The Myth of Taxation

I looked into the myth of taxation. Growing up and still to this day I always hear lots of discussion about how indigenous people do you not have to pay tax. Along with not paying taxes they also when working they don’t get taxed on their income. This was something I was I was curious about because like most people you’re curious to why and how indigenous people may not have to pay taxation where everyone else has to. As I begin reading the chapter The Myth of Taxation from Chelsea Vowel, she goes into great detail breaking down the taxation rules that so many others seem to know so much about. The one point in the book she kind of called out majority of the people and first asked if they ever not claimed money to avoid paying taxes on. Such as tips from waitresses, people who offer services from their house or side jobs such as cutting grass. That was a topic I never even thought to address because I know many who have picked up side jobs or do something for a little extra cash and I’m assuming they don’t add tax on it to give to the government. Yet no one makes a big stink about those people not paying taxes on that money.
So to break it down only status Indians are eligible for the Indian act exemption, Nonstatus Indian, Métis in anyway it or not covered.
Status Indians who are not living on reserve land are not eligible for this exemption unless they purchase goods and service on reserved.
This exemption also extends to federal taxes on goods purchased off reserve,if they are delivered to the reserve by the retailers. If the status Indian wants to transport goods back to the reserve, they are not exempt.
Services provided on reserve are tax-exempt. Where services provided off reserves are not exempt, unless under section 90 of the Indian act.
If you’re working off reserved the tax exemption does not apply and you’re paying income tax even if your employer is situated on the reserve. (Vowel). Pg. 138.
Although I just broke down some of the many different highly confusing and technical situations on the taxation situations. I have learned that this myth about indigenous people never pay tax is definitely not true as well as completely confusing, there are many different scenarios as well as laws they have to follow up regarding whether or not they pay tax on land, goods and services. “Only the Mohawk Kahnawake have signed an agreement with the provincial government that includes a waiver of provincial tax sales. This is not an Indian act exemption, it is a contract between the Mohawk Council of Kahnawake and the government of Quebec. (Vowel pg.139).” Here is another situation where many people would not know of that agreement between the two parties but yet would gladly tell people false information. After reading about these missed and how clearly Chelsea breaks down this highly confusing topic I feel people should not speak to something that is clearly not just black-and-white.


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