The IRS has made a clear statement with regard to the tax exempt status of Native Americans:
This revenue ruling emphasizes to taxpayers, promoters, and return preparers that there is no right to exemption from federal income tax for Native Americans under an unspecified “Native American Treaty.” Any return position based on an unspecified “Native American Treaty” has no merit and is frivolous. As a general rule, Native Americans are subject to federal income tax just like every other American.
This would mean that any claim to tax exemption on the basis of Canadian tax law would also be frivolous. Now it may be interesting to cite Article 25 of the Canadian Charts of Rights and Freedoms:
25. The guarantee in this Charter of certain rights and freedoms shall not be construed so as to abrogate or derogate from any aboriginal, treaty or other rights or freedoms that pertain to the aboriginal peoples of Canada including
- (a) any rights or freedoms that have been recognized by the Royal Proclamation of October 7, 1763; and
- (b) any rights or freedoms that now exist by way of land claims agreements or may be so acquired.
Article 25 would seem to suggest that Finance Minister Jim Flaherty does not have the authority to abolish the right to tax exemption of Canadian aboriginals. Flaherty however has essentially claimed that all Canadians of US national origin are subjects of the IRS; this would mean that an aboriginal Canadian would lose tax exemption and would have to pay taxes in the USA. This is most obviously quite another breach of the Canadian Charter of Rights and Freedoms, and a clear setback for aboriginal peoples of Canada who happen also to be US persons.
Now this particular violation of rights does not affect me. However, I am of American origin, but my grandparents on my mothers side came from Korean. My grandmother was from North Korea. My grandfather was from the South. I respectfully request that Mr. Flaherty send my bank account information to Seoul and to Pyongyang. I will then pay what normally I would have to pay only the CRA as follows in equal fractions: one part to Seoul, one part to Pyongyang, one part to Canada, and one part to the United States. My father was of Scottish and Irish descent, and so I guess Edinburgh, Dublin and Belfast should each get a part too.
Of course I have a CLN, so I can legally skip the part to the USA.