Bill C-28

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	Coming into Force and Application
	59. For the purposes of applying the provisions of the Customs Act and the Excise Tax Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this Act had been assented to on June 18, 2002.
	60. (1) Section 45 is deemed to have come into force on June 18, 2002. For greater certainty, the Customs Tariff, as amended by section 45, is further amended by section 346 of the Excise Act, 2001 on the coming into force of that section 346, regardless of whether that coming into force occurs before or after this Act is assented to.
	(2) Sections 46 to 54 come into force or are deemed to have come into force on the day that is the earlier of the day on which this Act is assented to and the day on which Part 3 of the Excise Act, 2001 comes into force.
	(3) Sections 55 to 58 are deemed to have come into force on June 18, 2002. For greater certainty, the Excise Tax Act, as amended by those sections, is further amended by sections 368 and 390 of the Excise Act, 2001 on the coming into force of those sections 368 and 390, regardless of whether that coming into force occurs before or after this Act is assented to.
	PART 8
	AMENDMENTS RELATED TO EXCISE TAX ON FUEL AND TO THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX
R.S., c. E-15	Excise Tax Act
	*61. (1) Section 23.4 of the Excise Tax Act* is amended by adding the following after subsection (2):**
Where excise tax not payable on diesel-alcohol	(3) Where diesel fuel has been blended with alcohol to produce a diesel-alcohol fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-alcohol fuel that is equal to the percentage by volume of alcohol in the fuel.
	(2) Subsection (1) is deemed to have come into force on February 19, 2003.
	62. (1) The Act is amended by adding the following after section 23.4:
Definition of ``bio-diesel fuel''	23.5 (1) In this section, ``bio-diesel fuel'' means a diesel fuel that is produced from waste materials, or feedstocks, of biological origin and not from petroleum, natural gas or coal.
Excise tax not payable on bio-diesel fuel	(2) The excise tax imposed under section 23 on diesel fuel is not payable on bio-diesel fuel.
Where excise tax not payable on bio-diesel blended with diesel	(3) Where diesel fuel has been blended with bio-diesel fuel to produce a diesel-bio-diesel fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-bio-diesel fuel that is equal to the percentage by volume of bio-diesel fuel in the fuel.
	(2) Subsection (1) is deemed to have come into force on February 19, 2003.
	63. (1) Section 68.1 of the Act is amended by adding the following after subsection (2):
Exception	(3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.
	(2) Subsection (1) applies in respect of any application for a payment under section 68.1 of the Act received by the Minister of National Revenue after February 17, 2003.
1990, c. 45, s. 18	64. (1) Section 5 of Part III of Schedule V to the Act is replaced by the following:
	5. A supply made by a school authority to a person other than another school authority of a service of transporting elementary or secondary school students to or from a school that is operated by a school authority.
	(2) Subsection (1) is deemed to have come into force on December 17, 1990.
	(3) If the amount of a school authority's net tax for a reporting period determined under the Act as amended by subsection (1) is different from the amount that would be the authority's net tax for the period if that subsection were not enacted, and the Minister of National Revenue has assessed the net tax for the period, the Minister may reassess the net tax or an amount payable by the authority under section 230.1 of the Act to take into account that difference, on or before the later of the day that is one year after the day on which this Act is assented to and the last day of the period otherwise allowed under section 298 of the Act for making the reassessment, despite that section and despite any decision of a court in respect of that reporting period of the authority that is rendered after December 21, 2001.
1997, c. 10, s. 115(1)	65. (1) Section 21 of Part VI of Schedule V to the Act is replaced by the following:
	21. A supply of a municipal service, if
	(a) the supply is
	(i) made by a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area, or
	(ii) made on behalf of a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area and that is not the government or municipality;
	(b) the service is
	(i) one which the owner or occupant has no option but to receive, or
	(ii) supplied because of a failure by the owner or occupant to comply with an obligation imposed under a law; and
	(c) the service is not one of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner.
	(2) Subsection (1) is deemed to have come into force on December 17, 1990 except that, in applying section 21 of Part VI of Schedule V to the Act, as enacted by subsection (1), to supplies for which all of the consideration becomes due or is paid before April 24, 1996, it shall be read without reference to subparagraph (b)(ii).
2002, c. 22	Consequential Amendment to Excise Act, 2001
	*66. (1) Section 377 of the Excise Act, 2001* is replaced by the following:**
2000, c. 30, s. 12(1)	377. Subsection 68.1(2) of the Act is repealed.
	(2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day before the day on which section 377 of the Excise Act, 2001 comes into force and the day on which this Act is assented to.
	PART 9
	FIRST NATIONS GOODS AND SERVICES TAXES
	First Nations Goods and Services Tax Act
	*67. (1) The First Nations Goods and Services Tax Act* is enacted as follows:**
	An Act respecting first nations goods and services tax
	SHORT TITLE
Short title	1. This Act may be cited as the First Nations Goods and Services Tax Act.
	INTERPRETATION
Definitions	2. (1) The definitions in this subsection apply in this Act.
``administrati on agreement'' « accord d'application »	``administration agreement'' means an agreement referred to in subsection 5(2).
``authorized body'' « organe autorisé »	``authorized body'', of a first nation, means the body of the first nation that has the authority to enter into an administration agreement.
