by Roy Dahl
Northern News Services

NNSL (Dec 15/97) - The Federal Tax Court of Canada has ruled the chief of Fort Good Hope First Nation does not have to pay taxes on income earned in 1992.

Everett Kakfwi was elected chief of the band in 1992, and collected salaries and benefits of $56,000. He filed a return that year, indicating he paid more than $9,000 in personal income tax. His return was reassessed by Revenue Canada, claiming he owed more in taxes.

Kakfwi filed an objection, which was rejected by Revenue Canada. The K'ahsho Got'ine Tribal Council then urged him pursue the case in court. Eventually, the case was heard by the Federal Tax Court of Canada.

In a decision rendered late last month by Judge Bowie of the Federal Tax Court, status native Canadians do not have to pay taxes on reported income, provided they can demonstrate the income came from federal funds normally provided to the band for purposes of running the community.

"I'm very happy," said a relieved Kakfwi, who was elected to the post again last summer, "I was nervous about the case for a long time because I didn't know how the it was going to be decided. Now, there's something to sing and dance about."

Kakfwi confirmed he is waiting for a refund cheque, but hasn't made plans about how to spend it yet.

It is not known yet whether the federal government intends to appeal the decision although federal lawyer Ernie Wheeler indicated "they were still looking at all the options".

"Chief Kakfwi may still receive a refund for the year in question, and Revenue Canada will likely change their administrative procedure in the future," he responded to questions about the immediate impact of the decision.

Wheeler cautioned northerners however, not to go out of their way to file requests to have their tax situation reviewed as, "Revenue Canada is not in the habit of applying decisions retroactively".