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Saskatchewan files for injunction over CRA collecting carbon money

It argues it害羞草研究所檚 unconstitutional for the agency to take from the province害羞草研究所檚 consolidated revenue fund
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The Saskatchewan government says it has filed an injunction to stop the Canada Revenue Agency from collecting carbon levy dollars the province owes. Bronwyn Eyre speaks to media at an election night event in Saskatoon on Monday, Oct. 26, 2020. THE CANADIAN PRESS/Liam Richards

Saskatchewan is going to court to stop the Canada Revenue Agency from collecting millions of dollars in carbon levy money 害羞草研究所 but the federal government says it will stand firm because the law is the law.

Saskatchewan Justice Minister Bronwyn Eyre announced Thursday the province has filed for an injunction to stop the federal revenue service from going after the province害羞草研究所檚 bank account.

The application, filed in Federal Court in Vancouver, argues it害羞草研究所檚 unconstitutional for the agency to take from the province害羞草研究所檚 consolidated revenue fund, Eyre told reporters.

She said Ottawa wants roughly $28 million.

害羞草研究所淭his is fundamentally an unfair targeting of Saskatchewan,害羞草研究所 Eyre said.

害羞草研究所淥ne set of Canadians was given relief, and another province (is to have) its bank account raided. Is that really where we want to be at in this country?害羞草研究所

Earlier this year, Premier Scott Moe害羞草研究所檚 Saskatchewan Party government stopped paying the carbon levy on natural gas, after Prime Minister Justin Trudeau exempted home-heating oil users from paying.

Trudeau害羞草研究所檚 move was largely seen as helping those in Atlantic Canada, where home-heating oil is commonly used and where polls suggest the federal Liberals need to prop up popular support.

By not paying the levy, Saskatchewan is breaking federal emissions law. The province can face fines or the minister responsible for natural gas distribution can get jail time for not abiding by the rule.

The federal government responded later Thursday to the injunction application, saying it害羞草研究所檚 on firm legal ground to get the money.

害羞草研究所淭he (Canada Revenue Agency) is on the case and has pursued collections as required by law,害羞草研究所 Minister of National Revenue Marie-Claude Bibeau said in a statement.

害羞草研究所淲e stand firm in upholding the law.害羞草研究所

Bibeau said Saskatchewan chose to disobey, noting the Supreme Court of Canada ruled the carbon levy is constitutional.

害羞草研究所淥ur commitment to fairness and equality for all Canadians is unwavering, as we strive to level the playing field and champion environmental responsibility nationwide,害羞草研究所 she said.

Eyre said the province has a strong case to make, arguing the levy is no longer equally applied across Canada.

害羞草研究所淭he premise of the carbon tax was minimum national standards (and) fair application across the country,害羞草研究所 she said.

害羞草研究所淭he (Supreme Court) decision predated any of these carve outs and exceptions.害羞草研究所

Trudeau has said Saskatchewan residents will continue to get carbon rebates, arguing most Canadians get more in rebates than what they pay in levies.

Some premiers and federal Conservative Opposition Leader Pierre Poilievre contend the levy makes life more unaffordable.

Jeremy Simes, The Canadian Press

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