Native tax exemptions hurt business

Native Tax Exemptions Hurting Small Business

$69.2 million paid back to Indian bands in provincial fuel and tobacco taxes

Fuel tax rebates up 319%, tobacco tax rebates up 1643% since 2000

REGINAThe Canadian Taxpayers Federation (CTF) is calling on the provincial government to eliminate race-based tax exemptions, in light of new figures obtained through Freedom of Information. In 2008-09, businesses located on reserves in Saskatchewan received $54 million in provincial tobacco tax rebates and $15 million in fuel tax rebates. Non-reserve businesses do not have this unfair, race-based tax rebate.

“Reserve businesses not having to pay taxes creates an unfair playing field. It’s extremely difficult for non-reserve businesses to compete,” said CTF-Saskatchewan director, Lee Harding. “It’s no wonder the Shell station at Angus Street and Dewdney Avenue recently closed.”

Harding released the figures today at Sonshine Car Wash and Gas in North Central Regina. The business operates just a few blocks away from the Piapot urban reserve. Dion MacArthur, owner of Sonshine Car Wash and Gas, estimates that cigarette sales have dropped 75 per cent and overall sales 25 per cent, since the Piapot band opened the Cree Land Mini-Mart.

“With provincial gas taxes at 15 cents per litre and cigarette taxes at $4.58 per pack, it is impossible for an off-reserve business to compete for Indian customers,” continued Harding. “Tax-free status also means lower overhead costs, giving a competitive advantage to capture the non-native market as well.”

Since the introduction of the provincial gas and fuel tax rebate program in 2000, native bands have seen the fuel rebates increase from $3.6 million per year to $15.1 million this past year. More significant is the rise in tobacco rebates of $3.1 million in 2000 to $54 million today. One in five tobacco tax dollars collected by the province are rebated back to Indian bands.

“Now that an urban reserve has been introduced to Regina and with more on the way, these figures will only rise,” said Harding.

“It would be great if we could all be exempted from taxes. Until then, all Canadians, regardless of where they live, or their race, should conduct business and pay taxes under the same rules,” Harding said. “Tax exemptions for reserves are not found in the treaties, but in Section 87 of the Indian Act. The province should eliminate its on-reserve tax exemptions and push the federal government to do the same.”

 

BACKGROUNDER

Backgrounder: Stats on Provincial Fuel and Tobacco Tax Rebates.

 

Sources: Access to Information, Saskatchewan Public Accounts, CTF calculations.

 

By: Lee Harding
Posted: November 12, 2009
Topic: Saskatchewan

Type: News Releases

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Comments

status

I am a card carrying status native t5hat pays out $80,000 annually in taxesto the feds. I also own operate businesses both on and off reserve. I payed out $40 000 in reserve "taxes "as well. So basically I.m paying taxes  both on and off reserve. which I don't mind as long as the  taxes are being spent improving the lives of all people. By the way my family on reserve still live in third world country conditions. As a country considered to be the most congenial, lets look inword, please.  

Native American Taxes

Ok, we did take their land, but if you think before that they were at war with each other taking each others land, without mercy and definetly without paying another tribe to use their land. Even if you do think that it was unfair for us to take their land, think about everything that we gave them. We gave them our culture that they are living in, we gave them our technology that they are enjoying. If it were not for us they might still be living in teepees, we advanced their civilization by centuries, does that not count as anything?

I almost cannot stand the "it wasn't fair" arguement. Every civilization, every nation, every type of people, have their own "it wasn't fair" story. Why should the natives recieve money for theirs, it's nothing special, look at what whites did to blacks, they made them into slaves. Not a dime. I encourage native americans to stop living in an era that they weren't alive in, and live in the present. Natives are Canadians and as such should pay taxes along with any other Canadian. I am a white man asking his government for equality, racism should not be tolerated.

