Kitsumkalum Agreement-in-Principle
11.
For the purposes of paragraphs 8 and 9:
a)
for greater certainty, Kitsumkalum Lands include the improvements on those lands; and
b)
an improvement is deemed to be on the land that is necessarily ancillary to the use of the
improvement.
12.
For greater certainty, the exemption from taxation in paragraph 8 does not apply to a taxpayer
other than Kitsumkalum nor does it apply with respect to a disposition of Kitsumkalum Lands
or interests in those lands by Kitsumkalum.
13.
For federal and British Columbia income tax purposes, proceeds of disposition received by
Kitsumkalum on expropriation of Kitsumkalum Lands in accordance with the Lands Chapter
will not be taxable.
Transfer of Kitsumkalum Capital
14.
A transfer under the Final Agreement of Kitsumkalum Capital and a recognition of ownership
of Kitsumkalum Capital under the Final Agreement are not taxable.
15.
For purposes of paragraph 14, an amount paid to a Kitsumkalum Member is deemed to be a
transfer of Kitsumkalum Capital under the Final Agreement if the payment:
16.
a)
reasonably can be considered to be a distribution of Capital Transfer received by
Kitsumkalum; and
b)
becomes payable to the Kitsumkalum Member within 90 days and is paid to the
Kitsumkalum Member within 270 days from the date that Kitsumkalum receives the
Capital Transfer.
For federal and British Columbia income tax purposes, Kitsumkalum Capital is deemed to have
been acquired by Kitsumkalum at a cost equal to its fair market value on the later of:
a)
the Effective Date; and
b)
the date of transfer of ownership or the date of recognition of ownership, as the case may
be.
Indian Act Tax Exemption and Transitional Exemption
17.
Before the Final Agreement, the Parties agree to negotiate transitional tax measures to address
the fact that the Indian Act will no longer apply after the Effective Date. These transitional
measures will be negotiated in a way that provides a reasonably comparable effect to
transitional tax measures in other treaties negotiated with other aboriginal groups in British
Columbia.
Tax Treatment Agreement
18.
The Parties will enter into a Tax Treatment Agreement which will come into effect on the
Effective Date.
19.
Canada and British Columbia will recommend to Parliament and the Legislature of British
Columbia, respectively, that the Tax Treatment Agreement be given effect and force of law
under federal and provincial legislation.
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