Déline First Nation Ratification of their Final Self-Government Agreement

GST/HST Notices - Notice 300
August 2016

The Déline Final Self-Government Agreement, signed by the Government of Canada, the Government of the Northwest Territories and the Sahtu Dene and Metis of Déline, represented by the Déline First Nation Band and the Déline Land Corporation, is effective as of September 1, 2016, and will establish the Déline Got’ine Government (DGG) to act in place of the Déline First Nation Band and the Charter Community of Déline.

Tax relief under section 87 of the Indian Act

The Déline First Nation band will cease to exist as an Indian band under the Indian Act. Tax relief provided to the former Band under Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians will no longer apply effective September 1, 2016.

The DGG, which was created under the Déline Final Self-Government Agreement is not a “band” under the Indian Act and will therefore not be eligible for tax relief under section 87 of the Indian Act.

With respect to Indian citizens of the Déline First Nation, the Déline Final Self-Government Agreement. provides for a transitional period during which Indian citizens of the Déline First Nation will continue to be entitled to tax relief under section 87 of the Indian Act. Where the conditions of B-039 are met, relief from the GST/HST continues to be available up to and including September 30, 2024, for the Indian citizens of the Déline First Nation. 

GST Self-Government Refund

The Déline Tax Treatment Agreement (TTA) will come into effect on September 1, 2016. The TTA provides for a 100% refund of that portion of the GST or the federal part of the HST paid on goods and services acquired by the DGG and its eligible entities provided that input tax credits are not available and the other eligibility conditions are met.

The TTA identifies the conditions under which a GST refund for self-government activities may be claimed. The DGG and its eligible entities may claim the self-government GST refund using Form GST66, Application for the GST/HST Public Service Bodies’ Rebate and GST Self-government Refund. The claim must be filed within four years after the tax was paid.

DGG tax

Effective September 1, 2016 a DGG tax will be imposed on Déline Lands. The DGG has entered into an agreement with the Government of Canada allowing it to impose a value-added tax under the Déline GST Act .

As the DGG tax is designed to work within the GST framework, no additional forms or registration will be required and vendors will simply apply the DGG tax in the same manner as the GST/HST.

The implementation of the DGG tax should have a minimal impact as GST was already payable on supplies made on Déline Lands.

Further information