Racism and Realism-Law Dog

You're right, racism by someone purporting to be a "white man" (who knows if you are, and who cares really) spewing a bunch of ignorant, non-educated nonsense bearing no semblance and, indeed, totally contrary to the facts should not be tolerated. There is so much wrong with what you typed, it's really not worth responding to (all drivel and painful untruths mostly, and that you might be having a bad day or upset over the tax system as are all Canadians, native and otherwise, does not entail you to spew nonsense). Allow me to disabuse you of the privilege, and for the benefit of all who may come to read here. Firstly, "our culture"? Actually, it is we who are enjoying theirs. Much like the fur bearing barbarians of Europe who evolved along different lines, and in different capacities, so, too, did the Natives here. Some were hunter-gatherers but others were actually as if not more civilized than any European, speaking many languages and having advanced economies, such that they traded not in response to the arrival of the French, but rather, were more than happy to show off their wares, trading furs, fish and other goods (same as the Euros were trading back in Europe) for things they, as shop keepers and consumers, were likewise interested in. It is also well known that many tribes had a strong sense of land ownership, the Iroquois and companion nations being but one example, a long house agrarian society as advanced as any in Europe (land serfs and slaves were Europeans mostly, unlike the Iroquois who were most advanced and civilized by comparison, defending their land against encroachment by any and all other nations (be it someone from a different native nation or a european nation, either way, trespassers all). Indeed, the US constitution-federalism, since copied as modified for the Canadian system is based/copied as modified by the US founders for America from the Iroquois Conferdacy, being the original federalism. Furthermore, many Indian nations had an advanced system of politics, with equitable particiopation by tribal members (including and let us not forget women elders who like the senate instilled sound, second and sober thought, far more useful that Canada's current senate, meantime, no right to participate much less question the Monarch-any monarch-in Europe at the time, who did not have the right much less the cultural intelligence to vote. Finally, most nations had a sense of law, including concepts of retribution and civil retribution, with women having rights far advanced as compared to the women of Europe at the time (indeed, the women's suffragate movement in North America was based on that of their North American Indian women counterparts, who resisted so-called "civilization" of European mentality for good reason, seeing the loss of their rights to equality, liberty and democratic participation which, there being nothing civilized about the so-called "euro" method which centuries later women and men of European background would themselves advance and come to realize, so for women's rights and the advancement of humanity-including our present federal system of goverment and advancements of criminal law (based on healing circles etc., being no different than retribuition, community service and reparations as understood and practiced by many if not most tribes since time immemorial and long before the arrival of Europeans). Sure, indian notions of property ownership were communal, then, they communally defending their claims. That treaties are law and constitutionally valid, forming a part of the constituting documents (the British North America Act, 1867, as modified by the Constitution Act, 1982, and Charter), we, so-called civilized Canadians of modern age, being a nation of law, are in turn bound to honor, and that includes the tax exemption as part and parcel of compensation for what in fact was their land. 

 

If the government took your land as part of its eminent domain, you would expect a cheque for the fair market value immediately, and highly doubt you'd be so "civilized" as to wait centuries for your rightful recompense. As to trying to de-Indianize the Indians by forcing their children into residential schools, etc., that is a human rights violation of the highest order, a repugnant action to which all civilized nations and people legitimately take umbrage, and also, among other things, entitles the Indians who suffered such abuse ad nauseum damages. Might want to get your facts straight before opening your mouth in turn.

That said, who isn't upset about paying taxes; while North AMerican natives have their rights, including tax exemptions when buying goods under the Federal Act, and everything is tax free on reserves, fact is and remains, we the majority of people-whether native or non-native-who do not live on reserve have an abundance of services, including roads, police and fire, schools, recreational facilities (pools, skating rinks, etc., not to mention bike and jogging trails, etc.), along with health clinics, hospitals, and so forth, this is because we pay taxes; that reserves are not comparable (some are quite lovely, particularly enjoy the ones where oil and gas or other resources are being developed on their land, with their consent of course, the cost of which consent among other things including community improvements, job training where applicable and of course a share of royalties, those reserves being quite lovely in turn), many reserves aren't so fortunate and are, sadly, in a poor state of repair, then, the economic rent (which includes taxes, etc) the Indians pay to and/or receive in respect of their reserve, combined with racism directed at many still sadly when they attempt, like all other Canadians, to pursue a higher education, etc. (what jobs for them exist in turn back on the reserve which is their right, their land, upon which they are entitled to live, as a Canadian and as a North American Indian). One need only visit the reserves and what few community benefits there are and compare it to a non-reserve city or town next door to the reserve to realize and appreciate the difference. Then, if the question is one (and I think it is) whether or not retailers on reserve may pass the tax exemption onto non-native consumers who visit the reserve, it is a fair observation, and rests I imagine or should with what that particular Indian band/tribe/nation was doing in terms of commerce and trade, meaning, whether they were trading goods among themselves and other bands/tribes/nations before the French arrived, in which case it would seem to me to be an aboriginal right, as opposed to engaging in trade on account of the arrival of Europeans (meaning, in response to and as a result of), in which case I believe the question should be answered in the negative, something happening on account of or in reaction to not in my opinion being an aboriginal right.

Of course, one could in the alternative argue that aboriginal land is a specie of self government meaning they are on their land subject only to their own taxes in turn (which is a valid argument, and presumably justifies the difference even although when a native trades off resere they aren't subject to taxes either, but the latter isn't a specie of self government but, rather, one of compensation on account of the treaties concerning the land in the first place). That said, and no matter how matter how much we all-native and non-native-are inclined to detest the reality of taxes, it is these taxes which pay for public services and improvements in turn (not to mention the salaries of public officers, politicians and public employees with their union scale wages, but I digress).

That said, and quite apart from being concerned over native tax-exemptions, I would think small business owners would be more concerned over the Internet, especially in light of NAFTA and the WTO, and fact most Candians these days not only use the Internet to comparison shop, but buy goods predominantly from US retailers who, even after accounting for taxes (and duties, if applicable), are in fact much cheaper on many items than comparable prices charged in the Canadian stores, suggesting to me in turn that the age old problem is what is at work here: inefficiency and that old adage concerning greed (whatever the market will bear, and in this day and age, that market is the world-wide Internet, to which Canadian shop keepers must adapt or go the way of the typewriter).

