Nunavut property owners owe nearly $3.3M in tax arrears - Action News
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Nunavut property owners owe nearly $3.3M in tax arrears

Property owners in Nunavut, excepting Iqaluit, owe the government nearly $3.3 million in property tax arrears, according to a list released this week. About half of that is owed by Shear Minerals for its abandoned Jericho diamond mine.

About half of that is owed by Shear Minerals for its abandoned Jericho diamond mine

Prime Minister Stephen Harper, right, poses with then-Indian and Northern Affairs Minister Jim Prentice, left, and Tahera Diamond CEO Peter Gillin, in front of the mining pit at the official opening of the Jericho Diamond Mine in August 2006. Tahera sold the mine to Shear Minerals in 2010, which now owes about $1.5 million in property tax arrears to the Government of Nunavut.

Property owners in Nunavutowe the governmentnearly $3.3 million in property tax arrears, according to a list released this week.

The list encompasses all property taxes in arrears in Nunavut communitiesother than Iqaluit.

Jeff Chown, comptroller general for Nunavut,says publishing this list is one of the ways they'relooking at improving the collection of outstanding debt.

"Up until recent times we have not charged interest on our property taxes," he said. "But we do charge interest now and our current rate is 4.25 per cent."

Not everyone thinks the government's list of arrears is correct.According to the GN,Aziz Kheraj owes more than $26,000, including $1,900for a property in Arctic Bay and $3.100for a property in Pond Inlet.

Kheraj says that's not possible.

Aziz Kheraj says the properties in Pond Inlet and Arctic Bay on which the Government of Nunavut says he owes tax arrears were sold to new owners 20 years ago. (CBC)

"They had us listed for properties in Pond Inlet and Arctic Bay which we haven't owned in 20 years," he said.
They've all beensold."

Compared to Shear Minerals, Kheraj is small potatoes.

The mining company owes more than $1.5 millionin property tax arrears on itsabandoned Jericho Diamond Mine.

Chown says the government will be keeping the Shear Minerals debt on the books.

"At this point the GN is taking a wait and see approach regarding Shear Minerals.The federal government could potentially find a private partner to take over the property, in which case the property tax debt would transfer to that property owner."

Overall,Chown says 88 per centof property owners in Nunavut are ingood standing on their taxes, andnearly half those in arrears oweless than $1,000.

By comparison Iqaluit has more than $3 millionin unpaid property tax from 72 properties.