Eastern Door Volume 4 Number 13

Volume 4 Number 13

April 28, 1995

Government: Indians To Tax Indians
By: Kenneth Deer - The Eastern Door

In recent Canada/-Kahnawake Relations discussions with representatives of the Federal government, the Mohawk Council of Kahnawake delegation discovered certain elements of the current 'thinking' within the Federal Finance Department regarding Indians and Taxation.

In a letter (See Page 7) to the MCK, a government negotiator writes that taxation powers will be limited to 'property taxation of first Nations citizens,' and 'direct taxation of First Nation ... for First Nations government purposes.'

These powers also do not limit any other government from levying taxes or making taxation laws on First Nations.

Furthermore, the government refuses to entrench these powers, such as they are, in any treaty or constitutionally protected agreement.

In essence, this position gives the right to Native Governments to tax its own people to operate First Nation governments. It implies, by omission, that non-Natives are not subject to First Nations taxation laws.

It also implies that Indian Act tax exemptions outlined in Section 87, that property of Indians are not taxable, will be subject to any new legislation. The government's position is that tax exemptions are not inherent rights but rights given by the government and can be revoked at any time.

The MCK has responded fiercely, directly to the Minister of Indians Affairs. (See page 7) Although it has become more and more obvious in recent times that the Federal Departments of Finance and Revenue have no respect for the historical, legal, inherent and treaty tax immunity rights of the First Nations of Canada, the memo appears to be the first written confirmation of that fact.

LETTER FROM GOVERNMENT TO MCK ON TAXATION - (PAGE 7)

Mohawk Council of Kahnawake

Re: Tax Policy for Self-Government Negotiations

As discussed at our meeting of March 23, 1995, I am providing you with the current position of the Federal Government with respect to taxation authorities in self-government arrangements.

As noted, it is not intended that the broad powers of taxation negotiated pursuant to this as any self-government agreement will receive constitutional protection or be entrenched in any treaty.

The general tax provision provided to Kahnawake will therefore be limited to:

1.0 a) property taxation of First Nations' citizens, for local purposes, with respect to First Nations land including assessment, collection and enforcement procedures and appeals relating them to, and;

b) direct taxation of First Nations' citizens within First Nations' lands to raise revenues for First Nations' government purposes.

2.0 The First Nations' government power provided for above shall not limit any other government's powers to levy tax or make taxation laws.

In addition to the above it is the general position of government that any other taxation matters subject to a negotiated agreement will remain outside any treaty or constitutionally protected agreement and will be subject to existing or any new legislation as may be amended from time to time.

This position included the current Indian Act provisions under Section 87. It is not intended that this provision will be entrenched in a treaty or constitutionally protected agreement nor is it intended to place a First Nation at a comparative disadvantage with other First Nations.

It is still, however, the Federal Government intention to negotiate with Kahnawake a taxation agreement which will provide, as close as possible, tax powers available to other government and unsure to Kahnawake a base upon which to build and support many of its government activities.

This note is provided for discussion purposes at our next meeting, however, I intend as soon as possible to meet with the tax policy officials to further discuss this matter. At that time, I would be in a better position to expend upon discussion.

I have also attached for your information a copy of the taxation authorities granted under the Yukon Self-government agreements for you information and to aid in our discussions.

From: First Nations Relations

RESPONSE FROM THE MOHAWK COUNCIL OF KAHNAWAKE (PAGE 7)

Honourable Ron Irwin

Minister of Indian Affairs & Northern Development

House of Commons

583 Confederation Building

Ottawa, Ontario

K1A 0H6

Wa'tkwanonwera:ton:

Re: Taxation Policy for Self-government Negotiations- April 6, 1995

In a recent briefing regarding the status of Canada/Kahnawake Relations negotiations, correspondence which outlines the Federal government's "Taxation Policy for Self-government Negotiations" (copy attached), was brought to our attention. I have been instructed by the Mohawk Council of Kahnawake to respond to this 'current position' of the Federal Government regarding the issue of taxation. The Council does not normally get directly involved in the day to day deliberations of the C/K Relations negotiations, however, the position outlined is so outrageous and so totally unacceptable that we must intervene.

