversary so that the future value of the excess is applied as of the next anniversary in a manner analogous to that described in this paragraph.

16.3.4 On receipt of a loan prepayment, Canada will issue a letter to the applicable Maa-nulth First Nation setting out the amount of the prepayment received and the manner in which it will be applied.

SCHEDULE 1 - CAPITAL TRANSFER PAYMENT PLAN

Huu-ay-aht First Nations Capital Transfer Payment Plan

PAYMENT DATE

PROVISIONAL PAYMENT
AMOUNT

Effective Date

4,236,880

First anniversary of Effective Date

2,713,319

Second anniversary of Effective Date

2,713,319

Third anniversary of Effective Date

2,713,319

Fourth anniversary of Effective Date

2,341,233

Fifth anniversary of Effective Date

2,341,233

Sixth anniversary of Effective Date

2,341,233

Seventh anniversary of Effective Date

2,341,233

Eighth anniversary of Effective Date

2,341,233

Ninth anniversary of Effective Date

2,341,233

 

 

Total payments*

26,424,233

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Capital Transfer Payment Plan.

Ka:'yu:'k't'h'/Che:k'tles7et'h' First Nations Capital Transfer Payment Plan

PAYMENT DATE

PROVISIONAL PAYMENT
AMOUNT

Effective Date

3,257,135

First anniversary of Effective Date

2,295,355

Second anniversary of Effective Date

2,295,355

Third anniversary of Effective Date

2,295,355

Fourth anniversary of Effective Date

1,984,141

Fifth anniversary of Effective Date

1,984,141

Sixth anniversary of Effective Date

1,984,141

Seventh anniversary of Effective Date

1,984,141

Eighth anniversary of Effective Date

1,984,141

Ninth anniversary of Effective Date

1,984,141

 

 

Total payments*

22,048,046

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Capital Transfer Payment Plan.

Toquaht Nation Capital Transfer Payment Plan

PAYMENT DATE

PROVISIONAL PAYMENT
AMOUNT

Effective Date

1,171,010

First anniversary of Effective Date

559,707

Second anniversary of Effective Date

559,707

Third anniversary of Effective Date

559,707

Fourth anniversary of Effective Date

434,104

Fifth anniversary of Effective Date

434,104

Sixth anniversary of Effective Date

434,104

Seventh anniversary of Effective Date

434,104

Eighth anniversary of Effective Date

434,104

Ninth anniversary of Effective Date

434,104

 

 

Total payments*

5,454,755

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Capital Transfer Payment Plan.

Uchucklesaht Tribe Capital Transfer Payment Plan

PAYMENT DATE

PROVISIONAL PAYMENT
AMOUNT

Effective Date

1,213,341

First anniversary of Effective Date

768,312

Second anniversary of Effective Date

768,312

Third anniversary of Effective Date

768,312

Fourth anniversary of Effective Date

610,277

Fifth anniversary of Effective Date

610,277

Sixth anniversary of Effective Date

610,277

Seventh anniversary of Effective Date

610,277

Eighth anniversary of Effective Date

610,277

Ninth anniversary of Effective Date

610,277

 

 

Total payments*

7,179,939

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Capital Transfer Payment Plan.

Ucluelet First Nation Capital Transfer Payment Plan

PAYMENT DATE

PROVISIONAL PAYMENT
AMOUNT

Effective Date

3,262,454

First anniversary of Effective Date

2,754,599

Second anniversary of Effective Date

2,754,599

Third anniversary of Effective Date

2,754,599

Fourth anniversary of Effective Date

2,387,004

Fifth anniversary of Effective Date

2,387,004

Sixth anniversary of Effective Date

2,387,004

Seventh anniversary of Effective Date

2,387,004

Eighth anniversary of Effective Date

2,387,004

Ninth anniversary of Effective Date

2,387,004

 

 

Total payments*

25,848,275

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Capital Transfer Payment Plan.


NOTES FOR FINALIZING THE CAPITAL TRANSFER PAYMENT PLANS

These notes do not form part of this Agreement. The purpose of these notes is to enable the Parties to calculate on the Revision Date the amounts to be shown in the final version of this Schedule. Interest at a rate of 4.545% per annum beginning on Effective Date and compounded annually was used to establish the provisional payment amounts in each Capital Transfer Payment Plan.

