January 2018
Defining a First Nations fiscal relationship with the Crown
Federal Minister of Justice: “We all need to continue to be strong proponents of change”
The FNTC has long championed the notion that a new fiscal relationship for First Nations should be built on a foundation of clear government powers and authorities that are not financed by transfers, but are instead financed by a core of clear revenue authorities.
On October 13, 2017, as part of regional engagements lead by a member of the AFN Chief’s Committee on Fiscal Relations, Chief David Jimmie of Squiala First Nation, First Nations in BC participated in a second province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown, building on the work, input and information shared at the initial dialogue session hosted by the First Nations Summit in June 2017. The meeting was also open to delegates from across Canada.
Many First Nations leaders delivered presentations to delegates on working together to create substantive change for Indigenous communities.
Harold Calla of the First Nations Financial Management Board reflected on the problem facing First Nations in Canada, “What happened in colonization is that we were marginalized and frozen in time. We were not allowed to evolve and build the capacities as other modern-day governments have. The majority of our communities are only familiar with transfer payment systems and as service delivery vehicles. What is thought of as self-government is actually self-administration of programs and services.”
FNTC’s Chief Commissioner C.T. (Manny) Jules shared his perspective, “If we’re going to have a level playing field as I said last June, we want the same deal that the federal and provincial governments gave themselves at the time and at the beginning and the birth of this country.”
“They divided up the land, put us on reserves and proceeded to exploit all the bounty of the land. And what do we do? We ask for transfers. Transfers are a nice way to say we’re dependent on somebody else. What we want is ultimately our own jurisdiction that extends beyond the postage stamp reserves that we live in. We have to be able to have our own jurisdiction.”
“We have all the differences like communities where I come from and other communities that are remote. How do we begin to overcome those differences? Tecumseh, one of my cultural heroes, said a single twig breaks but a bundle of twigs is strong. And that’s what we’ve been able to demonstrate here in British Columbia. Without the involvement of the Union, the Summit and the BCAFN, the whole approach to fiscal relations isn’t going to happen. We have to do it together.”
“For the smaller communities, national institutions are critically important because what we can do as a national institution is create standards and models that you would be able to assume at the local level. Not taking away any of your jurisdiction because I firmly believe all of our institutions are designed to facilitate your jurisdiction as opposed to the jurisdiction of the institutions.”
Canada’s Minister of Justice and Attorney General, Jody Wilson-Raybould delivered a keynote address, stating, “Everyone in this room shares the same values and we all have the same goal of ultimately improving the lives of our people back home in our communities.”
“We are arguably in the best position that we could be, the best position that we have been in in a long time, perhaps forever, to do something truly transformative about advancements of rights and on a scale that we haven’t previously known.”
“Moving forward, what we do together in partnership over the coming months and years will continue to lay the groundwork for truly changing the way Canada is governed, and the place of Indigenous people and our nations within Canada”
“We are in this place today because of all of you, because of your vision and the work that so many of you have done to get us to this point. It has been through your tenacity, your ingenuity, your leadership that many First Nations have already been able to begin to break through the most insidious of fiscal and government’s constraints that have inhibited Indigenous growth and potential and for you to have taken significant steps on the road to self-determination and self-government. But as we all know, more needs to be done.”
“If I can be so bold, and in my mind, today’s conference is all about planning, about being strategic, being progressive, being the trailblazers I know you all are. As Manny Jules likes to say, being on the bleeding edge of change. I think we can say we are no longer on the edge, rather we are now in the centre of the transition our country is going through to fully implement UNDRIP, to give meaning to s. 35 and to implementing the inherent right of self-government, creating opportunity and supporting positive change in communities.”
“We all need to continue to be strong proponents for change. To continue to be courageous and take bold steps.”
At the end of November, Chief Jimmie completed a report summarizing the input gathered from the regional engagement sessions and presented it to the Assembly of First Nations Special Chiefs Assembly.
In his presentation to the chiefs in assembly, Chief Jimmie said, “As part of the chief’s committee on fiscal relations, we’ve opened the door to dialogue amongst our people. Throughout the process, each of our provinces and territories had a responsibility to go out to the communities and do some regional engagement.”
“In BC, we’re looking at jurisdiction and we’re looking at expanding tax powers, those were common themes we heard. We’re looking at these long-term commitments on funding and transfers. But how do we enshrine those in legislation? That’s the kind of commitment and true nation-to-nation relationship that we’re looking for.”
BC First Nations will continue to advance the fiscal principles they have adopted as the foundation for a new fiscal relationship. First Nations, the fiscal institutions and other First Nations organizations are committed to working together on options and recommendations.
The First Nations Tax Commission will continue to advocate for a fiscal relationship that is based on First Nation revenue jurisdiction.
September 2017
Westbank First Nation: Using property tax revenues to build a vibrant future
Recently Clearing the Path had the opportunity to meet with Ernest Jack, surveyor of taxes for Westbank First Nation (WFN) to discuss how property tax revenues are helping the First Nation achieve community visions. Westbank First Nation has a long taxation history under a local government services model used by many municipalities. Adapting this local government services model into a hybrid model proved a wise decision and WFN is now able to direct tax dollars to services and infrastructure that offer the most benefit to all members of the community.
In 1990, taxation generated $750,000 in revenues. They currently estimate revenues for the 2017 – 2018 taxation years will approach $14 million. One of the pivotal points for change in the community was the decision to sign a self-government agreement in 2005. This helped to increase tax revenues as the Self-Government Agreement provided certainty to investors with clear guidelines regarding business practices, leasing agreements, tax rates, and what they can expect in return from WFN in doing business.
In 2005, Westbank’s assessments on commercial values were $39 million; commercial values now top $380 million. Today, WFN is currently rank 58th among BC municipalities with a total assessments worth of $1.6 billion. They have over 400 businesses on WFN land including Home Depot, Canadian Tire, Walmart, Superstore and three Tim Hortons. The Westbank First Nation also has a strong aboriginal sector of 60 businesses including many artists, a trucking company, general construction company and restaurants such as Kekuli Café Coffee and Bannock.
The core to successfully administering the taxation revenue lies with WFN working closely with the Westbank First Nation Tax Advisory Council. The advisory council reviews tax administration budgets, including recommendations to the Chief and Council regarding tax laws and amendments. They also play a leading role in the preparation of the local government services budget, which sets property taxation rates and distribution of tax dollars. The council prioritizes funds towards worthwhile endeavours in education, public works, recreation, programming, development and administration.
