Kitsumkalum Agreement-in-Principle CHAPTER 20 - TAXATION Direct Taxation 1. The Kitsumkalum Government may make laws with respect to: a) Direct taxation of Kitsumkalum Members within Kitsumkalum Lands in order to raise revenue for Kitsumkalum Government purposes; and b) the implementation of any taxation agreement between it and Canada or British Columbia. 2. The Kitsumkalum Government law-making authority under subparagraph 1.a) will not limit the taxation powers of Canada or British Columbia. 3. Any Kitsumkalum Law made under this Chapter or any exercise of power by the Kitsumkalum Government, will be subject to and will conform with Canada’s international legal obligations respecting taxation. Tax Agreements 4. From time to time, at the request of Kitsumkalum, Canada and British Columbia, together or separately, may negotiate and attempt to reach agreements with the Kitsumkalum Government with respect to: a) the extent to which the Direct taxation law-making authority of the Kitsumkalum Government under subparagraph 1.a) may be extended to apply to Persons, other than Kitsumkalum Members, within Kitsumkalum Lands; and b) the manner in which the Kitsumkalum Government law-making authority under subparagraph 1.a), as extended by the application of subparagraph 4(a), will be coordinated with existing federal or provincial tax systems, including: i) the amount of tax room that Canada or British Columbia may be prepared to vacate in favour of taxes imposed by the Kitsumkalum Government; and ii) the terms and conditions under which Canada or British Columbia may administer, on behalf of the Kitsumkalum, taxes imposed by the Kitsumkalum Government. Real Property Tax Coordination Agreement 5. Before the Final Agreement, Kitsumkalum and British Columbia will negotiate and attempt to reach agreement on: a) Kitsumkalum’s authority to impose property taxes on Persons who are not Kitsumkalum Members in relation to those Persons’ ownership or occupation of Kitsumkalum Lands; and b) the coordination of the exercise of the Kitsumkalum taxation authority with British Columbia’s tax systems. Page 115 of 140

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