1. In these notes,

"FDDIPI" means the Final Domestic Demand Implicit Price Index for Canada, series D100466, published regularly by Statistics Canada in Matrix 10512: Implicit Price Indexes, Gross Domestic Product or its replacement series as specified by Statistics Canada;

"Revision Date" means the date 30 days before the Effective Date, or another date if the Parties agree.

"Signing Date" means the date on which this Agreement is signed by the Parties after ratification of this Agreement by the Maa-nulth First Nations in accordance with 28.2.1.

"Transition Date" means the date 15 months after the Signing Date.

2. If the period between the Signing Date and the Effective Date is less than 15 months, on the Revision Date each provisional payment amount in the Capital Transfer Payment Plans is adjusted as follows:

provisional payment amount * M/L

where,

"/" means divided by;

"*" means multiplied by;

"L" is the value of FDDIPI for the first quarter of 2006 published by Statistics Canada at the same time that the values used in M are published; and

"M" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Revision Date.

3. If the period between the Signing Date and the Effective Date is greater than 15 months, on the Revision Date each provisional payment amount in the Capital Transfer Payment Plans is adjusted as follows:

provisional payment amount * [(P/Q) * (1 + CR) Y * (1+CR*D/365)]

where:

"Q" is the value of FDDIPI for the first quarter of 2006 published by Statistics Canada at the same time that the values used in P are published;

"P" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Transition Date;

"Y" means the number of complete years between the Transition Date and the Effective Date;

"D" is the number of days remaining in the period between the Transition Date and the Effective Date, after deducting the complete years in that period that have been taken into account in the determination of Y; and

"CR" is 4.545 percent.

The purpose of applying this paragraph is to limit the period for which the Capital Transfer is adjusted by FDDIPI to the period that ends on the date that is 15 months after the Signing Date, and to lengthen the period of which the Capital Transfer is adjusted by the calculation rate to the period between the date that is 15 months after the Signing Date and the Effective Date.

4. If British Columbia or Canada acquires lands for a Maa-nulth First Nation in accordance with 2.10.26 and 16.1.2, on the Revision Date the Capital Transfer payment amounts for the Effective Date and the first three anniversaries of the Effective Date in the Capital Transfer Payment Plan for that Maa-nulth First Nation will be adjusted by deducting the amount paid (as adjusted for inflation in the equation below), as described in the following equation. This deduction will occur after the provisional payment plan has been adjusted for inflation as described in these notes in 2 and 3 above.

T n = C n - (0.25 * R * (1+CR) n)

where,

"T n" is the Capital Transfer payment amount after adjusting for the land acquisition on the ‘n'th anniversary of Effective Date;

"C n" is the Capital Transfer payment amount before adjusting for the land acquisition on the ‘n'th anniversary of Effective Date;

"n" is the ‘n'th anniversary of Effective Date;

"CR" is 4.545 percent;

"*" means multiplied by;

"R" is as follows:

If the period between the Signing Date and the Effective Date is less than 15 months, then "R" is the amount paid by British Columbia or Canada to purchase lands in accordance with 2.10.26, multiplied by M/W,

where,

"M" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Revision Date; and

"W" is the value of FDDIPI published by Statistics Canada at the same time that the FDDIPI value above in "M" was published, for the calendar quarter immediately preceding that calendar quarter in which the land was purchased.

If the period between the Signing Date and the Effective Date is greater than 15 months, then "R" is the amount paid by British Columbia or Canada to purchase lands in accordance with 2.10.26, multiplied by:

P/V * (1 + CR) Y * (1+CR*D/365)

where,

"P" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Transition Date;

"V" is the value of FDDIPI published by Statistics Canada at the same time that the FDDIPI value above in "P" was published, for the calendar quarter immediately preceding that calendar quarter in which the land was purchased;

"Y" means the number of complete years between the Transition Date and the Effective Date;

"D" is the number of days remaining in the period between the Transition Date and the Effective Date, after deducting the complete years in that period that have been taken into account in the determination of Y; and

"CR" is 4.545 percent.

