Improvements to the FMA to Support Prosperity in First Nation Communities

Press Release

OTTAWA, ONTARIO (April 1, 2016) The Minister of Indigenous and Northern Affairs, Carolyn Bennett, along with Chief Commissioner of the First Nations Tax Commission, C.T. (Manny) Jules, Executive Chair of the First Nations Financial Management Board, Harold Calla, and Chief Executive Officer of the First Nations Finance Authority, Ernie Daniels, today announced changes to the First Nations Fiscal Management Act (FNFMA) which will make it simpler for First Nations to access the regime, implement property taxation and lever financing for community economic and social development.

The amendments not only clarify and simplify various processes under the Act, they ultimately make it easier for First Nations to opt-in to the legislation, strengthening the regime and improving the investment climate on-reserve.

These amendments stem from recommendations and consultations with the three First Nations-led institutions established under the legislation – the First Nations Tax Commission (FNTC); the First Nations Financial Management Board (FNFMB); and the First Nations Finance Authority (FNFA) – as well as with First Nations scheduled to the Act, those interested in opting-in, taxpayers and other stakeholders.

Quick Facts

– The Act has strong, sustained demand from First Nations wishing to participate in the regime. Currently, 177 First Nations have chosen to opt-in to the Act, with 86 collecting property tax, 62 having received FNFMB financial performance certification, and 52 accepted as FNFA borrowing members.

– First Nations participating in the FNFMA have over $481 million in own source revenues, and have used these revenues to support over $250 million in FNFA loans to build houses, a school, green energy projects, refinance existing debt and to help pay for new capital infrastructure.

– First Nations with property taxation jurisdiction under the FNFMA have collected over $250 million in property tax revenues, supporting vital services and infrastructure.

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