After noting that band management activities (“BEE”) are those activities conducted by bands and band-empowered entities (as defined in B-039) (“BEEs”) “with regard to their normal administration, programs, services and activities that are designed and/or are delivered for the well-being or assistance of band members and are generally similar to those provided by other levels of government,” CRA stated:
…[S]ervices acquired on or off a reserve by the First Nation for …band management activities (“BMA”)] or for real property on a reserve are not subject to the GST/HST.
As a result, if the First Nation acquires the supply of instruction in swimming for its members who are instructed off a reserve, and the First Nation provides documentation stating that the service is being acquired for BMA, it would be relieved of the GST/HST. If a member of the First Nation acquires the supply, the tax relief would not apply.
However, … section 12 of Part VI of Schedule V to the ETA… exempts the supply made by a public sector body, such as a municipality, of a membership in, or services supplied as part of a program that is established and operated by the body and that consists of a series of supervised, instructional classes or activities in athletics, outdoor recreation, music, dance, arts, crafts or other recreational pursuits where the nature of the activities, or the level of skill required, is such that the program can reasonably be expected to be provided primarily to children 14 years of age or under.