5. On the Revision Date, following the adjustment performed in accordance with either paragraph 2 or 3 of these notes, as applicable, and paragraph 4, if applicable, the Capital Transfer Payment Plans are amended to incorporate the adjusted figures and the headings in the Capital Transfer Payment Plans above are replaced by the following headings:

Huu-ay-aht First Nations Capital Transfer Payment Plan

PAYMENT DATE

PAYMENT AMOUNT

 

 

CANADA WILL PAY

Ka:'yu:'k't'h'/Che:k'tles7et'h' First Nations Capital Transfer Payment Plan

PAYMENT DATE

PAYMENT AMOUNT

 

 

CANADA WILL PAY

Toquaht Nation Capital Transfer Payment Plan

PAYMENT DATE

PAYMENT AMOUNT

 

 

CANADA WILL PAY

Uchucklesaht Tribe Capital Transfer Payment Plan

PAYMENT DATE

PAYMENT AMOUNT

 

 

CANADA WILL PAY

Ucluelet First Nation Capital Transfer Payment Plan

PAYMENT DATE

PAYMENT AMOUNT

 

 

CANADA WILL PAY

 

SCHEDULE 2 - NEGOTIATION LOAN REPAYMENT PLAN

Huu-ay-aht First Nations Negotiation Loan Repayment Plan

PAYMENT DATE

PROVISIONAL LOAN REPAYMENT AMOUNT

Effective Date

343,228

First anniversary of Effective Date

343,228

Second anniversary of Effective Date

343,228

Third anniversary of Effective Date

343,228

Fourth anniversary of Effective Date

343,228

Fifth anniversary of Effective Date

343,228

Sixth anniversary of Effective Date

343,228

Seventh anniversary of Effective Date

343,228

Eighth anniversary of Effective Date

343,228

Ninth anniversary of Effective Date

343,228

 

 

Total repayments*

3,432,280

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Negotiation Loan Repayment Plan.


Ka:'yu:'k't'h'/Che:k'tles7et'h' First Nations Negotiation Loan Repayment Plan

PAYMENT DATE

PROVISIONAL LOAN REPAYMENT AMOUNT

Effective Date

291,974

First anniversary of Effective Date

291,974

Second anniversary of Effective Date

291,974

Third anniversary of Effective Date

291,974

Fourth anniversary of Effective Date

291,974

Fifth anniversary of Effective Date

291,974

Sixth anniversary of Effective Date

291,974

Seventh anniversary of Effective Date

291,974

Eighth anniversary of Effective Date

291,974

Ninth anniversary of Effective Date

291,974

 

 

Total repayments*

2,919,740

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Negotiation Loan Repayment Plan.

Toquaht Nation Negotiation Loan Repayment Plan

PAYMENT DATE

PROVISIONAL LOAN REPAYMENT AMOUNT

Effective Date

212,504

First anniversary of Effective Date

116,553

Second anniversary of Effective Date

116,553

Third anniversary of Effective Date

116,553

Fourth anniversary of Effective Date

116,553

Fifth anniversary of Effective Date

116,553

Sixth anniversary of Effective Date

116,553

Seventh anniversary of Effective Date

116,553

Eighth anniversary of Effective Date

116,553

Ninth anniversary of Effective Date

116,553

 

 

Total repayments*

1,261,480

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Negotiation Loan Repayment Plan.

Uchucklesaht Tribe Negotiation Loan Repayment Plan

PAYMENT DATE

PROVISIONAL LOAN REPAYMENT AMOUNT

Effective Date

236,483

First anniversary of Effective Date

136,757

Second anniversary of Effective Date

136,757

Third anniversary of Effective Date

136,757

Fourth anniversary of Effective Date

136,757

Fifth anniversary of Effective Date

136,757

Sixth anniversary of Effective Date

136,757

Seventh anniversary of Effective Date

136,757

Eighth anniversary of Effective Date

136,757

Ninth anniversary of Effective Date

136,757

 

 

Total repayments*

1,467,296

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Negotiation Loan Repayment Plan.

Ucluelet First Nation Negotiation Loan Repayment Plan

PAYMENT DATE

PROVISIONAL LOAN REPAYMENT AMOUNT

Effective Date

366,504

First anniversary of Effective Date

366,504

Second anniversary of Effective Date

366,504

Third anniversary of Effective Date

366,504

Fourth anniversary of Effective Date

366,504

Fifth anniversary of Effective Date

366,504

Sixth anniversary of Effective Date

366,504

Seventh anniversary of Effective Date

366,504

Eighth anniversary of Effective Date

366,504

Ninth anniversary of Effective Date

366,504

 

 

Total repayments*

3,665,040

* This line is included for informational purposes only and the amount represents the sum of the ten capital transfer amounts described in the applicable Negotiation Loan Repayment Plan.