First and foremost, the position is hopelessly paternalistic and condescending, and in no way reflects the spirit and intent of nation to nation or government negotiations. The 'fait-accompli' attitude reflected in your position defeats the entire purpose of negotiations and seriously breaches the principles that have already been agreed with respect to peaceful coexistence, harmonization and sharing.

The second point that must be addressed is that your position intentionally ignores the position of the Mohawks of Kahnawake as follows:

"It is recognized and affirmed that the Mohawks of Kahnawake have the inherent power to enact legislation with respect to the establishment of institutions, procedures, and mechanisms for all matters relating to eh tax immunity status of Kahnawake citizens, Kahnawake government, Kahnawake created entities and institutions, including but not limited to entering into agreements with other governments to ensure that all Mohawks retain and maintain taxation immunity status as provided by their inherent rights, current legislation, treaties or other agreements."

This is the position that must be addressed.

We fell that it is important to remind you that the Mohawks have already paid dearly with respect to our donation to the well-being of Canada. The basis of our livelihood and the foundation of our cultural and territorial integrity - our land, has been misused, abuses and dispossessed. Your policy blatantly denies historical and legal understandings that we withhold sacred. Assimilation seems to be the main theme that underpins this administrative policy initiative and it contemptuously subverts the principles and understandings of the Two-Row Wampum arrangement to which we are jointly bound. Kahnawake has always promote the equitable distribution of wealth and it's unconscionable for the Federal Government to unilaterally impose its formula of wealth distribution on the Mohawks of Kahnawake.

The Canada/Kahnawake Relations process is a stand alone process that is founded on mutually agreed principles. We are supposed to be jointly engaged in this process to displace the distasteful and paternalistic applications of the Indian Act through the re-establishment of the relationship that recognizes and respects the legitimate and inherent jurisdiction of the Mohawks of Kahnawake to govern our own affair without external interference. We are supposed to be engaged in a process that establishes contemporary intergovernmental relations based in mutual respect for our respective institutions, cultures, languages, traditions and laws based in cooperation and equality. The integrity of the process is in serious jeopardy if the Federal Government continues to portray the Mohawks of Kahnawake as wards or vassals.

We would strongly suggest and urge the Federal Government to rethink their dominant and one-sided policy perspective on this issue of taxation. Canada and Kahnawake have entered into this exercise on the principle that "the negotiations will be conducted in good faith, in a spirit of equality, sincerity, mutual respect and with a view to progress towards economic coexistence" (Annex C, article (d) Framework Agreement). The stated position of the Federal government obviously breaches the aforementioned principle and we find this abhorrent. The consequences of the present "federal thinking" will result in a severe backlash from the people of Kahnawake.

We expect nothing less than the Federal Government to disown itself from the stated policy and re-enter the Canada/Kahnawake Relations negotiations process with a clear perspective on the objectives of the exercise.

We have spoken,

Mohawk Council of Kahnawake

Joseph Tokwiro Norton,

Grand Chief

RETURN

New home for the Native Friendship Centre
Future Montreal Native Friendship Centre on the corner of St. Laurent and Ontario streets
By: Chuck Barnett

From the look on Executive Director, Ida LaBillois' face, it appears that the search is over. The new site for the Centre, which currently provides services to over 16,000 Aboriginal people a year, will be located on the corner of St. Laurent and Ontario street in Montreal.

The projected date for the move is September 1st, however this is contingent on bank approval. Although the Native Friendship Centre's Capital Campaign Committee has managed to secure $110,000 toward the purchase of the new building , the search for donations continues more heartily than ever before.

The capital Campaign Committee, which was formed in 1988, had been assigned the task of finding the funding with which to purchase a new sit for the now overcrowded Friendship Centre.

Attaining this goal has proved to be a "roller coaster" of emotions for the Centre's staff, who in 1993 believed that they had finally found a new location to house the Centre's services. Unfortunately this was not to be the case, as it was discovered that the site, located on Amherst street, required an extensive contamination cleanup at a heavy cost. A cost that the bank overseeing the loan, stipulated the Centre pay for. Already strained for money, the Centre was forced to look elsewhere.

