Tax exemption status changes for BC First Nations with limited partnerships
Thank you to Katherine MacNeill, OIB/OIBDC TEAM Member and Chief Financial Officer for the Osoyoos Indian Band Development Corporation
Notice for First Nations with Development Businesses
BEWARE any BC First Nations that have set up a limited partnership with a corporate general partner and a Band as the limited partner.
PST Bulletin 319, released around December 18, 2013 changed the Province’s interpretation of the tax exemption status of this type of limited partnership. It was previously exempt from PST to the extent of the Band’s ownership in the limited partnership, on goods and services delivered, (i.e., title passed) on reserve land under the conditions outlined in provincial tax bulletins.
On March 21, 2014 I made a presentation at the Spring Conference of the Aboriginal Financial Officers Association (AFOA) using PowerPoint to explain the change and to illustrate the way in which the Osoyoos Indian Band restructured its Band owned businesses to limited liability partnerships to maintain the advantages held under the previous limited partnerships. If you are in a similar position, please seek professional assistance to investigate your options. I included the names and contact information of the professionals that my Band utilized in this process since they are familiar with this matter. Chief Clarence Louie has reminded us often that we “go to school” on others and other First Nations can “go to school” on us as well.
Vancouver HR Consultant, Cori Maedel, from the Jouta Performance Group presented at the AFOA Spring Conference as well and has kindly suggested that this information might be of interest to their contacts. I am very willing that other First Nations become more aware of the issue and do any research they need to do if they are affected.
Please read the Provincial tax changes for first nations businesses presentation material and investigate further if applicable.