Recent projects include new sidewalks, the sports court, repaving, water system upgrades, the Lakeside trail, landscaping and equipment. However, the crowning glory is the new Youth Centre opened in December 2016.
The concept for the Youth Centre began in 2012. Rapid community growth filled the gymnasium, soccer fields and ball parks to capacity. Demographics indicated a young Westbank membership, and many young families in the area. The Chief and Council approached the Advisory Council and proposed the new facility to accommodate the young demographic. They recognized an investment in youth forges strong leaders, creates a healthy community, and guides the Nation and all residents towards its long-term goals.
The 13,000 square foot Youth Centre is now a place for youth to explore leadership opportunities and enjoy a healthy, active lifestyle. The $5.5 million facility features a learning garden, outdoor kitchen, amphitheatre and green heating and cooling systems. Eventually, the centre will house ten offices and multi-use areas. It will also provide youth programming and mentoring space for Elders to interact with youth.
Of course, the core of a successful, growing community relies on other considerations too. Planning, development, maintenance, health and safety are also important. The upcoming budget includes monies to safeguard the environment, develop the lands wisely, and service the infrastructure that provides WFN residents with comfortable lifestyles. An additional $1.9 million provides law enforcement, fire protection services, and residential tenancy needs.
Westbank First Nation continues to look ahead. Every year the annual budget sets aside money in a reserve for contingencies and capital projects. It also allocates money towards the complex administrative tasks necessary for all growing communities.
Managing their tax jurisdiction continues to open doors. Prudent development, effective management, and strong leaders create a worthwhile and sustainable community. Money from taxation funds transforms worthwhile ideas into reality, creates community, and ensures a strong, happy Nation.
Tulo student profile: Delyla Daniels
Delyla Daniels is a member of the Tk’emlúps te Secwépemc (TteS) nation, sits as president of the Kamloopa Powwow Society, a member of the Sk’elep School Parents Advisory Council and works as leasing agent for band corporations.
Delyla is currently taking a Certificate in First Nation Tax Administration (CFNTA), which is helping her with best practices, in-depth knowledge, and practical training. Recently Clearing the Path had the opportunity to sit down with Delyla to learn more about her experience as a tax administrator and as a student at the Tulo Centre of Indigenous Economics.
How did you first learn about the Tulo Centre and its programs?
I have worked for the nation for several years and had some experience with taxation. However, I realized taxation is only part of the economic picture, so originally, I enrolled in Tulo’s Applied Economics program on the advice of two of my colleagues who are Tulo graduates.
How does your experience at Tulo relate to your work at Tk’emlups te Secwépemc?
I believe a fear of taxation is counter-productive to our communities. We need to look at economic development to build our nation through long-term planning and provide the best possible services to all TteS members. I think if we look back historically, we had community gardens that were used to help everyone, even those less fortunate. In a way, this could be a form of taxation.
Having said this, we must understand how to do things properly as the nation moves forward and as communities delve into exercising their tax jurisdiction, the need for education and practical training becomes crucial.
What has been the most valuable aspect about the program for you so far?
The Tulo program has offered me a way to integrate tax knowledge into my background in land management, individual lease holdings, and has helped me look at the bigger picture of developmental strategies for a stronger future for TteS members. I think I have gained a stronger understanding of how a properly administered tax system will increase economic potential and build infrastructure.
How does taxation fit into your community’s future?
Well here in Tk’emlúps, we have seen the direct impact that taxation has brought to our community since its inception. Through the creation of the Powwow Arbor, the ability to build infrastructure, paved roads, street lights, fire protection and good drinking water, and most importantly, the ability to create meaningful jobs. These are just a few of the benefits that I have seen come to fruition through taxation that other communities may not enjoy without own source revenue. We are not tied solely to funding agreements and we can implement the communities’ vision and fund projects and services that unite the people culturally, spiritually, and socially.
Do you have any final thoughts?
First and foremost, the Tulo program is essential to a successful tax implementation for any community thinking of undertaking such an initiative. As well I think like many of my classmates going back to school hasn’t been the easiest with a family at home and full time work. However, I am fortunate in that the TteS nation invest in their employees, because they know education ensures a strong future.
FMA First Nations and Institutions mark 10 years of progress
July 2017 marks the FMA institutions’ 10th year of operations for the First Nations Fiscal Management Act (FMA). The First Nations led FMA has been instrumental in establishing jurisdiction and creating new fiscal resources for First Nations. It has helped redefine the relationship between First Nations and other governments.
The Act enables First Nations to participate more fully in the Canadian economy, become less dependent on government services and improve local economies through increased employment and business development.
The First Nations Fiscal and Statistical Management Act (FSMA) came into force with all-party support in 2006 establishing the three fiscal institutions: The First Nations Finance Authority (FNFA), the First Nations Financial Management Board (FMB), the First Nations Tax Commission (FNTC) and the First Nations Statistical Institute (FNSI). The Act was amended to form the FMA when FNSI ceased operations.
To mark the operational milestone, the institutions are planning a national meeting for all FMA First Nations in the spring of 2018. The meeting aims to showcase the successes participating FMA First Nations have experienced. It will also create a platform to engage in dialogue, re-establish the vision for the future of the FMA and consolidate support for expanded jurisdiction and other important legislative and operational changes.
Since 2007, 220 First Nations have voluntarily joined the FMA. Participating First Nations have used the tools created by the FMA to bring investment to their lands, improve the values of property, create employment opportunities, develop own source revenues and improve local services, housing and infrastructure.
FNTC Chief Commissioner C.T. (Manny) Jules reflected on the impact of the FMA:
“In November 1969, as a 17-year-old I attended a meeting where all but four First Nation communities in British Columbia came to Kamloops to reject the proposed federal assimilation policy known as the White Paper. I listened as our leaders spoke of their vision to restore our nations, build our economies, generate our own revenues, and become self-reliant governments within Canada. Working with First Nations from across the country, together, we have restored our jurisdiction, built Indigenous institutions and created strong, supportive legal and administration systems.”
“Tax jurisdiction is the foundation for a system of Indigenous government that allows our communities to prosper. It allows us to restore our jurisdictions. It means we can design policies and programs and build competitive infrastructure that supports the individual creativity of our members so they can escape poverty.”
