Derek Neary
Northern News Services

Yellowknife (Mar 15/02) - The Benoit decision, making aboriginals off reserve tax exempt, could impact the Deh Cho, but imposing taxes is still a possibility for a Deh Cho regional government.

The federal court ruled last week that Treaty 8 members living off reserve are not required to pay taxes. Chris Reid, DCFN chief negotiator, said Monday he expects the Crown to appeal but he believes the decision will be upheld.

"It's a very well-written, well-reasoned decision," he said. "It confirms that the courts have to take into account the aboriginal understanding of the treaty. It's not a simple exercise of reading what's on paper and saying, 'That's the treaty.'"

Reid said Treaty 8 and Treaty 11 are very similar, so a corresponding finding could someday apply in Deh Cho. If so, there would be repercussions on self-government negotiations.

"The Crown takes a very hard line on tax issues in negotiations. They have been very reluctant to extend tax exemptions. On the contrary, they usually want to get rid of existing tax exemptions," he said. "I think it's going to increase pressure on the Crown, definitely. I think there will be an appeal because First Nations all over the country are going to be looking for the same thing."

Taxes may still exist

The Deh Cho First Nations want jurisdiction over taxes as part of self-government. Therefore a Deh Cho regional government may levy taxes in the future, perhaps an income tax or a goods and services tax, Reid acknowledged.

"With levels of unemployment at what they are right now, it's kind of a moot point. There's not a lot of revenue to be made from taxing people of the Deh Cho," Reid reasoned. "But everybody hopes that in the future there will be full employment or close to full employment, and there would be a source of revenue there for a government.

"People I've talked to in the Deh Cho, generally... accept that there should be some taxes paid to some government to pay for services," he said. "They definitely would prefer, though, that they pay it to a Deh Cho government, a government closer to home."

On the other hand, there may be low taxes or no taxes to encourage investment and employment, stimulating the economy, he noted.