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Tax assault

National Chief says first nations shouldn't pay municipal taxes

Jorge Barrera
Northern News Services

Yellowknife (Jun 01/01) - The federal government is launching a frontal attack on First Nations tax exemptions, said a lawyer with the Assembly of First Nations.

Max Dokuchie said there appears to be a correlation between increased economic development in First Nations communities and an increase in court cases involving Revenue Canada and aboriginal people.

The statement came during the Dene leadership assembly in Fort Providence Wednesday.

"As First Nations people we should not have to pay taxes to other governments," said Dokuchie separately.

Dokuchie said 60 tax cases are currently before the courts.

In a presentation to the Dene leadership, he said "over the next couple of years the courts will play a significant role in redefining the scope of (First Nations) tax status."

Bill Erasmus, national chief for the Dene Nation, said the Benoit case before Federal Court in Edmonton involving tax immunity assured in Treaty 8 is the one to watch for the North.

"We are not to pay taxes under that treaty," said Erasmus.

He said the treaty makes no mention of reserves. Under the federal government's Indian Act, tax exemptions effect reserves only.

The Benoit case has been in the courts for a decade. It was filed by Gordon Benoit, a former heavy equipment operator from Hay River.

He discovered a report written to the superintendent of Indian Affairs at the time which mentioned tax exemptions for treaty holders.

According to Dokuchi if the Benoit case is successful for Treaty 8 nations, it would trigger a domino affect for all treaties because they are all modeled after one another.

Erasmus said the territorial and federal governments do not recognize the Dene's right to tax immunity. With only one reservation in the North, Erasmus said Dene pay the same taxes as the rest of Canada.

"Our own right to tax immunity is not recognized and implemented," said Erasmus.

One of the main tax sticking points with the Dene Nation is the territorial government's right to enforce municipal taxes on Dene people.

Territorial Aboriginal Affairs Minister Jim Antoine said there are lands reserved for "Indian housing," but lands within municipal boundaries and Commissioner's Lands do fall under the GNWT's jurisdiction to tax. He said the government has not enforced those taxation regimes.

"We're in a constant struggle," said Richard Edjericon, Dettah Yellowknives Treaty 8 chief.

He said constant taxation takes money from band coffers and into government coffers.