Harold Calla, Executive Chair of the FMB provided this perspective:
“We have proven the theory that First Nations can collectively secure an investment grade credit rating and go to the capital markets. That was our biggest test. We continued to exercise our taxing jurisdictions and expand upon them.”
“A growing success is the reality that many First Nations want to become certified by the FMB in advance of taxing or borrowing. They may not be in a position to do either at the moment, but they are keen to develop the fiscal capacity to eventually do both. We now have one in three First Nations in Canada scheduled to the Act. It’s a pretty significant achievement.”
Since inception, the initiative to expand First Nation jurisdiction and taxation powers and support pooled borrowing has been First Nation-led. In 2002, First Nations took a major step and worked closely with the government to introduce a bill to create the First Nations Fiscal Management Act, which underwent a series of amendments before receiving royal assent in March 2005 and came into force in April 2006. The Act established First Nations fiscal powers and the institutional framework, mandates and purposes of the three institutions. The FMA has gone through evolutionary change and improvements in the past three decades as a result of input from scheduled First Nations and the fiscal institutions.
The development of the Other Revenues Regulation in 2011 opened the FMA to non-property tax debentures and allowed a variety of First Nations’ Own-Source Revenues to be leveraged into approximately $400 million in low-cost loans by 2017.
Ernie Daniels, President and CEO of FNFA remarked on the progress:
“The FMA is likely the most successful legislation for First Nations in terms of creating tangible change, such as building infrastructure and organizing First Nations under an independent, robust financial system and tax regime. It was developed and led by First Nations and is now governed and managed by First Nations, which is really important for further engagement with First Nations.”
And Joe Bevan, First Nations Finance Authority Chair said:
“I believe in these fiscal institutions. They are helping to kick the door open for some of us. The FMA institutions are trying to create economic development and wealth for our communities. We trust the institutions because the FMA has always been First Nations-led.”
Many fiscal and governance experts believe taxation is a fundamental for good governance. The FMA system provides First Nations with a voluntary means of reasserting their tax jurisdiction through real property taxation. It creates real incentive to improve transparency and accountability regarding expenditures of revenues. A key factor in governance is regulation, which is central to developing viable self-governing First Nations. The FMA system demonstrates how First Nations can structure their own regulatory regimes in the areas of property taxation, financial management and debt financing.
“We are proud of our accomplishments but we know we have just started. We have to fully utilize the tax powers we restored in 2005. We need to expand our tax jurisdictions to include tobacco, cannabis, corporate and resource taxation. We need to ensure our jurisdiction reflects aboriginal title and ownership of resources in our territories. We have been working on several proposals for legislation and institutions following our successful formula. We know it will be challenging, but I have great hope,” Chief Commissioner Jules stated.
“The institutions are currently working on advancing further amendments to the FMA.” Harold Calla said. “What is the scope of the FMA going to be? How will the FMA respond to self-government initiatives for the federal government and treaty First Nations? These are matters that are yet unresolved and we’re hopeful in the next budget implementation act, there will be the legislative amendments we have been pursuing to expand the scope and opportunity of First Nations to benefit from the Act.”
“We need to expand jurisdiction into other forms of taxation and even help the government do their job by building more infrastructure and more housing,” said Ernie Daniels. “These systems are in place to support development and because of the success we’ve had, there’s been significant interest in what else can be done under the Act.”
An independent study of the FMA and the fiscal institutions was undertaken by INAC to assess the progress of the FMA and the fiscal institutions, as well as to identify aspects of the system that might require attention in order to function more effectively.
The study concluded:
“The three organizations collectively are producing large and tangible impacts on First Nation communities, impacts in the form of new infrastructure, increased own source revenues, substantial economic development opportunities, increased independence from government, improved financial management and governance to name a few.”
“All three institutions are centres of innovation. They have developed and then implemented new approaches to taxation, access to capital markets, and regulation and have helped create solutions to deal with issues of scale. Their efforts at developing capacity among First Nations, capacity which is sustainable, is especially noteworthy. And they are currently involved in developing new approaches to resource development, taxation, economic development, infrastructure management, third party management and mechanisms for structuring a new fiscal relationship with the federal government.”
“These three institutions established by the Act are the most interesting innovation to occur over the past decade in First Nation country.”
The FMA has demonstrated that First Nations can take charge of their own affairs and in doing so, provide benefits for their communities and the country. The FMA model can and must be expanded to become an important part of a national strategy for closing the gap, improving productivity and achieving a nation-to-nation framework for reconciliation.
None of these successes would have been possible without engaged and dedicated First Nations working closely with the institutions to continue to expand First Nation jurisdiction to build strong First Nation economies.
The fiscal institutions look forward to the national meeting next spring and many more years of working together to create substantive change for our communities.
July 2017
First Nations Summit Chiefs-in-Assembly support a jurisdiction-based fiscal relationship for First Nations and the Crown
On June 7, 2017, First Nations in BC participated in a province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown. Discussion focused on the principles of a new fiscal relationship that could support stable self-government. First Nations Summit (FNS) Chiefs-in-Assembly discussed supporting and advancing the principles with the Assembly of First Nations through a resolution.
A First Nations-Crown fiscal relationship determines many things for First Nations, including jurisdiction over taxation, the ability to generate revenue and engage in revenue sharing services and the transfer amounts from other governments to ensure First Nation services are delivered to national standards.
The current fiscal relationship does not recognize sufficient First Nation tax or service jurisdiction and does not provide stable, long-term revenues to support First Nation planning, services and infrastructure at national standards. In essence, it is not a nation-to-nation relationship.
The principles of a new fiscal relationship that support stable self-government were identified and discussed during the session, including:
New relationship to reflect the United Nations Declaration on the Rights of Indigenous Peoples, in particular, Article 4
A new First Nations-Crown fiscal relationship must reflect Article 4 of the United Nations Declaration on the Rights of Indigenous Peoples: “Indigenous Peoples, in exercising their right to self-determination, have the right to autonomy or self-government in matters relating to their internal and local affairs, as well as ways and means for financing their autonomous functions.”
Expanded tax powers and clear revenue and service jurisdiction
First Nations need protected and certain tax powers and clear jurisdictions that are similar to other governments. Also needed is a legislative framework for the transfer payment system that provides autonomy and flexibility. Finally, First Nations must be consulted on any legislation from other governments that may impact the First Nations fiscal relationship.