This "lobbying effort" by the

This "lobbying effort" by the CFT is embarassing as a resident of Saskatchewan and a taxpayer.

indian status

This information is misleading, and I would argue "race-based". In order to receive a tax exemption you must produce an Indian Status Card, or treaty card as they are referred to in the West (this may be why some people refer to the tax exemption as a treaty right). People without status must pay the tax on goods and services they purchase on reserve. Whether they do or do not is a matter of retail/administrative procedure. Canada does have systems in place to ensure that on-reserve business adhere to these rules, and collect taxes from non-status customers.

This article is simply another attempt to perpetuate negative stereotypes about Indigenous Peoples, and create the social clout needed by right wing agendas to change the current system in favour of their political agenda.  Keep up the good work (what little of it your are capable of), Mr. Harding.

Further, all businesses can receive a tax credit in some form or another. If an on reserve business receives a tax refund, then technically it is because they collected taxes that they should not have collected in the first place. They cannot claim tax back that they collect from non-status, and must submit these funds.  

Finally, for too long on reserve money, flowing in from the GOC, would flow (and largely still does) straight back into businesses that white people have set-up to service people living on reserve.  I have never heard Mr. Harding, or any of his settler nation colleagues, discuss how much of the 9$ billion dollar “myth” actually lands back in the hands of non Indigenous Peoples (of course the CTF would never conduct such a balanced piece of research, now would they?).

So, who's business are these off-reserve retailers losing?

- STTP (some times a tax payer)

First Nations Taxes

You folks are wasting your time on this and embarrassing yourselves.  Along with a whole list of social reasons, tax exemption is a Treaty right.  Treaty rights were traded for us (non-aboriginals) to use their land.  Unless you want to give all the land back to the original people, tax paying is not negotiable.  Read your history, or at least the applicable treaties and this should help.

Tax in treaties

Anonymous Taxpayer:

 

Actually, it is not accurate to argue broad-based tax exemptions are found in the historic treaties. The Canadian Taxpayers Federation did an excellent study on this very topic, which I would recommend to you. The Numbered Treaties do not mention. The closest is the Royal Proclamation Act of 1763 which mentions that Indian lands could only be alienated to the Crown, but even that does not mention anythng about taxes, being as these taxes we are talking about did not exist.

Treaties are not about taxes, but about perpetual benefits to Indians in exchange for large tracts of land for settlement for non-Aboriginals. These benefits included the reserve lands themselves, a yearly payment, promises of on-reserve schools in most Numbered Treaties, some medical benefits in perpetuity. So if the federal government is meeting that obligation, it is meeting the spirit and intent of the treaties. Paying or not paying taxes was not part of the exchange.

Tax exemptions are found in the Indian Act as a means to prevent First Nations from losing their lands through forefeiture for non-payment of taxes. The Indian Act is an archaic federal law, so it would be fair the system exempting on-reserve Natives from paying taxes is itself a colonial imposiion on Indian peoples.

The Nisga'a Nation of BC, as well as other sgnatories of modern treaties, are also giving up their exemption from income and sales taxes.

Witness the Gitxsan people of British Columbia who are considering giving up their exemptions and even Indian status (which is not from treaties also) for a share of resources on their own lands.

First Nation peoples were always governed by traditions of sharing and contributing to the whole. To me, paying taxes is the modern way of doing that.

There are better ways for them to show they are ready for business than to take advantage of other businesses.

As to my knowledge of this topic, I am a Metis analyst with experience in constitutional law and has written for an aboriginal newspaper and work as an aboriginal policy analyst, not to mention proud contributor to the Canadian Taxpayers Federation.

And your initials are J.Q.

Good contribution, thanks!

tax in treaties

The treatment that first nations are currently recieving can not be long term. Like alot of things on this planet it simply is not sustainable. Taxpaying canadians fighting the pressures of productivity in the market will slowly lose out to others poised to accell without the tax burden that we face created by our government, in favor of the first nation people. We need to wake up, first nations included.  We as Canadians  need to work together as a nation instead of this costly division of races we are currently experiencing.  To the first nations people, I cannot say sorry for the past as I had nothing to do with those matters, I only see what is in our future. At this point in history I think we both owe each other thanks, on our part you allowed us to occupie this land. on your part we accellerated you into this global lifestyle that was inevitable all the while sheltering you from other occuping nations that didn't treat their indigeanous people as well as we did. In the end we are all people I dont care where we came from I care where we are going and where we are going is ever competitive markets and lifestyles that the current first nations person living with handouts cant keep up with. I truely think survival of the fittest is going to be our future. And the fittest aren't living off handouts.

I'm a working tax tax paying

I'm a working tax tax paying canadian. I have a wife and two kids. My neighbor is a first nations person with six kids and no job. As far as I see it I may as well walk next door and hand them my cheque. Im sick of this!

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