FinanceMaking our money work
As a self-governed body, ensuring our funding and investments are handled wisely is of the upmost importance. Through proper management of our income, we are able to provide the services and programs that allow our region to grow.
The Nunatsiavut Government receives funding from various sources. The Labrador Inuit Land Claims Agreement, like most modern treaties, included a capital transfer commonly known as compensation dollars and a one-time implementation fund. Funds received in the first 10 years have to last, so the Nunatsiavut Government intends to spend carefully and invest wisely. These dollars are being administered under two trust indentures: The Labrador Inuit Lands Claims Settlement Trust Fund and the Labrador Inuit Land Claims Implementation Trust Fund.
The Labrador Inuit Land Claim Agreement has a number of additional agreements, including a fiscal financing agreement with the federal government. The Nunatsiavut Government also has an own source revenue agreement, a tax treatment agreement, and an income tax and GST collection agreement.
Own source revenues are those which the Nunatsiavut Government will collect and spend on behalf of the Labrador Inuit. These resources are not provided by federal or provincial governments. Own source revenues include federal excise and personal income tax shared by the Government of Canada, business income, and investment income. Under our agreement with the Government of Canada, a claw-back will be phased on our own source revenues.
For more information, please visit the Intergovernmental and Aboriginal Affairs Secretariat website.
The Nunatsiavut Government is committed to transparency and accountability, a pillar of good governance. To achieve this, the government follows the requirements as outlined in the Labrador Inuit Constitution and the Financial Administration Act. Both outline the responsibility and standards for oversight, management, and control of all financial matters of the government, including budgets, annual reports, and audited financial statements.
The department ensures there are appropriate financial systems and controls in place and that all budgets are properly monitored and controlled so that all departments have timely and precise financial information and support.
Regarding Tax Exemptions
GST/HST legislation does not provide tax exemptions for any individuals, and any card claiming such an exemption is a fraud. However, individuals with Indian status under the Indian Act may not be required to pay GST/HST on the purchase of goods and services under certain conditions.
There are no tax exemptions for any Beneficiary of the Labrador Inuit Land Claims Agreement under any circumstance.
For more information, please visit the Canada Revenue Agency website.