Incentives for economic development
First Nations need broader and more certain transfers and tax jurisdictions so they are not forced into commercial enterprises to create revenue. They also need incentives to develop better quality services and seek service efficiencies. The relationship between own source revenue (OSR) and transfers must create incentives and not unduly penalize First Nations for developing their revenue base.
Revenue related to service responsibilities
First Nations should have a clearly defined bundle of service responsibilities and a related bundle of clearly defined revenue options to help meet the costs of these services. Tying specific revenue jurisdictions to specific service responsibilities leads to better services and infrastructure and supports accountability from all governments to citizens.
Comparability
First Nation jurisdictions and revenue authorities need protections comparable to the provinces and First Nations should have comparable quality and access to government services. First Nations need the revenues to be able to provide services up to the national standards in order to “catch up” and “keep up” to the quality of life enjoyed by other Canadians.
Improved statistics
The quality of and access to First Nation statistics must be improved and First Nations will need independent capacity to develop statistics to support a new fiscal relationship.
Institutional support
First Nations require our own institutions to support, protect and expand jurisdictions and for capacity development, training and advice. First Nations also require our own institutions to establish standards and tools, and carry out research, advocacy and government-to-government relationship building.
The resolution was passed and the FNS Chiefs-in-Assembly are encouraging First Nations to review and discuss these principles within their respective communities and to refine them as necessary to meet each community’s unique vision.
?Akisq’nuk First Nation implements service tax to upgrade water system infrastructure for leased properties
This past year, the ?Akisq’nuk First Nation (AFN), located in the Columbia Valley near Invermere, became the first First Nation in Canada to implement a service tax under the First Nations Fiscal Management Act. ?Akisq’nuk is part of the Ktunaxa nation and is home to 300 members in the Columbia Valley, near Columbia Lake. The First Nation was one of the first to enter the FMA with laws developed in 2008. The new service tax will cover the cost of the water system infrastructure to a leased section of AFN’s lands named Indian Beach Estates.
“This is great for both the community and our taxpayers. Being the first First Nation in Canada to implement a service tax law, it’s been a learning process for us and we’re excited about where we are at. We’re looking forward to starting construction on the upgrades to the water system and the service tax law has been the biggest step to making that happen,” said AFN Chief Lorne Shovar. “Our taxpayers receive a direct benefit from getting the water system upgraded and for the community, it strengthens our relationship with our taxpayers. The revenues generated from those land leases and property taxes will serve the community for years to come.”
Indian Beach Estates is a recreational lakeside community situated on Lake Windermere located on AFN lands, just outside Invermere, with a head lease managed by Indian Beach Estates Management Corporation (IBEMC), which created the subdivision and provides services to the small community.
The water system was in need of significant repairs and maintenance, so IBEMC requested, on behalf of the property holders, that AFN provide the service and that the costs of the service be paid for by the service tax.
“The IBE community is thrilled to be able to start the construction on our new water distribution system. This will provide our residents and future generations with a stable and reliable system for many years to come. The relationship between Indian Beach Estates and AFN is very strong and we look forward to our continued partnership,” said IBEMC Board Member Paul Nevatte.
“This project is truly a win/win for us both and we want to thank Chief Lorne Shovar and Council for their hard work finalizing the service tax and the water infrastructure. Being the first First Nation to implement this service tax is truly an accomplishment.”
AFN developed a law for the provision of a water system replacement service for Indian Beach Estates and to provide for the costs of the service to be paid for by a service tax on property within that area of the reserve.
The existing water distribution infrastructure will be removed and new water distribution infrastructure will be installed for all the lots within Indian Beach Estates, with an estimated project cost at $2 million.
The service tax is a fixed rate charged each year to all properties within Indian Beach Estates for up to 25 years. All revenue collected from the service tax will be used for the sole purpose of the service. With the law enacted in November 2016, AFN hopes to begin construction this year with a target completion date of next spring.
Arrowhead technology and its importance to the pre-contact Secwepemc trade economy
Ed Jensen, from Tk’emlups te Secwepemc, grew up in a big family and spent much of his time as a young boy playing with things he made himself. He started bow-making in his backyard, progressively evolving his creations, making them more sophisticated with materials that were traditionally used by the Secwepemc, located in the interior of BC. As Ed grew up, he started doing research on flint knapping and spent much of his time in the museum.
Ed credits Secwepemc ancestors for teaching him and inspiring him through their work. Ed would examine their work to understand their techniques and then would go home and work at replicating what he saw, returning to the museum if he was unable to recreate what he had seen. Today, Ed is a well-known Secwepemc weapons specialist.
Ed believes stone tool technology had a wide-reaching effect on the Secwepemc economy, largely due to glassy basalt – a high grade volcanic material unique to the territory and an important part of how the Secwepemc were able to manage a larger territory and maintain their borders.
Clearing the Path had an opportunity to sit down with Ed to learn about arrowhead technology and the pre-contact Secwepemc economy:
“Our technology advanced a little quicker than many other nations who didn’t have basalt. As a modern-day flint knapper, I know that basalt, being harder, is more of a challenge to knap finished points than obsidian, which is like glass and is fairly easy to work with.
Using bone tools, however, 500 years ago or 5,000 years ago, would have made working this material considerably harder to do, so the ancestors compensated for that with perfect technique. Technique in stone tool technology is very important, so the masters of the day became just that, masters. Our ancestors’ superior workmanship was prevalent and the craftsmanship is evident in the museum.
Those masters would have created these pieces and traded for things they needed in everyday life. I think if we look at our civilization in a common-sense way, today we have plumbers, doctors and all of these professions, I think it existed pre-contact as well.
Not only that, the materials moved in and out of the territory as well. If you look in the archaeological record, you’ll see basalt all over the place and you’ll see one or two pieces of obsidian. The reason is obsidian is nice, it’s pretty and it creates a sharp edge but it’s a one-use product. As soon as you use this, it’s going to break. Glassy basalt is a lot more durable, it gets just as sharp, and has a little more density so it creates a better tool.
You’ll typically see a lot more of it outside our boundaries than inside, so the trade would have been an export.
Technology spread through neighbouring nations and evolved through the ages. We went from rock throwing to the hand-held atlatl (spear thrower), to bows, and when the bow hit the territories, it changed everything. From that point, they worked on fine tuning technology to create bows that would be faster, stronger, more compact. Our ancestors were lucky to have all the right materials in our territory. As a result, our tools and what we could create with them were superior.
