8.1 (1) Subject to subsection 2, payments may be made to a person under the Consolidated Revenue Fund in respect of an amount paid to the person under that Act or Act, where an administrative agreement has been entered into in respect of an Act of the Legislature of a province or the legislation of an Aboriginal government, in accordance with the terms of the management contract. 7.1 (1) Where the Government of Canada has entered into an administrative agreement in respect of an Act of the Legislature of a province, the federal minister responsible for the administration and enforcement of the Act under the Administrative Agreement may, subject to the law of the Province and in accordance with the terms of the Agreement, any amount to be paid to a person under this Act, to reduce the amount that the person must or may pay under an Act of the Provincial Legislature or an Act of Parliament. Unlike Britain and the United States, Canada had avoided collecting income tax before the First World War. The absence of income taxes was deemed key in Canada`s efforts to attract immigrants, with Canada offering a lower tax system compared to almost any other country. Prior to the war, Canadian federal governments relied on tariffs and customs revenues under the National Policy for most of their revenues, and provincial governments lived primarily through their management of natural resources (the former provinces were subsidized by the federal government, with Ottawa retaining control of its natural resources). The Liberal Party maintained the likely need for an income tax if its negotiation of a free trade agreement with the United States was successful in the early twentieth century, but the Conservatives defeated the Liberals in 1911 by opposing free trade. The Conservative Party rejected income tax because it wanted to attract mainly immigrants from the United Kingdom and the United States, and it wanted to encourage immigrants to come to Canada. 8 Where the government of a province or aboriginal government has entered into an administrative agreement, the Minister may, according to the rules, make advances to the province or to the Government of the Aboriginal peoples from the Consolidated Revenue Fund for any amount to be paid to the Province or to the Government of the Aboriginal people under the management contract. . . .