Band sues Saskatchewan over tax seizures

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Ochapowace First Nation is suing provincial finance minister Janice MacKinnon and the Saskatchewan government over the province's seizure of band money.

The lawsuit may go beyond the $1,068.90 which the provincial government sized from the band's bank account, said Kevin Mellor, a Regina lawyer hired by the band for the legal case.

The province and several bands, including Ochapowace, have been disputing tax enforcement on reserves since last summer. The province says it has the right to apply its nine per cent sales tax on goods sold on reserves, while the band says the treaties and the principle of self-government prevents the province from collecting the tax revenues.

"The underlying theme is that the band has tried to discuss its inherent right to self-government and taxation, while the province has refused to discuss this," Mellor said.

"Seizing the money from their bank account on one hand and refusing to negotiate on the other hand doesn't show good faith bargaining."

In February, the provincial department of finance sent a $1,068 bill to Ochapowace, which was an estimate of how much provincial tax should be collected at a band-run grocery store.

The department seized the money from the band's account a week later, according to a statement of claim filed in Court of Queen's Bench.

The band is suing the province and MacKinnon for its money back plus $50,000 in punitive damages.

No trial date can be set for the suit until the province and the finance minister file statements of defence, Mellor said.

MacKinnon was unavailable for comment as of press time. She told the Regina Leader-Post that she won't discuss individual tax files and she knows nothing about the lawsuit.

The Department of Finance can seize money from businesses which have not remitted their taxes, she added.