NOTES FOR FINALIZING THE NEGOTIATION LOAN REPAYMENT PLAN

These notes do not form part of this Agreement. The purpose of these notes is to enable the Parties to calculate on the Revision Date the amounts to be shown in the final version of this Schedule.

The provisional loan repayment amounts are based on total outstanding negotiation loans and interest accrued up to March 31, 2006. Final negotiation loan repayment amounts, including any further loans made and interest accrued after March 31, 2006, will be calculated and included in the final loan repayment schedules in accordance with the following notes.

In these notes:

"Revision Date" has the same meaning as in Schedule 1 of this Chapter.

1. Before the Revision Date, Canada and the Maa-nulth First Nations will jointly produce a document capturing the final loan and interest amounts as of the Effective Date and setting out the amounts of all the loans from Canada to the Maa-nulth First Nations, all interest accrued to date, and the relevant terms and conditions of those loans.

2. On the Revision Date, the provisional negotiation loan repayment amounts in the Negotiation Loan Repayment Plans are adjusted to final negotiation loan repayment amounts by:

a. determining the amount of the additional negotiation loans made by Canada to each Maa-nulth First Nation which were not included in the calculation of the provisional negotiation loan repayment amounts and any applicable additional interest accrued since the provisional negotiation loan and interest amounts were calculated; and

b. prorating and adjusting the additional amounts determined in accordance with paragraph 2a. for that Maa-nulth First Nation over the applicable Negotiation Loan Repayment Plan such that the amounts in the final Negotiation Loan Repayment Plans are proportional to the amounts in the provisional Negotiation Loan Repayment Plan and such that each final Negotiation Loan Repayment Plan incorporates interest on unpaid loan balances at 4.545% per annum beginning on the Effective Date and compounded annually which is the same rate of interest used to establish the provisional Negotiation Loan Repayment Plan.

3. On the Revision Date, following the adjustment performed in accordance with paragraph 2, the Negotiation Loan Repayment Plans are amended to incorporate the adjusted figures and the headings in each Negotiation Loan Repayment Plan are replaced by the following headings:


PAYMENT DATE

NEGOTIATION LOAN REPAYMENT AMOUNT




CHAPTER 17 RESOURCE REVENUE SHARING

17.1.0 PAYMENT OF RESOURCE REVENUES

17.1.1 British Columbia and Canada will jointly provide to each Maa–nulth First Nation, within 60 days of the Effective Date, a statement of the Invoiced Resource Amount for the Fiscal Year ended immediately before the Effective Date.

17.1.2 For a period of 24 years after the Effective Date, British Columbia and Canada will jointly provide to each Maa–nulth First Nation, within 60 days of each anniversary of the Effective Date, a statement of the Invoiced Resource Amount for the Fiscal Year ended immediately before that anniversary.

17.1.3 British Columbia and Canada will, within 30 days of providing statements to each Maa–nulth First Nation in accordance with 17.1.1 or 17.1.2, each pay 50% of the following amounts:

a. to Huu-ay-aht First Nations 2.45% multiplied by the Invoiced Resource Amount, provided that such amount is not:

i. less than $175,795 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter; or

ii. greater than $527,386 multiplied by Current FDDIPI divided by 2005 FDDIPI 1st Quarter;

b. to Ka:'yu:'k't'h'/Che:k'tles7et'h' First Nations 2.08% multiplied by the Invoiced Resource Amount, provided that such amount is not:

i. less than $148,982 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter; or

ii. greater than $446,947 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter;

c. to Toquaht Nation 0.50% multiplied by the Invoiced Resource Amount, provided that such amount is not :

i. less than $35,846 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter; or

ii. greater than $107,539 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter;

d. to Uchucklesaht Tribe 0.69% multiplied by the Invoiced Resource Amount, provided that such amount is not:

i. less than $49,872 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter; or

ii. greater than $149,616 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter; and

e. to Ucluelet First Nation 2.64% multiplied by the Invoiced Resource Amount, provided that such amount is not:

i. less than $189,504 multiplied by Current FDDIPI divided by 2005 FDDIPI 1st Quarter; or

ii. greater than $568,512 multiplied by Current FDDIPI divided by 2005 FDDIPI 1 st Quarter.

