Legal experts say the federal government has taken an unusual step in trying to take 28-million dollars from Saskatchewan’s bank account for not paying carbon levy money.
Rory Gillis, a professor of tax law and federalism at Western University, calls the move drastic, saying it shows a poor relationship between Ottawa and Saskatchewan.
Eric Adams, a professor at the University of Alberta expert in constitutional law, also says the move highlights a level of dysfunction.
Their comments come as the case is to be heard tomorrow in Vancouver Federal Court.
Last week, Saskatchewan won a temporary stay to stop the Canada Revenue Agency from taking money it says the province owes.
That debt comes from Saskatchewan’s refusal to pay carbon levy money to Ottawa after Prime Minister Justin Trudeau exempted home-heating oil users from paying.
Court documents say the province owes more than 56-million dollars as of April.
Saskatchewan is breaking federal emissions law by not paying the money.