Mi'kmaq leaders say no dice on CRA's $53M tax assessment

Nova Scotia Mi'kmaq are joining the McNeil government in opposing Ottawa's decision to tax revenues generated by video lottery gambling on First Nations in the province.

"The [federal]government is trying to earn some more revenue off our backs, which I don't think is fair atall," saidMembertou First Nation Chief Terry Paul, a co-chair of the Assembly of Nova Scotia Chiefs.

Since 2013, the Nova Scotia government has reluctantly paid $53 million in HSTthe Canada Revenue Agency says is owed on band video lottery revenues.

The CRA assessment going back to 2009 upended a longstanding arrangement between the province and bands. Individual Band Gaming Agreements allow First Nations to keep all VLT revenues tax free. Those VLTs are pumping about $40 million a year into Nova Scotia band coffers.

Paul saidFirst Nations have an Aboriginal treaty right to conductgaming.

"We set that aside to make an agreement with the government, with the provincial government, that at least we were earninghalf-decent revenues," he said Thursday, during a break in a meeting of First Nations leaders attending the Atlantic Policy Congress.

"With that, we were able to address a number of projects and needs in the community."

Nova Scotia's Liberal government appealedthe CRA assessmentin the Tax Court of Canada late last year after the federal minister of revenue rejected Nova Scotia's objection.The province hopes to recover the $53 million.

"We did what we believe was within the law with our First Nations communities," Premier Stephen McNeil told reporters this week after a CBC News investigation revealed the tax dispute.

"We'd like to see the federal government step up."

Chiefs welcomeprovincial backing

Paul said he's glad the province has taken that stance, but there are other issues to also address, including taxation authority.

He is calling on both levels of governmentto allow First Nations to levy their own taxes on reserves, which Paul saidwould help Mi'kmaq achieve self-government.

Paul sidestepped the awkward question of what happens if the Canada Revenue Agency wins in tax court; that is,will the bands or the province pay the tax.

He is reluctant to reopen band gaming agreements, which have set the rules governing VLT gaming since the mid-1990s.

"We don't feel we should. There are terms and lifespans on the agreements at least abide by that. In the meantime, let's get serious about what we are talking about and what we feel is a necessity for us to move on our right of self-government, and that is taxation authority."