17.1.4 For a period of five years following the Effective Date, British Columbia and Canada will each pay $90,000 multiplied by Current FDDIPI divided by 2005 FDDIPI 2 nd Quarter to Huu-ay-aht First Nations on the same date as the payments contemplated by 17.1.3.

17.2.0 PROVINCIAL AUTHORITY ON PROVINCIAL CROWN LAND

17.2.1 Nothing in this Chapter limits the ability of British Columbia to:

a. authorize use of or Dispose of provincial Crown lands and resources in accordance with Provincial Law, policy or practices;

b. amend Provincial Law, policies or practices in relation to the use or Disposition of provincial Crown lands and resources;

c. amend Provincial Law, policy or practices in relation to the determination and collection of stumpage, rents, fees, royalties or other charges in respect of provincial Crown lands and resources, including Provincial Timber Resources; or

d. amend or eliminate the boundaries for forest revenue administration or management of forest districts or their successors,

as British Columbia may in its discretion determine from time to time.

17.2.2 Nothing in this Chapter creates an Interest in provincial Crown lands or resources in favour of any person.



CHAPTER 18 FISCAL RELATIONS

18.1.0 FISCAL RELATIONS

18.1.1 Canada, British Columbia and each Maa-nulth First Nation acknowledge that they each have a role in supporting that Maa-nulth First Nation, through direct or indirect financial support or through access to public programs and services, as provided for in the Fiscal Financing Agreement or other arrangements.

18.1.2 Every eight years, or other periods as may be agreed, each Maa-nulth First Nation, Canada and British Columbia will negotiate and attempt to reach agreement on a Fiscal Financing Agreement that will describe:

a. the Agreed-Upon Programs and Services, including recipients of those programs and services;

b. the responsibilities of each of the Maa-nulth First Nation, Canada and British Columbia in respect of the Agreed-Upon Programs and Services;

c. the funding for Agreed-Upon Programs and Services;

d. the Maa-nulth First Nation's contribution to the funding of Agreed-Upon Programs and Services from its own source revenues as determined in accordance with 18.1.4;

e. mechanisms for the transfer of funds to the Maa-nulth First Nation by Canada or British Columbia;

f. procedures for:

i. the collection and exchange of information, including statistical and financial information, required for the administration of the Fiscal Financing Agreement;

ii. dispute resolution in relation to the Fiscal Financing Agreement;

iii. accountability requirements, including reporting and audit, of the Maa-nulth First Nation;

iv. negotiating the inclusion of additional programs and services to the list of Agreed-Upon Programs and Services within the term of a Fiscal Financing Agreement;

v. addressing exceptional circumstances and emergencies;

vi. negotiating subsequent Fiscal Financing Agreements; and

g. other matters agreed to by the Maa-nulth First Nation, Canada and British Columbia.

18.1.3 In negotiating a Fiscal Financing Agreement, the applicable Maa-nulth First Nation, Canada and British Columbia will take into account:

a. the cost of providing, either directly or indirectly, Agreed-Upon Programs and Services that are reasonably comparable to similar programs and services available in other communities of similar size and circumstance in British Columbia;

b. efficiency and effectiveness, including opportunities for economies of scale in the provision of Agreed-Upon Programs and Services, which may include, where appropriate, cooperative arrangements with other governments, First Nations or existing service providers;

c. existing levels of funding provided by Canada or British Columbia;

d. the costs of operating its Maa-nulth First Nation Government;

e. prevailing fiscal policies of Canada or British Columbia;

f. location and accessibility of communities on its Maa-nulth First Nation Lands;

g. jurisdictions, authorities, programs and services assumed by the Maa-nulth First Nation Governments under this Agreement;

h. the desirability of reasonably stable, predictable and flexible fiscal arrangements;

i. changes in price and volume, which may include the number of individuals eligible to receive Agreed-Upon Programs and Services; and

j. other matters as agreed to by that Maa-nulth First Nation, Canada and British Columbia.

