This is page numbers 1397 - 1454 of the Hansard for the 14th Assembly, 6th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was tlicho.

Topics

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Mr. Bargery. Ms. Lee.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Sandy Lee

Sandy Lee Range Lake

Could I ask what is the difference between tax sharing or coordination agreement versus the tax treatment agreement that the Tlicho government has with the Government of Canada?

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Ms. Lee. Mr. Bargery.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Bargery

I will take a stab at it, Mr. Chairman. Tax sharing would be when a government, for example, the Government of Canada decides to share some of their tax revenues with the Tlicho government and they can do that through the Tlicho agreement by agreement only. Tax coordination would be things like the harmonization of rates and the collection of those taxes. For example, if the Government of Canada chose to share some of its taxes with the Tlicho government, things would happen much the same way the Canadian Customs and Revenue Agency would collect those taxes through a tax coordination agreement, I believe. I think that answers the Member's question, Mr. Chairman.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Mr. Bargery. Ms. Lee.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Chairman. So far from what I am reading, I understand that the Tlicho government as a government, and being a government like any other government, will be exempt from paying taxes, but that it is not looking at, for lack of a better word, the government is not asking for exemption from GST, for example, or fuel tax or any of the consumption tax or the tax regimes that are imposed by the federal government or territorial government, or tobacco tax or payroll tax. So the citizens of Tlicho would continue to pay that tax and there is no change in that. Am I correct in that understanding? Thank you.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Ms. Lee. Mr. Bargery.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Bargery

I apologize, Mr. Chairman, I wasn't sure of what the Member was asking about the Tlicho government of which the tax treatment agreement is intended to address or whether Tlicho citizens would continue to pay taxes. If I could get that clarification, Mr. Chairman.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Mr. Bargery. Ms. Lee, could you clarify that question?

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Sandy Lee

Sandy Lee Range Lake

Thank you. This is why this tax question gets so complicated. I thought I had it pretty straight there in the beginning. I am trying to understand what this tax treatment agreement means and I have a briefing note in front of me and I am trying to verify what it is saying there. As far as I can see, it says here that the Tlicho government will be exempt from paying taxes like any other government. For example the GNWT does not pay GST and/or any taxes like that when they purchase things, so I understand that that is the same privilege that the Tlicho government will have. I guess I am seeking confirmation on that and then maybe I will ask the second question. Thank you.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Ms. Lee. Mr. Antoine.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Jim Antoine Nahendeh

Mr. Chairman, I just wanted to say that on this tax treatment agreement, Canada's practice when they enter into these tax treatment agreements with aboriginal governments, they have been doing that rather than amending the Income Tax Act every time a self-government agreement is negotiated. So in this case, the Tlicho Land Claims and Self-Government Agreement Act gives this tax treatment agreement the force of law and this is needed to provide the legal framework for recognition of the Tlicho government and its corporation under the Income Tax Act. I just wanted to say that first, so it is a way that they do it to have this in place. For income tax purposes, the Tlicho government will be treated as a public body, as a government, performing a function of government so that it will not pay taxes on income generated from performing their function as a government. Thank you.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Mr. Antoine. Ms. Lee.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Sandy Lee

Sandy Lee Range Lake

Thank you. One aspect of this agreement is the government is a tax paying agent but the other thing has to do with the Tlicho government as a government, and like any other government it is going to have taxing powers on the citizens. As well, the Tlicho government is in a negotiation with the Canadian government to do some sort of tax sharing or getting some of its tax shares so that they could have the money to run their government. So I want to know what is the picture down the road under this agreement? Is the Tlicho government looking at asking for some of the GST money or income tax money that is coming out of the GNWT or the NWT or any consumption taxes that the GNWT is collecting or the Canadian government is collecting and is the Tlicho government going to be looking for their share of that tax revenue? So I guess that is a pretty straightforward question. Thank you.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Ms. Lee. Mr. Bargery.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Bargery

Thank you, Mr. Chairman. As I said yesterday, the agreement is permissive in allowing for tax sharing agreements with either the Government of the Northwest Territories or the Government of Canada. We are not in negotiations with the Tlicho at this time for the sharing of taxes. We understand that the Government of Canada is with respect to income tax and perhaps GST. I don't know and I can't say today if the Tlicho will ask in the future, but they can. The agreement allows for that, but for such an agreement it does not obligate it. Thank you, Mr. Chairman.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Mr. Bargery. Ms. Lee.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

Sandy Lee

Sandy Lee Range Lake

Thank you. Under this agreement does the power for the Tlicho government to get into tax sharing or a tax sharing agreement with the federal government, do they have to make the NWT government a part of negotiating a partnership or could that agreement be negotiated and agreed upon just between the Tlicho government and the Government of Canada?

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1445

The Chair

The Chair Paul Delorey

Thank you, Ms. Lee. Mr. Bargery.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

Bargery

With respect to a tax sharing agreement that could be a bilateral agreement to do with federal taxes, Mr. Chairman, I believe that is the discussion that is underway, it is a bilateral discussion. Thank you, Mr. Chairman.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

The Chair

The Chair Paul Delorey

Thank you, Mr. Bargery. Clause 8. Agreed?

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

Some Hon. Members

Agreed.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

The Chair

The Chair Paul Delorey

Clause 9. Agreed?

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

Some Hon. Members

Agreed.

Bill 34: Tlicho Land Claims And Self-government Agreement Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1446

The Chair

The Chair Paul Delorey

Clause 10. Agreed?