Arrowheads were a big part of our economy but we traded other items of value as well, such as our paints and our medicines. We live in a very harsh environment with very cold winters and very hot summers, and what that does is it creates a very strong medicine because the plants have to be stronger to survive and as a result, they became very sought after for the strength of their medicine.”
Clearing the Path thanks Ed for sharing his knowledge of the pre-contact Secwepemc trade economy. If readers are aware of pre-contact markets and economies in their nation and would like to see these stories featured in Clearing the Path, please contact us at communications@fntc.ca or 250.828.9857.
More information about Ed and his work can be found by visiting his Facebook Page, Tk’emlups Traditions:
https://www.facebook.com/tkemlupstradtions1967.
Tulo student profile: Jesse James, class of 2017 valedictorian Shxw’ow’hamel First Nation tax administrator
Shxw’ow’hamel First Nation’s tax administrator Jesse James was in the 2015/2016 cohort for the Certificate in First Nation Tax Administration and graduated from the program earlier this month. Three years ago, Jesse was hired by Shxw’ow’hamel as the band administrator and as the organization transitioned, he also began serving as the tax administrator. Jesse is a member of Peguis First Nation in Manitoba and has lived in BC for most of his life. Jesse was chosen by his fellow classmates as valedictorian for their cohort and delivered a speech at Tulo’s graduation dinner.
Recently Clearing the Path had the opportunity to sit down with Jesse to learn more about his experience as a tax administrator and as a student at the Tulo Centre of Indigenous Economics.
How did you first learn about the Tulo Centre and its programs?
The program description came across my desk and really interested me. When I started at Shxw’ow’hamel, we were transitioning from taxing using section 83 by-laws to taxation under the FMA. At the time, I didn’t fully understand how the tax system works or why we did things a certain way, so I jumped at the opportunity to strengthen my knowledge in that area. It worked out great because all the course material I was working on, had just completed, or was preparing to do was all falling in-line with how our transition to the FMA was progressing at Shxw’ow’hamel.
How does your experience at Tulo relate to your work at Shxw’ow’hamel?
Understanding how the laws are made, and understanding the benefits of a budget-based tax system as opposed to using reference jurisdiction was invaluable. With a budget-based system, you have to actually think about the services you will be providing ahead of time rather than figuring out expenditures after the revenues start coming in. I learned more about how to think more like a government, and it was definitely helpful to be able to ask questions of the instructors who have an incredible depth of experience and expertise.
Through the courses, I began to see how taxes can be used to benefit, support and fund initiatives the community wants. You’re creating own-source revenue and your own laws to expend funds in ways that best serve your community. It allows the community to decide how they want to spend their money and where they want to focus their priorities. Just by having that, it provides a stronger sense of community and inclusiveness. At Shxw’ow’hamel, there’s a really good sense of community so having this system in place builds on that.
You are currently working toward earning a Certificate in First Nation Applied Economics. What made you want to pursue another certificate through the Tulo Centre?
The quality of instruction is great and I like the way the curriculum is presented. Tulo’s cohort model is community-minded and that seems to work well. You get a lot from the instructor but you also get a lot from the students in the class too. Everyone shares best practices and the lessons learned, both good and bad. When we can bring that knowledge back home, that makes all of our communities better.
There were students in our class from all areas of Canada, and you can really see the similarities even though we’re separated by provinces and legislation. The issues we face and the successes we have are so similar and to be able to rely on a whole group going through the same process, doing assignments and sending out an email or picking up the phone, it really helps to have that initial support. You want to see each other do well, so you’re going to reach out and give the support, offer and in some cases, seek support. It really works.
The Tulo programs showed me there’s a lot of different ways you can create own source revenue through development cost charges or having small developments. Currently Shxw’ow’hamel doesn’t have any residential leaseholds but if we did, we’d have to set that up in advance and it’s nice to have the theory behind it. By immediately applying the theoretical knowledge we’ve learned, I’ve been able to participate in some conversations with my fellow classmates on opportunities and issues they’re going through in their communities – it is so helpful in expanding my own understanding.
Shxw’ow’hamel is a proponent of two key FNTC initiatives: the Aboriginal Resource Tax and the Indigenous Land Title Initiative. Why does Shxw’ow’hamel support these initiatives?
We’re definitely interested in seeing both initiatives go forward. With the ART, I understand it’s been a concept for a while now so we are trying to gain momentum within the group of proponents and hopefully for all First Nations in Canada. It’s just one other source of revenue for First Nation governments and it’s going to make our economies stronger and more flexible.
It’s critical to our success to have own source revenue to do what you want on your land or to purchase more land. With setting up a land registry system through ILTI, we need First Nations exercising their jurisdiction in either taxation or land ownership, that’s the bottom line.
We’ve got momentum now, we just need to keep pushing forward.
June 2017
First Nations Gazette: Two decades of supporting the legal voice of First Nations
On June 21, 2017, the First Nations Gazette (www.fng.ca) celebrates its 20th anniversary. For the past two decades, The First Nations Gazette (FNG) has been supporting the legal voice of First Nations and continues in its role supporting the emerging voice of First Nation self-determination. Laws and regulations that govern the daily lives of Canadians are published in the Canada Gazette. The role of the Canada Gazette is to provide access to these laws and regulations, to engage citizens and to assist the private sector in meeting legal requirements. However, in 1987, the Canada Gazette made a rule that excluded First Nation by-laws from its publication.
Around this same time, many First Nations were accessing new legislative options that enabled them to enact their own by-laws – such as property taxation by-laws. First Nations were required to take steps to provide notice of by-laws and provide copies of by-laws on their own, without access to a Gazette that provided this service with ease and consistency.
It was clear that First Nation governments wanted a gazette to fulfill the responsibility of informing their communities and citizens. This was becoming increasingly important as more and more First Nations were exercising and expanding their jurisdictions. The Indian Taxation Advisory Board – the predecessor to the First Nations Tax Commission – began to explore options for the creation of the FNG.
The original vision for the FNG, which holds true today, was to support First Nations in their need to provide public notice and to transfer information regarding First Nation legislation. On Aboriginal Day in 1997, the FNG officially launched through a partnership between the Indian Taxation Advisory Board and the Native Law Centre. First Nations now had a voice for their laws, which helped to enforce their jurisdiction on the land and to inform their citizens of their laws.
