New tax law a 'touchy issue'

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A new federal bill which would authorize bands to levy taxes on reserves and lease land to outsiders is a "touchy issue" for bands in this province, says the president of the Indian Association of Alberta.

Gregg Smith fears the taxation bill is being viewed by the federal government as an Indian self-government issue, "in order to justify their desire to get out of trust responsibility."

He agrees with statements made by Assembly of First Nations officials giving bands greater taxation powers could be an excuse for Ottawa to let go of some of its financial responsibilities to Indian people.

The amendment to the Indian Act will remove the ambiguity over the legal status of leased reserve land. It also states leased land remains a part of the reserve and band councils have the power to ta reserve land in order to defray the cost of development and services on land.

The bill, which has gone through a first reading, was initiated by Clarence Jules of Kamloops Indian band, and was introduced into the House of Commons on Mar. 9 by Indian Affairs minister, Bill McKnight. The band promoted the bill in order to gain tax authority over a 180-hectare industrial park situated on the reserve.

"This bill is the result of the first major Indian-led initiative to amend the Indian Actit ensures further progress towards Indian political economic and self-reliance," said McKnight in a news release.

But Smith says the government is "looking at it in terms of self-government issue. And we're saying no. That kind of delegated authority is not self-governmentself-government is not what the federal government proposes it to be for Indian peoples".

In addition there is the cost factor to bands. "It's a very expensive proposition. Tax regimes are quite imposing in terms of style and expense."

He is also concerned about the bill's power to allow bands to tax their own membership. "We say that we're taxable by Treaty and why would we want to have the power to tax our own people?"