If a recent court ruling stands, natives living anywhere in Canada may be able to avoid paying income taxes. Under the Indian Act, income earned on reserves by natives living on reserves was already tax-exempt, but off-reserve natives were taxed like everyone else. Now a federal court judge in Ontario has ruled that aboriginals living and working off-reserve may also be income tax exempt, and other cases are lined up to argue that natives are exempt from taxation, period.

At issue is a scheme whereby off-reserve natives work "on contract," their salaries paid through a reserve-based employment agency that "leases" their services to off-reserve employers. The specific court case involved Rachel Shilling, a native living in Toronto and working for a social service agency. Her $47,000 salary was funneled through an employment agency (Native Leasing Services) on the Six Nations Grand River reserve. The judge concluded that, by having her salary paid through a reserve-based company, Ms. Shilling could, as a status Indian, avoid paying income tax.

Taxpayers should be outraged by this blatantly political court ruling, which expands race-based tax laws, but let's look on the bright side: This case suggests several innovative strategies that might help us all to avoid income tax. (Note to reader: the following is entirely tongue-in-cheek. Do not try this at home.)

Tax Dodge Strategy 1:

If you have native ancestry, sign up with reserve-based employment agency to launder your income.

If you are not native, register a company with an aboriginal partner on the proposed "Winnipeg urban reserve" and crush the local competition with you're virtual tax-free status.

Tax Dodge Strategy 2:

As indicated by Judge Karen Shardlow, "the most important factor to take into account in determining the location of Ms. Shilling's employment is the location of her employer- Her employer is located on a reserve, which favours the conclusion that her employment income is located on the reserve."

So if you work in Manitoba for an Ontario company, try paying Ontario tax rates. Even better if you work for an American company, or a company based in one of those oil-rich countries where they don't pay any income taxes. Viva Kuwait!

Tax Dodge Strategy 3:

Ms. Shilling argued that living and working on a reserve should not be prerequisites for a tax exemption. What should matter, she said, is whether she "maintains relationships with native people and to her native community," is an accepted member of her reserve, identifies herself as a native person and works for the benefit of natives.

Claim that you maintain relationships with Ontarians, are accepted as an Ontarian, identify yourself as an Ontarian, and work for the benefit of Ontario. Therefore, you should pay Ontario's lower tax rates.

Tax Dodge Strategy 4:

Ms. Shilling argued that the income tax exemption requirement - residency on the reserve - "discriminates on the basis of where she lives" and therefore violates the Charter of Rights and Freedoms.

Hence, Manitobans are discriminated against because we don't live in low-tax Ontario. So instead of moving east just to pay lower taxes, you can stay put and pay reduced Ontario taxes anyway.

This pathetic court ruling divides, and taxes Canadians by race and should be struck down by a higher court for that reason alone. All Canadians are equal under the law and equally deserve lower taxes.