Now two years later, the NFCM believes that they have found the ideal site. The four story building will, as Ms. LaBillois states, "provide sufficient room for the Centre to grow into."

Located conveniently downtown, near two metro stations, the building will allow the Centre to add more services to its already growing list of 80. New services will include; a children's activity area, employment training facilities and a much needed kitchen and cafeteria. Once the new building has been both secured and renovated by the Centre, the intention is to open a catering service from the kitchen, to offset the cost of the building's maintenance.

Ms. LaBillois is also quick to note that among the new services offered at the Centre would be a commercial casting agency to meet the growing demand for Native talent in this country's television and film industry, this too would help to provide additional income for the Centre.

Still, there is no rest for the NFCM Capital campaign committee, as their job is for from over. There still remains a substantial amount of money to be raised if the Centre is to actually fulfill the objective of raising enough capital in order to secure a mortgagee loan for the new building. One opportunity to help support the purchase of the new Centre will be the 3rd Annual mukushan Feast of Friendship that will be held on June 2nd at the Montreal Botanical Garden. The location for the event was generously donated by the administration of Montreal Mayor, Pierre Borque.

Among the many talents on hand to perform will be singer, Tom Jackson, as well as K103 Kahnawake's own morning man, Joe Delaronde who will be acting as master of ceremonies. This will definitely be a must-see event. All profits from the 3rd Annual mukushan will go toward financing the new building.

Ms. LaBillois comments, "although the Native Friendship Centre'[s current location has become a familiar sight for Montreal's Native people over the past 17 years, we have outgrown the walls and it is time for us to move on to a bigger home."

In this case it appears that bigger is better.

For more information about the 3rd Annual Mukushan, contact the Native Friendship Centre at 514-937-5338.

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Skating Gala A Smash
By: Harley Delaronde

An appreciative crowd of well over 700 people were treated to a variety of figure skating routines last Sunday at the Kahnawake figure Skating Club's inaugural "Show on Ice" held at the local Sports Complex.

The show, which spotlighted the year long work and efforts of 92 Kahnawake skaters between the ages of 3-12 along with their coaches, proved to be a resounding success.

A total of 18 routines, ranging from coach Irene Harney's opening solo to the round dance done by the entire skating club in traditional dress, kept the crowd entertained throughout.

Co-founder and organizer Vanessa Rice opened the show with a brief welcome and mentioned how this was a "special and memorable day" for all. Her words would certainly ring true as the afternoon progressed. Proud parents and family giving gifts of flowers to skaters young and old alike, beaming youngsters waving to the crowd and special guests displaying impressive talent and teamwork all served to highlight the show.

When the lights dimmed and the spotlight fell on 17 year old Chateauguay resident Harney as she began her routine, one could almost imagine for a brief second being at a professional skating revue. Harney's series of double jumps and spins to the strains of "I'll Always Be There" immediately got the crowd in the mood for the rest of the afternoon. Next up was a young group of girls in colorful costumes doing a routine to the tune of "The Bare Necessities", followed by another group skating to the song "Cocktails". Jason Harney, brother of Irene and also a resident of Chateauguay, then entertained one and all with a very artistic skate to the theme from the movie, "The Mask". Another very young group outfitted in very Pebbles-like costumes then had everyone smiling and humming along to the tune of "The Flintstones". The 60's crowd was the next target as "Locomotion" echoed through the arena.

Another solo was performed by coach Natalie Viau to the song "You're the Devil in Disguise". Judging by the applause, the next routine "The Lion King" was one of the most popular. Combining lion costumes, some imaginative moves, and the popularity of the movie, one could certainly understand why.

The club coaches, Allyson Rennie, Kim Rennie, Kwetiio Goodleaf, Shelly Jacobs, Tanya Roper, Colleen Wilkinson, Viau and the two Harneys then performed an entertaining number to the tune of "Wild Thing".

Capping off the first half of the show were a group of special guest from Chateauguay, "Les Chatelaines".

Their youngest team displayed some impressive teamwork and fancy footwork to "Hello Dolly".