“Over the course of its twenty-year history, the First Nations Gazette has firmly established itself as an important information source for laws, by-laws and codes enacted by First Nations and, more recently, for notices with regard to matters affecting First Nations. Today’s exclusively electronic First Nations Gazette evolved from changes made to the editorial and production processes to improve operational efficiency, to make the information more accessible, and to stay true to the purpose to inform. Innovation and change always raise uncertainties. The proposal to launch a First Nations Gazette was no different. Its success is demonstrated in its achievements. No doubt the First Nations Gazette will continue to be a dynamic resource and serve those who consult it or need its information.” Zandra Wilson, former First Nations Gazette managing editor
First Nation governments have been pushing forward, and gaining access to more jurisdictions and powers. As their jurisdictions and powers grow, so do their responsibilities, including transparency for their members and providing taxpayers with access to the laws and by-laws that affect them. FNG’s success and longevity is, in part, due to its recognition that First Nations want to ensure there is a reliable and easily accessible source of legal information available. Most importantly, First Nations publish their laws in the FNG to support the enforcement and governance of their laws. Because of this, First Nations have been driving the FNG forward, and have requested new services that have led to many of FNG’s technical innovations.
The FNG has grown steadily and evolved with First Nations. Originally published as a subscription-based printed book published semi-annually, today it has become available online-only, free to use, with a state-of-the-art database that is updated daily. The FNG is a comprehensive source for First Nation legislation in Canada, including current and archived laws, by-laws and codes, as well as providing public notification service for matters affecting First Nations. The public notification services is also used by other governments (federal, territorial provincial and municipal), institutions, corporations, law firms and individuals.
The FNG is widely used and has been accessed for the past 20 years by First Nation governments, First Nation members and citizens, the public, the courts and legal professionals. The steady use helps to ensure the FNG will remain adaptable and relevant. As First Nations continue to expand their jurisdiction and take on more responsibilities, the FNG looks forward to a future of transforming to reflect these important changes.
First Nations Tax Commission and Kamloops Chamber join to submit resolutions to the Canadian Chamber of Commerce
Two joint resolutions written by the First Nations Tax Commission and Kamloops Chamber of Commerce have been accepted by the BC Chamber of Commerce and will now go to the Canadian Chamber of Commerce.
Background
Over the past two months, both the First Nations Tax Commission and the Kamloops Chamber of Commerce have been working closely in seeking resolutions of support from the B.C. Chamber of Commerce for two much needed and important First Nation-led initiatives. Both resolutions have been accepted by the BC Chamber of Commerce and will now go to the Canadian Chamber of Commerce.
“FIRST NATIONS INFRASTRUCTURE INSTITUTION” resolution seeks the federal government’s support in developing legislation for a First Nations Infrastructure Institution, dedicated to improving the process of developing infrastructure on First Nations lands.
“INDIGENOUS LAND TITLE INITIATIVE” resolution recommends that the federal government develop systems and optional Land Title legislation to improve land tenure certainty on First Nations lands.
Having achieved the provincial nod, the Kamloops Chamber will now present these resolutions for debate and vote at the Canadian Chamber annual conference in September. If passed at that level, the Canadian Chamber will advocate to the federal government on behalf of both groups.
Both documents can be viewed at www.kamloopschamber.ca/recommendations-to-government
Quotes
Clarence T. Jules, Chief Commissioner, First Nations Tax Commission:
“It is vitally important to the success and prosperity of First Nations that they have access to the same economic opportunities available to the rest of Canada. With continued leadership from First Nation communities and the support of organizations such as the Kamloops Chamber of Commerce, we hope to advance these important initiatives: the First Nations Infrastructure Institution and the Indigenous Land Title Initiative, to assist First Nations in the achievement of their economic visions”Paul Ross, President, Board of Directors, Kamloops Chamber of Commerce:
“Both of these initiatives, the First Nations Infrastructure Institution and the Indigenous Land Title Initiative are paramount to our First Nations communities and the Kamloops Chamber is proud to work with the First Nations Tax Commission to bring them forward from the Chamber movement.”
May 2017
In the news: Taxing First Nations promotes accountability, good governance
On May 19, 2017, Business in Vancouver published an article by Joseph Quesnel of the Fraser Institute on the benefits of taxation for First Nation governance. The following is an excerpt of the article:
Many indigenous communities consider tax exemption to be sacrosanct.
But other First Nations now realize that raising funds through taxation is essential to modern governance. Whitecap Dakota First Nation in Saskatchewan recently signed an agreement in principle to move toward even greater self-government. They are clear how they got there.
“We wouldn’t have the casino if we didn’t have our land code,” said Chief Darcy Bear. “We have a real property tax and a goods and services tax in our community. Like any government, we need to generate our own revenue. Getting out from under 25% of the Indian Act has allowed us to grow. Self-government will take us further.”
For more: https://www.biv.com/article/2017/5/taxing-first-nations-promotes-accountability-good-/
April 2017
Tulo Student Profile: Gailene William
The Williams Lake Indian Band understands the importance of increasing source revenues as federal funding remains stagnant and even dwindles. Without additional funds, the band cannot grow or plan for the future. Own source revenue in the forms of taxation plays a vital role. In Williams Lake, Gailene William is taking on this role in addition to her job as the payroll/benefits administration clerk. Recently, we were able to sit down with Gailene and get her perspective on Tulo and Taxation.
How did you become enrolled in Tulo?
Our finance manager asked me if I was interested in taking the course at Tulo. Not really knowing what I was getting into, I dove right into the training without having any previous exposure to taxation but realized it would benefit me in my job and most of all, our community. I started in the fall of 2015, and took my final course in February 2017.
How does what you learned at the Tulo Centre help you in your work with Williams Lake Indian Band?
Many communities are beginning to realize taxation is the key to a better life. It isn’t something we should fear, but a way to create a better future. Managing taxation wisely for the nation requires education and practical training. To succeed, nations need a thorough knowledge of the ins and outs of the First Nation Fiscal Management Act and members who understand the band’s vision.
Being part of the Tulo experience has given me a broader outlook on the benefits of taxation and a properly running tax administration program and made me more confident in both the administration and education of taxation for WLIB.
What has been the most valuable aspect about the program for you so far?
Well the course work has been most valuable but thanks to Tulo a big part is that I now have contacts from other communities that I met in class who I can email or call for assistance and that’s really helped in creating my support network. Its allowed me to see what other communities are doing and learn from each other in addition to the time we spend in the class.