18.1.4 From time to time, each Maa-nulth First Nation, Canada and British Columbia will negotiate and attempt to reach agreement on the Maa-nulth First Nation's own source revenue contribution to the funding of Agreed-Upon Programs and Services contemplated by 18.1.2d., taking into account the following:

a. the capacity of that Maa-nulth First Nation to generate revenues;

b. existing own source revenue arrangements negotiated with that Maa-nulth First Nation under this Agreement;

c. prevailing fiscal policies in respect of the treatment of First Nation own source revenue in self-government fiscal arrangements;

d. that own source revenue arrangements should not unreasonably reduce incentives for that Maa-nulth First Nation to generate revenues;

e. that the applicable Maa-nulth First Nation's reliance on fiscal transfers should decrease over time as it becomes more self-sufficient; and

f. other matters as agreed to by that Maa-nulth First Nation, Canada and British Columbia.

18.1.5 In negotiating each Maa-nulth First Nation's own source revenue contribution to the funding of Agreed-Upon Programs and Services in accordance with 18.1.4, unless otherwise agreed :

a. the following are excluded from own source revenue calculations:

i. the Capital Transfer, in the manner provided for in the initial agreement in respect of own source revenues;

ii. resource revenue sharing payments made in accordance with Chapter 17 Resource Revenue Sharing, in the manner provided for in the initial agreement in respect of own source revenues;

iii. proceeds from the sale of the Maa-nulth First Nation Lands of that Maa-nulth First Nation;

iv. any federal or provincial payments in accordance with a Fiscal Financing Agreement or other agreements for programs and services with that Maa-nulth First Nation;

v. interest or income on funds received by that Maa-nulth First Nation from Canada or British Columbia for a purpose related to the implementation of this Agreement and held in a special purpose fund provided for in the initial agreement in respect of own source revenues, or as agreed to by that Maa-nulth First Nation, Canada and British Columbia from time to time, provided that the interest or income derived from the investment of funds held in the special purpose fund is used for a purpose or activity that is intended by that Maa-nulth First Nation, Canada and British Columbia to be funded from that special purpose fund;

vi. gifts or charitable donations;

vii. amounts received as compensation for specific losses or damages to property or assets;

viii. Specific Claim Settlements; and

ix. other sources agreed to by that Maa-nulth First Nation, Canada and British Columbia; and

b. own source revenue arrangements will not permit:

i. Canada to benefit from a decision of British Columbia to vacate tax room or to transfer revenues or tax authorities to that Maa-nulth First Nation; or

ii. British Columbia to benefit from a decision of Canada to vacate tax room or to transfer revenues or tax authorities to that Maa-nulth First Nation.

18.1.6 If a Maa-nulth First Nation, Canada and British Columbia do not reach agreement on a subsequent Fiscal Financing Agreement by the expiry date of an existing Fiscal Financing Agreement, that Fiscal Financing Agreement:

a. continues in effect for up to two years from its original expiry date, or for such other period of time as that Maa-nulth First Nation, Canada and British Columbia may agree to in writing; and

b. terminates on the earlier of:

i. the expiry of the extended term determined in accordance with a.; or

ii. the date of commencement of a subsequent Fiscal Financing Agreement.

18.1.7 None of the creation of each Maa-nulth First Nation Government, the inclusion of Maa-nulth First Nation Government law-making authority in this Agreement, nor the exercise of a Maa-nulth First Nation Government law-making authority creates or implies any financial obligation or service responsibility on the part of any Party, other than as described in a Fiscal Financing Agreement.

18.1.8 For greater certainty, where a Maa-nulth First Nation, Canada and British Columbia agree in the initial Fiscal Financing Agreement that Canada will provide Time Limited Federal Funding for any responsibilities of that Maa-nulth First Nation specified in that agreement and Canada duly provides the Time Limited Federal Funding, Canada has no obligation to negotiate and attempt to reach agreement on the provision of further funding for any of those responsibilities.

18.1.9 For greater certainty, where a Maa-nulth First Nation, Canada and British Columbia agree in the initial Fiscal Financing Agreement that British Columbia will provide Time Limited Provincial Funding for any responsibilities of that Maa-nulth First Nation specified in that agreement and British Columbia duly provides the Time Limited Provincial Funding, British Columbia has no obligation to negotiate and attempt to reach agreement on the provision of further funding for any of those responsibilities.

