Treaty 8 Indians Seek $1-million from Taxpayers and CTF for Legal Costs

EDMONTON: The successful plaintiffs in the Federal Court action in Benoit v. Canada have applied to the Federal Court to be awarded 100% of their legal expenses: almost $1-million incurred since they commenced the action in 1992. On March 7, Federal Court Justice Douglas Campbell granted the descendants of the Treaty 8 Indians a lifetime tax exemption, both on and off reserve. In his March 7 judgment, Justice Campbell ordered Canada to pay a portion of the plaintiffs' costs, short of full indemnification.

The Indians are asking for "solicitor-client costs" of $953,253.99 from the federal government, including $8,487.98 from the Canadian Taxpayers Federation (CTF). The CTF was an intervener in this action, arguing that racial ancestry should not form a basis for a tax exemption.

"The court is being asked to impose a million insults to taxpayers injuries," said CTF-Alberta director John Carpay. "This confirms the CTF's fears that this decisions represents a slippery slope. First, there are costs for this case, possibly followed by an application for back taxes, likely followed by other Indian bands claiming their blanket tax exemption. This has the potential to make the chaos in the Atlantic fishery created by the Supreme Court following its Marshall decision look benign by comparison."

Earlier this week the federal government filed affidavits in federal court stating that if the decision if allowed to stand it has the potential to significantly reduce government tax revenue, create an administrative nightmare for business and open the door to extensive manipulation, market distortion and even smuggling.

The decision on the amount of costs will be made by Justice Douglas Campbell, the same judge who made the initial March 7th ruling in this case.

"The CTF has consistently maintained that all Canadians need and deserve tax relief and tax reform, but both must be based on the principle of fairness." stated Carpay "If someone does not pay taxes, it should be because they are too poor to pay, not because of their ancestry."