How does taxation fit into your community’s future?
I believe First Nation land taxation benefits a community and helps provide own source revenue – most communities financial planning is based on third-party funding agreements but when you also can add in other revenue, with no funding guidelines attached, you are able to look longer term. So in that essence, everyone benefits from it depending on how you budget your tax revenue. From opportunities for building new infrastructure to adding or enhancing programs and services that affect elders and youth, everyone benefits from tax revenue in our community. Tulo has been an excellent experience and it has also been a real challenge. “Introduction to First Nation Taxation” was the first exposure I’ve had to First Nation land taxation but attending Tulo has helped me greatly in all areas.
Also like many of our communities, at WLIB staff wear multiple hats and we also have our personal commitments to consider – for myself being a mom of three children I had a hard time leaving my kids for a week at a time for each of the eight classes. But thanks to some wonderful classmates and wonderful family who took care of my babies, I made it through each class and have made it through the end.
Public Policy Forum – Expanding the Circle
In February 2017, the Public Policy Forum held a one-day conference, “Expanding the Circle: What Reconciliation and Inclusive Economic Growth Can Mean for First Nations and Canada”. With approximately 150 delegates, the conference was co-hosted by the National Aboriginal Economic Development Board, the National Aboriginal Capital Corporation Association and Indigenous and Northern Affairs Canada.
FNTC’s Chief Commissioner C.T. (Manny) Jules appeared on a panel, “Taking Action for Reconciliation and Inclusive Economic Growth”, where he outlined his position for improving the numerous economic development challenges facing First Nations and how they can become part of the national economy.
This includes the creation of an institutional basis for First Nations to move forward. Chief Commissioner Jules discussed some of the initiatives the FNTC is working on with First Nations, including an infrastructure institute, a land title registry and an aboriginal resource tax.
Chief Commissioner Jules also spoke about the commitment by the federal government to create a new fiscal relationship with First Nations. However, he stated the relationship must not be based on program-based financial transfers, as the financial need will never be met. “I don’t want to create a situation where our governments are managing poverty, and that could happen as a result of a new program-based fiscal relationship. Our governments have to be able to manage wealth. They have to be able to set up standards to facilitate economic development growth. We have to own our own lands.”
Chief Commissioner Jules, in keeping with the theme of the segment of ‘taking action for reconciliation and inclusive economic growth’, said this means the work begins with First Nations.
“We, as Indigenous people, have to come up with the solutions. There’s no way that the federal government, provincial governments or indeed the municipal governments can come up with the solutions. This has to come from us.”
The Minister of Indigenous and Northern Affairs, the Honourable Carolyn Bennett, and the National Chief of the Assembly of First Nations, Perry Belgarde, addressed the delegates in separate presentations.
Later in the day, the keynote address was delivered by the Honourable Jody Wilson-Raybould, the Minister of Justice and Attorney General of Canada. Minister Wilson-Raybould outlined the federal government’s plan to review laws and policies related to Indigenous Peoples. A working group of ministers will be responsible for the review and will examine relevant federal laws, policies, and operational practices to help ensure the Crown is meeting its constitutional obligations with respect to Aboriginal and treaty rights; adhering to international human rights standards, including the United Nations Declaration on the Rights of Indigenous Peoples; and supporting the implementation of the Truth and Reconciliation Commission’s Calls to Action.
Minister Wilson-Raybould will chair the working group, which will be comprised of six ministers who have significant responsibilities for the relevant statutes and policies to be reviewed. The working group will first develop a workplan and set of principles, which will reflect an all-government approach that addresses all Indigenous Peoples. Minister Wilson-Raybould said First Nation-led institutions should play a key role in rebuilding the relationship with First Nations. “As we move forward, in my opinion, we also need to give more consideration to how we support Indigenous-controlled institutions that advance nation rebuilding, so that it is Indigenous peoples that govern these institutions with a vested interest in the outcome of the work they do and the decisions they make… I am also very well aware of the Fiscal Management Act and the importance of the initiatives to strengthen the ability of First Nations to raise revenues as well as borrow monies from the bond market and generally establish sound financial administration systems. The role of the First Nations Finance Authority, the Financial Management Board and the First Nations Tax Commission, are very critical. And in my opinion, there is a need to consider how we can support additional Indigenous institutions that support nation rebuilding.”
The working group will work with Indigenous leaders, youth, and experts on various legal and policy questions relating to Indigenous Peoples. At the conclusion of her remarks, and in keeping with the work of the working group, the Minister offered to meet with the Chairs of the FMA institutions in April.
October 2016
The Canadian Property Tax Association – Bringing Together Professionals in Taxation
Clearing the Path recently spoke with Brian Dell, executive vice president of the CPTA, and asked him to inform our readers on the work of the CPTA.
I am delighted to have this opportunity to give the readers of Clearing the Path a bit of insight into the Canadian Property Tax Association (CPTA). Our organization has had the privilege of working with the First Nations Tax Commission (FNTC) for the last 10 years, providing commentary and support on FNTC legislative reform and implementation of property tax initiatives. Prior to formation of the FNTC, the CPTA worked closely with the former Indian Taxation Advisory Board.
The CPTA was founded in 1967 and “is a national organization providing a forum for the exchange of ideas and information relating to both commercial and industrial property tax issues arising across Canada”. The CPTA consists of four regional chapters being British Columbia, Ontario, Quebec and Eastern Canada, and Western. A Board of Directors oversees the membership and operations of the CPTA on a national level and provides guidance and support to the four Chapters, with each Chapter having its own Executive Committee. On a regional basis each Chapter brings its expertise to a diversity of issues in the area of property taxation, whether it be commentary on provincial legislative change or more localized assessment practices.
The constitution of the CPTA sets the aims and objectives of the organization as follows: to provide a forum and information exchange in the field of assessment and taxation of property to promote the equitable assessment of property tax purposes along sound and uniform lines to study existing and proposed legislation and make representations to Governments to perform such other functions as are consonant with the foregoing purposes.
Consistent with its objects, the focus of the CPTA is to advocate from the perspective of the taxpayer, keeping in mind recognition that revenues generated from a fair distribution of property tax across the entire assessment base are vital to the public need and good government. In furtherance of its objectives the CPTA draws from its diverse membership which includes in-house and external property tax consultants, assessors, appraisers, legal practitioners, and property tax officers within various public and private organizations.
