For Aboriginal law practitioners in Ontario, navigating the fiscal landscape for First Nations clients often begins and ends with section 87 of the Indian Act, R.S.C., 1985, c. I-5. While crucial, its exemptions are limited and focused more on reserve. The real story of modern First Nations governance, however, is being written through the exercise of inherent tax authority. This shift from tax exemption to tax jurisdiction is a powerful tool for self-determination, and lawyers must be equipped to guide their clients through the evolving frameworks available.
The Limitations of Section 83
The traditional starting point, s. 83 of the Indian Act, grants bands limited power to levy taxes for local services. However, this highly paternalistic framework, requiring extensive ministerial oversight, makes it an unattractive and rarely used option. As one expert noted, it’s been a very long time since a First Nation opted to start taxation through this outdated system. The future lies in more substantial, modern agreements.