Race-based Tax Exemption Unconstitutional
Author:
Mitch Gray
1999/10/05
EDMONTON: The Canadian Taxpayers Federation today announced that it will seek intervenor status in a court battle between the federal government and Treaty 8 Indians over the tax status of aboriginal Canadians.
A number of Treaty 8 Indians have filed a statement of claim in the trial division of the Federal Court of Canada alleging that "the imposition of any tax on the Plaintiffs is an unjustified breach of Canada's fiduciary duty to the Plaintiffs, as members of the First Nations." The Plaintiffs contend that Treaty 8 Indians are exempt from paying taxes on anything, anywhere in Canada at any time.
"The CTF supports the concept and application of equality before the law for all Canadians," said CTF Alberta Director Mitchel Gray. "A favorable ruling for the Plaintiffs in this case would result in a race-based tax system where some Canadians are penalized because of their ethnic origin."
Although there is no reference to taxation in the Treaty itself, the Plaintiffs claim that a verbal promise of tax exemption was given to their ancestors during negotiations in 1899. The federal government denies that any promises of a tax exemption were ever made. The government of Alberta will also be intervening in the case -- the outcome could effect the province's ability to tax Treaty 8 Indians. Municipalities may also be affected.
The Federation suggested that the question of whether or not a promise of a tax exemption was ever made is a moot point. "What matters is what the Constitution says about equality," said Gray. "Section 15(1) of the Charter of Rights and Freedoms is unequivocal in stating that every individual 'has the right to the equal protection and equal benefit of the law without discrimination.' The Charter overrides all discriminatory laws and agreements."
Gray said that the Treaty 8 case is bound to have far reaching consequences. "Should the plaintiffs succeed, other Treaty and non-Treaty Indians will attempt to use the case as a precedent. It's possible that the total exemption of Indians from taxation could extend throughout Canada as a result of this action. This is something we cannot and will not accept."