Jorge Barrera
Northern News Services

Yellowknife (Mar 18/02) - The federal government is appealing a landmark decision exempting Treaty 8 signatories from paying taxes, says Minister of National Revenue Elinor Caplan.

"This is a complex and important case and these issues require consideration and clarification by a higher court," Caplan said in a press release last week.

The federal government says it is applying for a stay of judgment during the appeal because the original ruling created "uncertainty for individuals, employers and merchants."

On March 7, Federal Court trial division Judge Douglas Campbell, sitting in Edmonton, ruled that Treaty 8 signatories do not have to pay taxes because federal negotiators made the verbal promise at the time of the treaty signing in 1899.

Campbell, in his judgment in the Gordon Benoit case, wrote that "in order for the honour of the Crown to be maintained" the federal government had to uphold assurances it would not tax Treaty 8 signatories.

On March 15, Treaty 8 chiefs in Alberta and the Northwest Territories hastily organized meetings to decide on a response to the appeal.

They have 10 days to respond to the notice of appeal.

"The appeal was expected," said Akaitcho Treaty 8 Chief Richard Edjericion from Dettah. "It would have been nice if they had the courage to resist pressure to fight the ruling."

The Akaitcho Nation said last Thursday during an early-morning press conference that it would intervene in the Benoit case if the federal government applies for a stay of judgment.

They pulled out of the case in May 2001, choosing to negotiate the tax issue instead of fighting it in court.

Sharon Venne, Akaticho assistant chief negotiator, said they have to study the federal government's arguments before they make a final decision.

Alberta Treaty 8 spokes-person James Badger said he was disappointed with the federal government's move.

"Of course I am disappointed they appealed instead of negotiating with Treaty 8," said Badger, speaking from Edmonton.

Treaty 8 chiefs from the territory, Alberta, British Columbia and Saskatchewan are scheduled to meet in Edmonton March 22.

A official with the Canada Customs and Revenue Agency, the lead federal department in the court case, said it is tax business as usual for Treaty 8 signatories.

"They still have to pay taxes, but to protect their rights they should keep their receipts and leave their tax return open," said Colettes Gentes-Hawn, public affairs director for the agency.

The case is being watched closely by the territorial government and Treaty 8 First Nations.

Fiance Minister Joe Handley said lost tax revenue from the territory's portion of the 30,000 Treaty 8 members could range between $1 million and $3 million.

Handley said black-market cigarettes and an increase in bootlegging could be spurred by a sudden drop in price for Treaty 8 members.

"There could be increased social problems," said Handley.

Chris Reid, Deh Cho First Nations chief negotiator, said the March 7 decision confirms that the courts have to take into account the aboriginal understanding of the treaty.

Western Arctic Liberal MP Ethel Blondin-Andrew said she couldn't comment on the case because she hasn't been briefed.

"As a minister of the Crown, I have to confer with officials to speak on this," said Blondin-Andrew.

Treaty 8 covers Sask-atchewan, parts of British Columbia, Alberta and the Northwest Territories including the communities of Ndilo, Dettah, Lutsel K'e and Fort Resolution.

The Canadian Taxpayers Federation said the Benoit case ruling will create taxpayer apartheid. It has applied for intervenor status in the appeal.

-- with a file from Derek Neary