The CPTA meets its objectives by bringing together various professionals in taxation through an open flow of information and knowledge relating to the property tax industry. Among the tools employed by the CPTA to keep its membership informed of current issues and developments are education seminars and a bi-monthly newsletter, Communication Update. In the fall of each year our members gather at a National Workshop for 3 days of learning seminars, and equally important, the opportunity to network with other experts from across Canada.
In addition, each Chapter organizes its own education seminars, breakfast or luncheon meetings, round table meetings or other functions to keep the membership connected and informed. The CPTA also takes an active role in consultation with government and participates in various adhoc stakeholder committees providing insight from the taxpayer’s point of view.
We at the CPTA understand the challenges associated with working in an environment were there are numerous diverging opinions, whether they are issue specific or of national reach. Elements of regional interests and local economy must often be balanced against global principles. As is often said, there is seldom one single right answer to any question, however through openness, transparency, an appropriate exchange of information, and mutual respect and professionalism, collectively we can strive to achieve the best answer concurrent with the times.
The FNTC has made strong progress towards fostering open, fair and transparent property taxation on first nation lands. The hallmarks of a healthy property tax regime, from a taxpayer’s perspective not only involves transparent legislative and regulatory processes, but also engages full disclosure of how an assessment has been prepared, the existence of an impartial and independent assessment review system, while all leading to the comfort that there exists in any local a fair distribution of tax burden.
The FNTC has made significant inroads in promoting a clear and discernible path for property taxation regimes on first nation lands. We at the CPTA look forward to forging the relationship between our organizations through continued and productive dialogue.
Brian Dell
Executive Vice President, CPTA
Profile: Commissioner Price
Community Profile: Tk’emlúps te Secwepemc
While TteS has many accomplishments, the visual crowning glory is undoubtedly the arbour. This magnificent structure seats 2,500 people and is home to one of the largest celebrations of Indigenous culture and heritage in Western Canada: the Kamloopa Pow Wow. Thousands of visitors witness the storytelling, song and dance in traditional regalia in this annual celebration. However, the pow wow holds special significance for Tk’emlúpsemc (Kamloops people). It celebrates their heritage, builds community, and teaches children traditions and values.
The first official Kamloopa Pow Wow in the arbour opened on the site in conjunction as part of the 1993 Canada Games. Canada Games athletes, dignitaries, tourists, locals, other First Nations and TteS community members joined together to celebrate the achievement. For many, it was the first public demonstration of their right to proudly celebrate their culture and heritage in a long time.
Infrastructure Institution needed to address $25 billion infrastructure deficit among First Nations in Canada
- Implementing standards and laws required to support infrastructure projects and improve investment climates;
- Assessing infrastructure project readiness and developing an infrastructure development plan;
- Developing integrated infrastructure planning;
- Creating administrative capacity to assess appropriate costs for infrastructure projects;
- Creating capacity to efficiently project manage and build infrastructure projects;
- Creating certified training and systems for First Nation administrations to support the operation of sustainable infrastructure systems;
- Advocating for the development of new FMA revenue streams within an improved fiscal framework to finance infrastructure projects; and
- Assessing infrastructure risks and developing risk management strategies.
The proposed FNII could help fill the infrastructure capacity gaps faced by many First Nation governments in Canada. By filling the planning, financing, project management, and legal gaps, the new FMA institution can support First Nations in the development of economically and fiscally sustainable infrastructure projects.
July 2016
Payments in lieu of taxation (PILTs): An important step to expanding FMA taxation revenues
In April of this year, an amendment to the First Nations Fiscal Management Act (FMA) came into force which added “payments in lieu of taxation” (PILTs) to the definition of local revenues under the FMA. This is an important step in expanding First Nations tax-related revenues. The amendment ensures these revenues can now be included as a part of the First Nation’s local revenue account, and perhaps more importantly, it may assist in encouraging provinces to change current policies to enable these types of payments to First Nations.
Each year over $1.7 billion is paid by governments or government organizations to other governments in lieu of property tax. For the federal government, over $500 million in PILTs, are made by the Public Works Canada or Crown corporations to provinces, local governments and taxing First Nations for federally-owned properties (e.g., RCMP buildings, border facilities, Canada Post, CMHC). First Nations who have property tax laws and federal property on their lands are eligible to receive PILTs; but must complete an application each year for the PILT (for more information visit the PILT website at http://www.tpsgc-pwgsc.gc.ca/biens-property/peri-pilt/index-eng.html).
In the case of provinces, similar payments are made by the province or provincial Crown organizations to local governments for provincially-owned properties (e.g., provincial office buildings, SaskPower, BC Ferries, LCBO, Manitoba Hydro). These provincial payments are often termed “grants in lieu of taxation” (GILTs).
PILTs and GILTs evolved because of the “Crown immunity” reflected in section 125 of the Constitution. Section 125 provides an intergovernmental immunity from taxation on “…lands or property belonging to Canada or any province…”. PILTs and GILTs therefore enable the federal and provincial governments to contribute to the cost of local services while ensuring section 125 is not contravened. Most PILTs and GILTs are based on legislation (e.g., the federal Payments in Lieu of Taxation Act or Ontario’s Electricity Act), but in some cases are based on provincial policy.
While the vast majority of local governments receive PILTs and GILTs for federally-owned and provincially-owned properties situated in their jurisdictions, only a small fraction of the Canada’s First Nations receive these payments (currently four First Nations receive federal PILTs, despite the fact that there are over 100 federal properties on reserve across the country.).Though there are several reasons for this disparity (e.g., not all First Nations have tax regimes, and the amount of federal and provincial property on reserve is less than off- reserve), the most noteworthy reason is nearly all provincial governments and their Crown corporations have not extended PILTs to First Nation governments. For example, legislation supporting BC Hydro empowers the company to pay GILTs to BC cities and towns, but not to First Nation governments in BC. The same is true for SaskPower, NB Power, SaskTel, and Manitoba Hydro. All of these provincial Crown corporations occupy interests on reserve, but do not pay GILTs to First Nations.
To get a better appreciation of the PILT and GILT revenue loss experienced by First Nations, the FNTC recently commissioned economic research on federal and provincial PILT and GILT programs. This research, along with recent changes to the FMA, will greatly assist the FNTC in increasing awareness, and supporting First Nations who are taking their case for fairness to provincial policy-makers. Provincial governments will need to change their current approach to GILTs so First Nation governments are treated equally in the application of GILT programs.