18.1.10 Any funding required for the purposes of the Fiscal Financing Agreement, or any other agreement that is reached as a result of negotiations that are required or permitted under any provision of this Agreement and that provides for financial obligations to be assumed by a Party, is subject to the appropriation of funds:

a. in the case of Canada, by the Parliament of Canada;

b. in the case of British Columbia, by the Legislature; or

c. in the case of a Maa-nulth First Nation, by its Maa-nulth First Nation Government.



CHAPTER 19 TAXATION

19.1.0 DIRECT TAXATION

19.1.1 Each Maa-nulth First Nation Government may make laws in respect of:

a. Direct taxation of Maa-nulth First Nation Citizens of the applicable Maa-nulth First Nation within the Maa-nulth First Nation Lands of that Maa-nulth First Nation in order to raise revenue for that Maa-nulth First Nation Government's purposes; and

b. the implementation of any taxation agreement entered into between the applicable Maa-nulth First Nation and Canada or British Columbia.

19.1.2 The law-making authority of a Maa-nulth First Nation Government provided for in 19.1.1a. does not limit the taxation powers of Canada or British Columbia.

19.1.3 Notwithstanding any other provision of this Agreement, any Maa-nulth First Nation Law made under this Chapter or any exercise of power by a Maa-nulth First Nation Government, is subject to and will conform with International Legal Obligations respecting taxation, and 1.7.1 to 1.7.5 do not apply in respect of International Legal Obligations respecting taxation.

19.2.0 TAXATION POWERS AGREEMENTS

19.2.1 From time to time, at the request of a Maa-nulth First Nation, Canada and British Columbia, together or separately, may negotiate and attempt to reach agreement with that Maa-nulth First Nation respecting:

a. the extent that the Direct taxation law-making authority of its Maa-nulth First Nation Government under 19.1.1a. may be extended to apply to Persons, other than the Maa-nulth First Nation Citizens of the applicable Maa-nulth First Nation, within the Maa-nulth First Nation Lands of that Maa-nulth First Nation; and

b. the coordination of its Maa-nulth First Nation Government's taxation of any Person with federal or provincial tax systems.

19.2.2 Notwithstanding the provisions of Chapter 13 Governance, parties to an agreement contemplated by 19.2.1 may provide for an alternative approach to the appeal, enforcement or adjudication of a Maa-nulth First Nation Law in respect of taxation.

19.3.0 MAA-NULTH FIRST NATION LANDS

19.3.1 A Maa-nulth First Nation is not subject to capital taxation, including real property taxes and taxes on capital or wealth, in respect of the estate or interest of the Maa-nulth First Nation in its Maa-nulth First Nation Lands on which there are no improvements or on which there is a designated improvement .

19.3.2 In 19.3.1, "designated improvement" means:

a. a residence of a Maa-nulth First Nation Citizen;

b. an improvement, all or substantially all of which is used for a public purpose or a purpose ancillary or incidental to the public purpose, including:

i. a public governance or administration building, public meeting building, public hall, public school or other public educational institution, teacherage, public library, public health facility, public care facility, public seniors home, public museum, place of public worship, manse, fire hall, police facility, court, correction facility, public recreation facility, public park or an improvement used for Maa-nulth First Nation cultural or spiritual purposes;

ii. works of public convenience constructed or operated for the benefit of Maa-nulth First Nation Citizens, occupiers of Maa-nulth First Nation Lands or persons visiting or in transit through Maa-nulth First Nation Lands, including public utility works, public works used to treat or deliver water or as part of a public sewer system, public roads, public bridges, public drainage ditches, traffic signals, street lights, public sidewalks and public parking lots; or

iii. similar improvements;

c. an improvement that is used primarily for the management, protection or enhancement of a natural resource, including a Forest Resource or a fishery or wildlife resource, other than an improvement that is used primarily in harvesting or processing a natural resource for profit; and

d. Forest Resources and forest roads.

19.3.3 In 19.3.2b., "public purpose" does not include the provision of property or services primarily for the purpose of profit.

