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Agreement Near In Tax Issue

SASKATCHEWAN INDIAN      FALL 1987      p07  
It would appear the FSIN and the Federal Government are moving closer to an a agreement toward a resolution on the issue of taxation of Indian income.

The FSIN have always taken the position that Indians are not subject to income tax under provisions made at the time of treaty.

Lately, Revenue Canada as begun collection proceedings on treaty Indians and in some cases have garnisheed substantial sums of money.

In recent discussions between Revenue Canada and the FSIN Executive, Revenue Canada recommended a moratorium on collection until the issue was dealt with political or legal solutions. In total, six points were raised and the FSIN Executive will recommend them for adoption by the Chiefs.

These points are:

That the Federation of Saskatchewan Indian Nations and its affiliated institutions conditionally comply with provisions of the Income Tax Act based on the withholding of percentage deductions made prior to 1985.

That this compliance be on a strictly without prejudice basis; meaning thereby that this compliance will in no way compromise our past, current and future Treaty position.

That this compliance be made on the condition that the principal, interest and penalties which were and are owing to Revenue Canada by individual Indians based on arbitrary assessments will be remitted.

On the future condition that collection proceedings will cease forthwith until a political or legal resolution of the Treaty and other related issues are dealt with as formulated by our legal counsel and submitted to Revenue Canada.

On the further condition that the outstanding Treaty issues be dealt with through a process and, where possible, a time flame worked out between the Ministers of National Revenue, Finance, and Indian Affairs and ourselves.

On the condition that a procedure or mechanism be implemented whereby interest and penalties on the outstanding balances be held in abeyance until the Treaty issues are dealt with through a process mutually agreed upon.

Second Vice-Chief Wayne Ahenakew stated, "If this process is adopted we hope the financial burden will be lifted off the shoulders of former employees through a revision order. "

"At the same time our Treaty position will be dealt with either politcally or legally within a certain time frame," Ahenakew stated.