FAQs Archive - Page 17 of 17 - K'ómoks First Nation

Q: So, we will be triple taxed?

No, we will not be triple taxed. The tax regimes will be harmonized. When we tax, other government will not apply the same tax.

Q: How long before tax goes into effect after treaty?

Under the old treaty model, the K’omoks First Nation would collect the sales tax, property tax and other tax revenues, so there would no net loss, but members would pay taxes to the Nation. We are currently in negotiations with a group First Nations in Stage 5 of the BC Treaty Process and the Department of Finance to maintain the existing tax exemption. The group has developed a “principled approach”: All individuals keep their personal tax exemption Modern Treaty status Indians should not be treated differently Because Treaty Settlement Lands will no longer be “Indian Reserves”, the exemption will no longer apply on TSL, subject to a 50-year phase out period But the status Indian members of Modern Treaty Nations can use their exemption on other Indian reserves. Nation to collect GST, PST, Property tax, Income tax etc. from those who are taxable Our position has not been accepted and Canada has stated they are not in favour of the proposal. However, it will likely be a longer phase out period than the original 8-12 year phase out time. With respect to other matters, as you will continue to be a status Indian, you will be eligible for the same types of programmes and services that other status Indians are entitled to. This includes uninsured health benefits, education benefits and housing benefits currently offered to status Indians from the Department.

Why, if it is no longer K’ómoks land after treaty, are there taxes?

RTC_Admin2021-05-20T19:17:45+00:00

First of all, it is not K’ómoks land right now. It belongs to Canada and we are allowed to use it, as set out in the Indian Act. After treaty, we will own the land. Most of the Lands will not be taxable, as they will remain with the K’ómoks First Nation. Those lands that become owned by individuals will be taxed because they will own them. So, with treaty, two things will change the taxability of K’ómoks members: There would no longer be “Indian Reserves”. The land becomes Treaty Settlement Land (TSL), which we own. The Taxation chapter says that [...]

Why, if it is no longer K’ómoks land after treaty, are there taxes?RTC_Admin2021-05-20T19:17:45+00:00

So, we will be triple taxed?

RTC_Admin2021-05-20T19:17:57+00:00

Taxes will be payable on earned income (employment and investment), sales taxes (GST/PST) and property tax. If you are on Social Assistance you do not pay income tax, however you most likely already pay sales tax on your purchases.

So, we will be triple taxed?RTC_Admin2021-05-20T19:17:57+00:00

For taxes being collected after treaty by KFN, how is that enforced if people do not pay? Is it determined by us, and will it be supported by government?

RTC_Admin2021-05-20T19:18:39+00:00

The K’ómoks First Nation will enforce the property tax laws. Other tax laws will be enforced through agreements with Canada and British Columbia. Canada and British Columbia will collect the income tax and sales tax for us, and transfer it to us, after we pass a law authorizing them to do so. They will be the collection and enforcement agents for us.

For taxes being collected after treaty by KFN, how is that enforced if people do not pay? Is it determined by us, and will it be supported by government?RTC_Admin2021-05-20T19:18:39+00:00

How long before tax goes into effect after treaty?

RTC_Admin2021-08-26T19:00:48+00:00

The timing for removal of the tax exemption begins after the Effective Date of a treaty, which is probably about five years from now. The tax exemption expires for income tax 12 years after the Effective Date, and for sales tax it will be eight years after the Effective Date.

How long before tax goes into effect after treaty?RTC_Admin2021-08-26T19:00:48+00:00