Definitions

1   In this regulation,

"Act" means the Property Transfer Tax Act;

"First Nation" means a band as defined in the Indian Act (Canada).

Exemption

2   (1) Subject to the conditions set out in sections 3 or 4 (4), a transferee who applies for registration of a taxable transaction at a land title office is exempt from the obligation to pay tax under section 2 (1) (a) of the Act.

(2) An application for an exemption under subsection (1) must

(a) be tendered with the transferee's application for registration of the taxable transaction, and

(b) be in the form required by the administrator.

Conditions for exemption – property held in trust

3   The exemption under section 2 applies if all of the following conditions are met:

(a) both on May 21, 2024 and immediately before the registration of the taxable transaction,

(i) the transferor holds the property that is the subject matter of the taxable transaction in trust pursuant to a trust instrument executed on or before May 21, 2024,

(ii) the transferor is registered under the Land Title Act as the trustee of the property, and

(iii) the trust referred to in subparagraph (i) is for the sole benefit of one or more First Nations;

(b) the beneficiary of the trust referred to in paragraph (a) (i) does not change between May 21, 2024 and the registration of the taxable transaction;

(c) the transferee is

(i) if the trust referred to in paragraph (a) (i) is for the benefit of a single First Nation, that First Nation, or

(ii) if the trust referred to in paragraph (a) (i) is for the benefit of more than one First Nation, all of those First Nations.

Conditions for exemption – property held by corporation

4   (1) In this section:

"eligible corporation" means a corporation described in subsection (2);

"wholly owned subsidiary" has the same meaning as in section 1 (1) of the Business Corporations Act.

(2) A corporation is an eligible corporation if

(a) all of its shares are owned by any of the following:

(i) one or more First Nations or a person who holds the shares in trust for the sole benefit of one or more First Nations;

(ii) one or more corporations that are

(A) eligible corporations under subparagraph (i), or

(B) wholly owned subsidiaries of eligible corporations referred to in clause (A);

(iii) any combination of the persons referred to in subparagraphs (i) and (ii), and

(b) it is not either of the following:

(i) a partner in a partnership;

(ii) a trustee of a trust, unless the trust is for the sole benefit of the First Nation, or, in the case of more than one First Nation, all of the First Nations, referred to in paragraph (a) (i).

(3) If multiple corporations are eligible corporations under subsection (2) (a) (i) in relation to the same property, they are deemed to be a single eligible corporation for the purposes of subsection (2) (a) (ii) (B).

(4) The exemption under section 2 applies if all of the following conditions are met:

(a) both on May 21, 2024 and immediately before the registration of the taxable transaction, the transferor

(i) is an eligible corporation,

(ii) holds a registered interest in the property that is the subject matter of the taxable transaction, and

(iii) does not hold the property in trust;

(b) the transferee is the First Nation, or, in the case of more than one First Nation, all of the First Nations, referred to in subsection (2) (a) (i), in respect of which the transferor is an eligible corporation both on May 21, 2024 and immediately before the registration of the taxable transaction.

Refund

5   (1) A transferee who is entitled to an exemption under section 2 of this regulation in respect of a taxable transaction and who fails to apply for that exemption on the registration date may, within 6 years after that date, apply to the administrator for a refund of the tax paid by the transferee under section 2 (1) (a) of the Act on the registration of the taxable transaction.

(2) On receiving an application for a refund under subsection (1), the administrator

(a) if satisfied that the transferee would have qualified for an exemption under section 2 on the registration date, must refund to the transferee the tax paid by the transferee under section 2 (1) (a) of the Act in respect of the taxable transaction, or

(b) if not satisfied that the transferee would have qualified for an exemption under section 2 on the registration date, must refuse the application and provide the transferee with written notice under subsection (3) of the refusal.

(3) If an application for a refund under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment made under section 18 of the Act for the purposes of allowing the applicant to give a notice of appeal under section 19 (1) of the Act.