Monday morning in Vancouver lawyers for the Government of Saskatchewan and lawyers for the Federal Government were going to argue in Federal Court over an attempt by the Canada Revenue Agency to recover millions of dollars in carbon tax money.
Now the case has been adjourned, and neither side is saying why, at least clearly.
Saskatchewan was granted an injunction by the Federal Court, when CRA tried to take 28 million dollars from the provincial bank accounts. That is roughly half of the carbon tax money Ottawa believes Saskatchewan owes. Saskatchewan removed the federally mandated carbon tax from home heating when the federal government gave a break on the carbon tax to people in Atlantic Canada who rely on oil to heat their homes. Saskatchewan argued that was unfair, and the tax break should have been offered to all Canadians. The federal Liberal government argued oil is far more expensive than natural gas, and people in Atlantic Canada were paying more in tax than anyone else.
A statement from the provincial government makes clear the money is still in Saskatchewan’s hands, and they believe any attempt by the Canada Revenue Agency to take it is unconstitutional. As the two sides agreed not go ahead with the hearing Monday, the statement goes on to say the provincial government will not be commenting.
The Sask Party Government has been vehemently against the carbon tax, and even fought its legality in the Supreme Court of Canada. The Supreme Court ruled the carbon tax is constitutional.