From the Frontier Centre for Public Policy 

Canada Needs a Public Inquiry into the “Kamloops Graves Hoax”

Call for a public inquiry is a step towards uncovering the truth and ensuring such a national scandal never happens again

WINNIPEG, June 28, 2024 – The Frontier Centre for Public Policy is urgently calling for a public inquiry into what has become known as the “Kamloops Graves Hoax.” The May 27, 2021, claim by the Kamloops Indian Band regarding the discovery of “human remains” in the apple orchard area of the former Kamloops Indian Residential School caused national hysteria and moral panic, both domestically and internationally. However, recent admissions have revealed these claims to be false.

In a press release issued three years after the sensational claims, Chief Roseanne Casimir of the Kamloops Indian Band finally admitted that there were no “human remains,” “bodies,” “graves,” or “mass graves” found at Kamloops. What was initially reported as grave sites turned out to be mere soil anomalies, which could easily be attributed to tree roots, rocks, or remnants of prior excavations. Notably, a 1924 excavation in the same area was likely the source of the detected soil disturbances.

The 2021 claims triggered a wave of national and international reactions, including lowered flags, burned churches, and widespread media coverage. These events also prompted the ailing Pope to visit Canada, led MPs to condemn their own country as genocidal, and resulted in the enactment of costly legislation. The Canadian government allocated millions of dollars towards the search for “missing children,” who, as it turns out, never existed. The entire episode is a blemish on Canada’s history, highlighting the need for a thorough public inquiry.

Chief Casimir stated that the initial claims were based on a ground-penetrating radar (GPR) report prepared by Sarah Beaulieu, a young anthropologist from the University of the Fraser Valley. However, it is widely known that GPR can only detect soil anomalies, not graves or human remains. The actual content of Beaulieu’s report remains undisclosed, as the Kamloops Indian Band has refused to release it despite initially promising to do so. This raises serious questions about the veracity of their claims and the possibility that the band knew the information was false.

The Kamloops Indian Band applied for and received $8,000,000 from the federal government based on their false claims. Neither the band nor the federal government has provided details about the representations made to secure these funds or how the money was spent, especially given that no excavation has taken place.

The refusal of the Kamloops Indian Band to release the GPR report, coupled with the federal government’s silence on the matter, indicates a need for a thorough investigation. The Royal Canadian Mounted Police (RCMP) will not investigate unless requested by the Kamloops Band. This leaves the Canadian public in the dark about how and why millions of taxpayer dollars were spent based on a false premise.

The claims made on May 27, 2021, have caused significant disruption in Canada, damaged the nation’s reputation, and led to misleading narratives being taught in schools. It is crucial to understand how these false claims were propagated and why. A public inquiry is essential to provide clarity and accountability and to restore public trust.

The Frontier Centre for Public Policy calls for this inquiry to ensure transparency and address the grave mistakes that have been made. Canadians deserve to know the truth and to hold accountable those who have misled the nation.

About the Frontier Centre for Public Policy

The Frontier Centre for Public Policy is an independent, non-partisan think tank that conducts research and analysis on a wide range of public policy issues. Committed to promoting economic freedom, individual liberty, and responsible governance, the Centre aims to contribute to informed public debates and shape effective policies that benefit Canadians.

From the Frontier Centre for Public Policy

By Ian Madsen

Business groups are justifiably opposed to the federal government’s June 25 increase of the inclusion rate for capital gains tax. But there is another corporate income tax increase looming. It will come in the form of a 2018 corporate tax reduction that is set to expire starting this year. Ottawa ironically intended it to make Canada more competitive amid the 2018 tax reform and cut in the United States.

According to a study by Trevor Tombe at the University of Calgary’s School of Public Policy, Canada’s corporate income tax rate on new investments will jump from 13.7 percent to 17 percent by 2027. Even worse, for Canada’s high-value-added manufacturing sector, taxation will triple. Higher corporate income taxes, in a nation experiencing difficulties in encouraging domestic or foreign investment in new plant equipment, will struggle to reverse meagre productivity growth—a problem noted by the Bank of Canada.

Heavier taxation will hinder future improvement in incomes and the standard of living, making it a serious issue. Increasing income tax on businesses and investment will not increase prosperity and personal income. The legislation to make the 2018 provisions permanent is, alarmingly, not urgent to politicians.

At least one policy could make Canada more attractive to business, investors, and hard-pressed ordinary citizens. It would be to slash corporate income taxes substantially.  Another is to make paying taxes easier, as Magna Corporation founder Frank Stronach suggested. It may surprise some Canadians, but Ottawa’s take from corporate income taxes is a relatively small. However, it is a fast-rising proportion of federal overall revenue: 21 percent in fiscal 2022–23, according to the government, up from 13 percent in fiscal 2000–21, notes the OECD.

Letting companies pay taxes and reducing the tax burden on ordinary people might seem OK to some. However, what happens is that every corporate expense, including taxes, reduces cash flow that reaches individuals. The money remaining in the hands of businesses could either be reinvested or paid out as dividends to owners. Let’s remember that owners are founding families, pension fund beneficiaries (employees, citizens), and ordinary individuals.

As there are fewer available funds, there will be a reduced capacity for capital investment. Investment is required to replace existing equipment, or add new equipment, devices, software, and vehicles for businesses. It only keeps companies competitive and makes employees more productive. This, in turn, makes the whole economy more profitable, thereby increasing taxes paid to governments.

As for the questionable reason for the tax increase, aiming to generate more revenue, recent experience in the United States is informative. The 2017 Tax Cut and Jobs Act reduced corporate income tax from 39 percent of pre-tax income to 21 percent. It resulted in U.S. federal corporate income tax revenue rising 25 percent from 2017 to  2021. Capital investment  rose dramatically too, by 20 percent, a key goal of many Canadian policymakers.

Until recently, the Republic of Ireland had a corporate income tax rate of 12.5 percent, a key selling point in its successful efforts to attract foreign investment over the past several decades. Ireland, with few natural resources, is one of the richest and fastest-growing of the OECD nations, despite a bad real estate crash 15 years ago. Near the lowest in the OECD in tax burden, it nevertheless has a high quality of life and services.

If anything, Canada should cut corporate income taxes to below the levels of its main trading partners and rivals. To do so, it will have to extricate itself from the ill-conceived international treaty that compels signatory nations and territories to have a floor rate of at least 15 percent of pre-tax income.   Ottawa seems enamoured of multinational agreements and organizations, so it may be highly reluctant to abrogate membership in this growth-dampening arrangement. The statutory federal corporate income tax rate in Canada is 15 percent, but all provincial governments impose their own levies on top of that, ranging from 8 percent in Alberta to 16 percent in Prince Edward Island.

By cutting taxes, we can pave the way for a brighter economic future, marked by increased productivity and the prosperity we all yearn for. This move will also ensure our international competitiveness, a goal we are currently struggling to achieve with our current 25 percent rate (OECD).  Canada has a hard time attracting investors. Raising taxes will neither attract more of them nor encourage more investment from existing Canada-domiciled entrepreneurs and companies.

Ian Madsen is senior policy analyst at the Frontier Centre for Public Policy.