ARTICLE 29: CAPITAL TRANSFER

PART 1

PAYMENT OF CAPITAL TRANSFER

29.1.1

Inuit acknowledge that they have received the capital transfer payments as listed in Schedule 29-1.

29.1.2

The Government of Canada shall make additional capital transfer payments to theNunavut Trust as listed in Schedule 29-2.

29.1.3

The capital transfer payments referred to in Sections 29.1.1 and 29.1.2 include the Government of Canada's funding obligations in respect of the Nunavut Social Development Council and of the Inuit Heritage Trust, but such payment shall in no way affect the eligibility of the Council or Heritage Trust to apply for and receive government funds available for similar institutions in the Nunavut Settlement Area and throughout Canada by way of government grants, core funding, or other such funding mechanisms.

29.1.4

Any payment to which the Nunavut Trust is entitled under Section 29.1.2 shall, if the Trustees of the Nunavut Trust so direct, be paid directly to any beneficiary of the Trust.

PART 2

NEGOTIATION LOAN PAYMENT

29.2.1

The Nunavut Trust shall repay the negotiation loans of the Tungavik Federation ofNunavut in accordance with Schedule 29-3.

29.2.2

The Government of Canada may deduct any amounts due under Section 29.2.1 against payments referred to in Section 29.1.2.

29.2.3

In all other respects, terms and conditions of the negotiation loans shall be unaffected.

PART 3

LOANS AGAINST CAPITAL TRANSFER

29.3.1

At any time after three years from the date of ratification of the Agreement, the Nunavut Trust may request a loan from the Government of Canada against the then unpaid balance of the capital transfer.

29.3.2

If the Government of Canada agrees to consider the request, the Minister of Finance, representing Canada, and the Nunavut Trust will negotiate the amount and terms and conditions of the loan.

29.3.3

The Minister of Finance is authorized to consider a request and to grant a loan, on terms and conditions as agreed, up to the amount requested, if the Minister of Finance is satisfied that:

(a)

the loan is intended for the social or economic development of Inuit;

(b)

in any year, the unpaid balance of the capital transfer payment is sufficient to cover the total of all outstanding loan repayments, interest and fees required of the Nunavut Trust;

(c)

the terms and conditions of the loan, including the amount of the loan, the timing and amount of repayments, and the interest rate,

(i)

are consistent with government policies and practices for granting loans, and

(ii)

enable the Minister to manage public disbursements and ensure fiscal constraint; and

(d)

an amount to be paid is available for that purpose from the applicableParliamentary appropriation.

29.3.4

A condition of any loan made under this Part shall be that the Nunavut Trust pay, at the time of the loan, an amount on any outstanding balance of negotiation loans described in Section 29.2.1 which will reduce the outstanding balance of those loans by the same proportion as the amount loaned under this Part bears to the unpaid balance of capital transfer payments referred to in Section 29.1.2. The amount so paid shall be credited to the last payments under Schedule 29-3.

ARTICLE 30: GENERAL TAXATION

PART 1

GENERAL RULES

30.1.1

There shall be no federal, territorial or municipal government tax or other similar charges exigible in respect of the payment to or receipt by the Nunavut Trust, or a beneficiary under Section 29.1.4, of the following amounts paid by the Government of Canada pursuant to the Agreement:

(a)

any capital transfer referred to in Article 29; and

(b)

any loan against capital transfer payments described in Article 29.

30.1.2

Subject to Section 30.1.1, tax laws of general application shall apply to the Nunavut Trust, any other recipient of a portion of the capital transfer, and to the recipient of any capital or income from the Nunavut Trust.

30.1.3

Inuit Owned Lands shall be deemed not to be reserves for the purposes of Section 87 of the Indian Act, R.S.C. 1985, c.I-5.

PART 2

INCOME FROM INUIT LANDS AND DEPRECIABLE PROPERTY

30.2.1

All profits, rents, royalties and other revenues or gain derived from Inuit Owned Lands shall be taxable under laws of general application except as otherwise provided in the Agreement.

30.2.2 - Acquisition Cost of Lands

The cost of acquisition to an Inuk or to a DIO of any real property acquired under the Agreement, other than depreciable property, shall, for the purposes of the Income Tax Act, be deemed to be an amount equal to the fair market value thereof at the earlier of:

(a)

the time at which title to such property is registered in the name of the Inuk or the DIO; or

(b)

any right or interest in such property is acquired by the Inuk or DIO.

30.2.3 - Disposition of Lands

Where any real property acquired under the Agreement, other than depreciable property, is disposed of by a DIO (the "transferor")

(a)

to an Inuk (the ""transferee""), and such real property has not previously been disposed of by a DIO to another Inuk, or

(b)

within ten years of the vesting of such property in a DIO, by that DIO to another DIO (the ""transferee""),

the real property shall, for the purpose of the Income Tax Act, be deemed to have been disposed of by the transferor for proceeds of disposition equal to the greater of the amount that would otherwise be the proceeds of disposition and the adjusted cost base to the transferor of the real property at that time, and to have been acquired by the transferee at a cost equal to the amount at which it was deemed to have been disposed.

30.2.4 - Disposition of Depreciable Property

The rules of Sections 30.2.2 and 30.2.3 shall apply to depreciable property with such modifications as the circumstances require.

ARTICLE 31: THE NUNAVUT TRUST

PART 1

GENERAL

31.1.1

Prior to the date of ratification of the Agreement, the Tungavik Federation of Nunavut shall cause to be established by trust deed a Nunavut Trust to receive the capital transfer payments referred to in Article 29 and any amounts payable to it under Article 25, and the Nunavut Trust may invest the same and distribute the income therefrom to the beneficiaries of the Trust for the general benefit of Inuit.

31.1.2

The Nunavut Trust shall be resident in Canada.

31.1.3

The Nunavut Trust shall be subject to control by its trustees, who shall be selected by Regional Inuit Organizations or through some other method that ensures conformity with Section 39.1.6.

31.1.4

The trust deed establishing the Nunavut Trust shall provide that amendment of the trust deed must involve ratification by Inuit through an appropriately designed voting procedure.

31.1.5

The rule commonly known as the Rule against Perpetuities shall not apply to theNunavut Trust.

31.1.6

The Nunavut Trust shall provide for the protection and enhancement of settlement assets based on sound management practices.

31.1.7

Subject to Section 31.1.5, the Nunavut Trust and other Inuit structures shall be subject to laws of general application including applicable tax laws.

PART 2

ACCESS TO INFORMATION

31.2.1

The following information shall be freely available to all Inuit:

(a)

the trust deed establishing and governing the Nunavut Trust;

(b)

the constituting documents of the principal beneficiary and any other beneficiaries of the Trust; and

(c)

annual reports detailing the activities and finances of the Trust, its principal beneficiary, and any other beneficiaries.

PART 3

STANDING

31.3.1

In addition to any relevant rights at common law or provided through legislation, all Inuit shall have standing in a court of competent jurisdiction to enforce the objects and other provisions of the trust deed and the constituting documents of the principal beneficiary and any other beneficiaries of the Trust.