Saskatchewan Premier Scott Moe is claiming victory in his province’s fight against the Canada Revenue Agency (CRA) over its refusal to remit carbon taxes. Last week the Saskatchewan government received a federal court injunction preventing the CRA from garnishing its consolidated revenue fund in contravention of Section 126 of Canada’s constitution.Saskatchewan had argued the Liberal’s exemption of home heating oil in the Atlantic provinces from the federal carbon tax was unfair and unconstitutional. In response, he ordered Crown corporation SaskEnergy to stop collecting the home heating portion of consumers’ bills.The matter will now go to a full hearing.But not before Moe crowed that the ruling is the first step in the full repeal of the carbon tax.“We stopped them. The Government of Saskatchewan has been successful in preventing the federal government from its unconstitutional attempt to grab money out of Saskatchewan’s banks account,” he said in a statement on Tuesday.“The province’s bank account and general revenue fund are safe and sound, all monies remain there thanks to the court’s early intervention.”.As part of a deal with the federal government announced Tuesday, Saskatchewan will put up a $28 million letter of credit while the matter is taken up by the Tax Court of Canada.According to a federal assessment earlier this month, the province owes CRA $42.4 million in unpaid taxes."Saskatchewan has offered to establish a letter of credit, which is common practice for companies and other large entities and explicitly provided for under the federal carbon tax legislation," Justice Minister Bronwyn Eyre."It will remain in place until our dispute is determined by the Tax Court of Canada." Meanwhile, the carbon tax exemption "will remain in place until this federal government, or the next one, does the right thing and gets rid of the carbon tax on everyone and everything.".The celebrations could be fleeting, however. The CRA has a well-earned repute on for being the country’s meanest collection agency.For his part, Prime Minister Justin Trudeau said last week the CRA is “very, very good” at collecting outstanding debt and wished Moe “good luck” in his future dealings with the agency.
Saskatchewan Premier Scott Moe is claiming victory in his province’s fight against the Canada Revenue Agency (CRA) over its refusal to remit carbon taxes. Last week the Saskatchewan government received a federal court injunction preventing the CRA from garnishing its consolidated revenue fund in contravention of Section 126 of Canada’s constitution.Saskatchewan had argued the Liberal’s exemption of home heating oil in the Atlantic provinces from the federal carbon tax was unfair and unconstitutional. In response, he ordered Crown corporation SaskEnergy to stop collecting the home heating portion of consumers’ bills.The matter will now go to a full hearing.But not before Moe crowed that the ruling is the first step in the full repeal of the carbon tax.“We stopped them. The Government of Saskatchewan has been successful in preventing the federal government from its unconstitutional attempt to grab money out of Saskatchewan’s banks account,” he said in a statement on Tuesday.“The province’s bank account and general revenue fund are safe and sound, all monies remain there thanks to the court’s early intervention.”.As part of a deal with the federal government announced Tuesday, Saskatchewan will put up a $28 million letter of credit while the matter is taken up by the Tax Court of Canada.According to a federal assessment earlier this month, the province owes CRA $42.4 million in unpaid taxes."Saskatchewan has offered to establish a letter of credit, which is common practice for companies and other large entities and explicitly provided for under the federal carbon tax legislation," Justice Minister Bronwyn Eyre."It will remain in place until our dispute is determined by the Tax Court of Canada." Meanwhile, the carbon tax exemption "will remain in place until this federal government, or the next one, does the right thing and gets rid of the carbon tax on everyone and everything.".The celebrations could be fleeting, however. The CRA has a well-earned repute on for being the country’s meanest collection agency.For his part, Prime Minister Justin Trudeau said last week the CRA is “very, very good” at collecting outstanding debt and wished Moe “good luck” in his future dealings with the agency.
