Yes, Hutterites DO pay taxes.

Have you ever had a climate change debate on Twitter that usually doesn't head south? Yeah, I know, they are very rare. So, the other day I had such a debate that ended up with the classic jab at me: "Well I probably pay more taxes than you anyways, so just shut up and pay the carbon tax.”

How do you respond to mythical comments from people who simply repeat what they hear or read in a comment section of the local tabloid somewhere and instantly accept it as fact without even questioning that probability of it being a ridiculous statement? Or never even bother to spend 2 minutes on a search engine on the subject? The reality is that you can't, and any attempt to bring fact into the discussion is often futile because the person your debating, already has preconceived ideas about you and so desperately wants them to be fact in order to strong arm the debate.

We live in the greatest time imaginable, where information is at the fingertips of everyone and yet it is amazing how many people still believe that we do not pay taxes. Granted, we were given a Tax Exemption way back when we first established in Canada, but that was because the Canadian Government had no idea what made us tick, or how to tax us because there was nothing in the Income Tax Act that remotely applied to Communal Organizations, which own all things in common, so it was much easier to exempt us until rules could be established. In 1961, section 143 was added to the Income Tax Act, the exemption lifted, and rightfully so because by then most Hutterite Communities were contributing to the local economy, despite the media reporting otherwise.

Section 143 made clear that Hutterite Colonies should be “taxed in the same manner as their non-Hutterian neighbors”, that is “be treated favorably, but not more favorably than other taxpayers”. 

The Income Tax Act has evolved since then, except section 143 was left untouched and without getting into the technical details, the original intent was no longer achieved. Canada Revenue Agency (CRA) then changed the Income Tax Return Form and Hutterites could no longer claim the Working Income Tax Benefit (WITB) because the CRA rule change. This prevented Hutterites from allocating reasonable income to kids under 18 years of age while Non-Hutterites were free to do so. They also added a gender stipulation where a married partner is recognized as a spouse and the "spouse" only recieved a half share of allocated Income proportionate to their partner. Nowhere else in the Income Tax Act is gender applied in any way. In short, this is blatant gender discrimination against Hutterite women. Because of all this, approximately $30 million is being withheld by the CRA and the Canadian Government. This flies in the face of PM Justin Trudeau feminist 2017 Budget which is focused on Gender Equality.

The famed tagline in the budget brief:

Equal Opportunity for Women and Men
Budget 2017’s Gender Statement sets a new bar for openness and transparency by examining the ways in which public policies affect women and men differently. With this Statement, the Government is building on its existing use of gender-based analysis to ensure that: its decisions deliver results that are more equitable and fair; there is a continuing conversation around the need for more equal wages and a more diverse workforce; there is greater representation of women in positions of leadership in both the public and private sectors; and there is a reduced risk and occurrence of gender-based violence.

MNP, an accounting firm serving a clear majority of the Hutterite Communities has been fighting this for some time now and on Mar 29, 2018 Hutterite Representatives along with four of the top CRA officials appeared before the Standing Senate Committee on Banking, Trade and Commerce and gave testimony on the case which has made its way into the tax courts.

The Public Hearing is available here, and it is beyond me why the CRA let themselves be dragged before this Committee because they had absolutely no defense and the only thing they offered was bureaucratic arrogance with zero knowledge of our way of life, and their position on the matter was indefensible.

I have worked with MNPs Tax Leader Michelle Janz CPA, CA and John Waldner in the past and they are sharp, smart, great people and clearly the best choice to play a central role for this hearing, so Kudos to them.

So, in summary, living in Canada where “diversity is our strength” and “Gender Equality” supposedly, it can cost an average Hutterite family approximately $15,000 a year in extra taxes JUST to be Hutterite and for all those who still think that we do not pay taxes, let that sink in for a bit.

Aside from this issue, we have a lot to be thankful for that far outweighs any of the challenges we face today. As Hutterite Christians, we have lived and prospered in Canada and the United States in peace, and enjoy tremendous Freedom of Religion which is essential to our way of life and our Culture.  We do not want any selective exemptions nor selective restrictions either, just treated fairly so that we may remain united with our rural friends and neighbors in our Communities on issues like Farm & Ranch policies that effect us all.

Image source: Kelly Hofer