``band'' « bande »	``band'' has the meaning assigned by subsection 2(1) of the Indian Act.
``governing body'' « corps dirigeant »	``governing body'' means the body of a first nation that is identified opposite the name of the first nation listed in the schedule.
``imported taxable supply'' « fourniture taxable importée »	``imported taxable supply'' has the meaning assigned by section 217 of the Excise Tax Act.
``input tax credit'' « crédit de taxe sur les intrants »	``input tax credit'' has the same meaning as in Part IX of the Excise Tax Act.
``lands'' « terres »	``lands'', of a first nation, means the lands that are described opposite the name of the first nation listed in the schedule.
``Minister'' « ministre »	``Minister'' means the Minister of Finance.
``net tax'' « taxe nette »	``net tax'' has the same meaning as in Part IX of the Excise Tax Act.
``Part IX of the Excise Tax Act'' « partie IX de la Loi sur la taxe d'accise »	``Part IX of the Excise Tax Act'' includes Schedules V to X to that Act.
``reserve'' « réserve »	``reserve'' has the meaning assigned by subsection 2(1) of the Indian Act.
Expressions defined in s. 123(1) of the Excise Tax Act	(2) Unless a contrary intention appears, words and expressions used in this Act have the meanings assigned by subsection 123(1) of the Excise Tax Act.
Mobile home or floating home	(3) A mobile home or floating home is deemed to be tangible personal property for the purposes of applying the provisions of this Act and any first nation law, as defined in subsection 11(1) or 12(1), in respect of the bringing of tangible personal property onto the lands of a first nation.
Application of deeming rules	(4) If a provision of Part IX of the Excise Tax Act deems certain circumstances or facts to exist, those circumstances or facts are deemed to exist for the purposes of determining the matters in respect of which a first nation may enact a first nation law, as defined in subsection 11(1) or 12(1).
	APPLICATION OF OTHER ACTS OF PARLIAMENT
Section 87 of Indian Act and similar provisions	3. (1) The obligation to pay tax or any other amount that is required to be paid under a first nation law, as defined in subsection 11(1) or 12(1), applies despite the application of the exemption under section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.
Subsection 4(1) applies despite any other Act of Parliament	(2) The governing body of a first nation listed in the schedule may enact a law under subsection 4(1) that imposes a tax despite any other Act of Parliament that limits the authority of the first nation to enact a law that imposes a tax.
Binding on Her Majesty	(3) If a provision of Part IX of the Excise Tax Act is binding on Her Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 11(1) or 12(1), and any provision of the first nation law that corresponds to that provision of that Part, are so binding for the purposes of that law.
	FIRST NATION GOODS AND SERVICES TAX LAW
Authority to impose tax	4. (1) Subject to this section, the governing body of a first nation that is listed in the schedule and that is a band or has the power to enact laws that has been recognized or granted under any other Act of Parliament or under an agreement that has been given effect by any other Act of Parliament may enact a law that imposes
	(a) a tax in respect of a taxable supply made on the lands of the first nation;
	(b) a tax in respect of the bringing of tangible personal property onto the lands of the first nation from a place in Canada; and
	(c) a tax in respect of an imported taxable supply made on the lands of the first nation.
Supply made on lands	(2) A supply, other than an imported taxable supply, is made on the lands of a first nation only if at least one of the following conditions is met:
	(a) if the lands of the first nation were a participating province, a provision of Part IX of the Excise Tax Act would deem the supply to be made in that participating province if
	(i) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province, and
	(ii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces; or
	(b) tax under Part IX of the Excise Tax Act is not payable in respect of the supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.
Supply of specified motor vehicle on lands	(3) Despite subsection (2), for the purposes of paragraph (1)(a), a supply of a specified motor vehicle by way of lease, licence or similar arrangement under an agreement under which continuous possession or use of the vehicle is provided for a period of more than three months is made on the lands of a first nation only if
	(a) in the case of a recipient who is an individual, the recipient ordinarily resides on those lands at the time the supply is made; and
	(b) in the case of a recipient who is not an individual, the ordinary location of the vehicle, determined for the purposes of Schedule IX to the Excise Tax Act at the time the supply is made, is on those lands.
Imported taxable supply made on lands	(4) An imported taxable supply is made on the lands of a first nation only if at least one of the following conditions is met:
	(a) tax would be payable in respect of the imported taxable supply under subsection 218.1(1) of the Excise Tax Act if
	(i) the lands of the first nation were the particular participating province referred to in that subsection,
	(ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province,
	(iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and
	(iv) the recipient of the supply were not a selected listed financial institution; or
	(b) tax under Part IX of the Excise Tax Act is not payable in respect of the imported taxable supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.
Bringing of property onto lands	(5) Subject to subsection (6), a tax in respect of the bringing of property onto the lands of a first nation by a person shall be imposed under a law of the first nation enacted under subsection (1) only if the property was last supplied to the person by way of sale at a time when an administration agreement was in effect in respect of that law and tax would have been payable under Part IX of the Excise Tax Act in respect of the supply otherwise than at the rate of zero but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.
Exception	(6) A tax in respect of the bringing of property onto the lands of a first nation by a person shall not be imposed if
	(a) tax became payable by the person in respect of the property under any first nation law, as defined in subsection 11(1) or 12(1), or section 212 of the Excise Tax Act before the property is brought onto the lands of the first nation; or