19.3.4 For the purposes of 19.3.1 and 19.3.2:

a. for greater certainty, Maa-nulth First Nation Lands include the improvements on those lands; and

b. an improvement is deemed to be on the land that is necessarily ancillary to the use of the improvement.

19.3.5 For greater certainty, the exemption from taxation in 19.3.1 does not apply to a taxpayer other than the Maa-nulth First Nation nor does it apply in respect of a disposition of Maa-nulth First Nation Lands or interests in those lands by the Maa-nulth First Nation.

19.3.6 For federal and provincial income tax purposes, proceeds of disposition received by a Maa-nulth First Nation on expropriation of Maa-nulth First Nation Lands in accordance with Chapter 2 Lands are not taxable.

19.4.0 TRANSFER OF MAA-NULTH FIRST NATION CAPITAL

19.4.1 A transfer under this Agreement of Maa-nulth First Nation Capital and a recognition of ownership of Maa-nulth First Nation Capital under this Agreement is not taxable.

19.4.2 For purposes of 19.4.1, an amount paid by a Maa-nulth First Nation to its Maa-nulth-aht is deemed to be a transfer of Maa-nulth First Nation Capital under this Agreement if the payment:

a. reasonably can be considered to be a distribution of a Capital Transfer received by the Maa-nulth First Nation; and

b. becomes payable to the Maa-nulth-aht within 90 days and is paid to the Maa-nulth-aht within 270 days from the date that the Maa-nulth First Nation receives the Capital Transfer.

19.4.3 For federal and provincial income tax purposes, Maa-nulth First Nation Capital of a Maa-nulth First Nation is deemed to have been acquired by the Maa-nulth First Nation at a cost equal to its fair market value on the later of:

a. the Effective Date; and

b. the date of transfer of ownership or the date of recognition of ownership, as the case may be.

19.5.0 INDIAN ACT TAX EXEMPTION AND TRANSITIONAL EXEMPTION

19.5.1 Section 87 of the Indian Act will have no application to a Maa-nulth-aht:

a. in respect of Transaction Taxes, as of the first day of the first month after the eighth anniversary of the Effective Date; and

b. in respect of all other taxes, as of the first day of the first calendar year after the twelfth anniversary of the Effective Date.

19.5.2 Subject to 19.1.1a. and 19.2.1a. and 19.5.3 to 19.5.6, as of the Effective Date, the following is exempt from taxation:

a. the interest of an Indian in Maa-nulth First Nation Lands that were an Indian Reserve or Surrendered Lands on the day before the Effective Date;

b. the personal property of an Indian situated on Maa-nulth First Nation Lands that were an Indian Reserve on the day before the Effective Date; and

c. an Indian in respect of the ownership, occupation, possession or use of any property mentioned in subparagraphs a. or b.

19.5.3 19.5.2 will cease to be effective:

a. in respect of Transaction Taxes, as of the first day of the first month after the eighth anniversary of the Effective Date; and

b. in respect of all other taxes, as of the first day of the first calendar year after the twelfth anniversary of the Effective Date.

19.5.4 19.5.2 will be interpreted to exempt an Indian in respect of a property or interest, or in respect of the ownership, occupation, possession or use thereof, in the same manner and under the same conditions in which section 87 of the Indian Act would have applied, but for this Agreement, if the property were situated on, or the interest were in, an Indian Reserve.

19.5.5 19.5.2 only applies to an Indian during the period that section 87 of the Indian Act applies to the Indian.

19.5.6 If a Maa-nulth First Nation Government imposes a tax within Maa-nulth First Nation Lands and concludes a tax agreement for that purpose with Canada or British Columbia as contemplated in 19.2.1, 19.5.2 does not apply to the extent that the Maa-nulth First Nation Government, Canada or British Columbia, as the case may be, imposes a tax that the particular taxation agreement specifies is applicable to Maa-nulth First Nation Citizens and other Indians within the Maa-nulth First Nation Lands of the applicable Maa-nulth First Nation.

19.6.0 TAX TREATMENT AGREEMENT

19.6.1 The Parties will enter into a tax treatment agreement, which will come into effect on the Effective Date.

19.6.2 Canada and British Columbia will recommend to Parliament and the Legislature, respectively, that the tax treatment agreement be given effect and force of law under federal and provincial legislation.