After a brief intermission the intermediate group of "Les Chatelaines" showed why they've gained such a fine reputation in skating competitions by laterally dazzling the home town audience. Not only will they be remembered for their skating talents, but also for their enthusiasm and team spirit.

The very youngest group of skaters then carefully stepped out from behind the curtain to the notes of "Little Bitty Pretty One'. The next routine was done in a somewhat bubbly fashion to "The Little Mermaid". Tanya Roper then gave a performance to "The Power of Love". Although it was Sunday afternoon, the next group had everyone humming to "Saturday Night". This was an interesting collaboration between a group of students and some of the coaches. The Harney siblings then gave an exciting yet graceful performance to "Jailhouse Rock".

Another rocking song, "After Midnight" further helped to display the skills of an older group of girls.

Rounding off the nearly three hour show, the Kahnawake skaters and their coaches, most of them outfitted in ribbon dresses or shirts, skated out and joined hands to the familiar sounds and drumming of "The Round Dance", a fitting way to point out the teamwork, friendship and cooperation that was needed to pull off this event.

The show ended an initial year for the club which had begun with co-founders Rice and Valerie Lahache hoping to attract about 25 interested skaters. The interest exceeded their expectations and coupled with the recent news that the club has been accepted as a member of the Canadian Figure Skating Association, bodes well for the future of the sport in Kahnawake.

Certainly a great deal of work lies ahead, but with an energetic and committed group of organizers, parents and coaches who were capable of pulling off a show such as this, just about anything is possible with continued community support.

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Editorial

Government tips its hand in taxation negotiations
By: Kenneth Deer - The Eastern Door

A recent document from the Canadian Government on Tax Policy for Self-government Negotiations is everything that Aboriginal People have feared.

This document clearly states that taxation powers to be given to First Nations are intended to force First Nations Governments into taxing their citizens to support their operations. By giving this power to Band Councils, the Government can then cut back on funding First Nations and abandon its fiduciary responsibilities.

Not only will we be taxing ourselves, but tax exemptions under Sections 87 are not guaranteed and will be subject to changes in legislation in the future. Although the government has always had this power to change legislation, by stating this in their policy, it means they must be considering such legislation sometime in the future.

Another disturbing new development mentioned in the policy, is the right for other governments to levy taxes on First Nations. This means that not only can the Federal Government levy taxes on Indian land but Provincial Governments can do so as well. This is not limited to taxes on property, but applies to income and sales taxes as well.

The policy seems to exclude the power of First Nations to tax non-Natives on their territories. Some First Nations, in the Kamloops area for instance, have fought hard for this right to tax non-Native companies leasing and operating on their land. It seems this taxation right is not in the global plan of the government.

This policy is the embodiment of the 1969 White Paper and later, the Neilson Report, which recommended the reduction and elimination of services to Native Peoples. The Neilson Report recommended that the Government withdraw from all services not specifically covered by Canadian legislation. Programs such as post-secondary education, housing, health, and others would not be funded. The suspicion is that the taxing powers given to First Nations would allow the government to cut funding in these areas.

While 'Inherent Rights' are the basis of negotiations across Canada, the Government has unilaterally decided that taxation powers and tax exemptions are not part of these rights. The Departments of Finance and Revenue have taken a hard line by claiming that only they have these rights and powers and they have no intention of allowing First Nations any further tax exempt status than presently in the Indian Act. Furthermore, the Canadian Government suggests that the elimination or reduction of Section 87 and other sections of the Indian Act, is a distinct possibility.

As for treaty rights, the Government will only recognize one treaty, Treaty 8 in Alberta, which specifically states that Natives covered by this treaty will never be taxed. Since this is the only treaty which exempts Natives from taxation, the government is not obligated to extend that right to other Natives.

Rumors have been circulating for years that the elimination of fiduciary responsibility was the intent of self-government negotiations but now its in black and white. Natives from across Canada should take a hard look at the document obtained by the Mohawk Council of Kahnawake and understand the real dangers of Canada's Policies. The entire concept of inherent rights, reparations for occupied territory, fiduciary responsibilities and simple justice for our People is at stake.

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