July 19, 2024
The emergency injunction granted Monday will block any attempts by federal agencies to claw back the money until further decisions are made by the presiding judge.

Sask. says it has court order to stop CRA from collecting carbon tax charges

In court documents, the Government of Saskatchewan calls the collection of federal carbon fees ‘invalid or unlawful,’ per constitutional arguments made by the province

Saskatchewan says the Federal Court has granted an injunction order to stop any collection action against the province on outstanding carbon tax levies while a decision on a longer-standing injunction is pending.

In a statement issued Monday, Attorney General Bronwyn Eyre said the emergency court order was sought on Friday — a day after Saskatchewan filed a challenge against the amount owed in federal court “due to the continued threat of garnishment of our bank account” by Canada Revenue Agency (CRA).

“The court ruled in our favour, blocking the federal government from unconstitutionally garnishing money, pending the full hearing and determination of the continuation of the injunction by the Federal Court,” said Eyre.

The CRA is attempting to collect a portion of the outstanding fuel charges on natural gas that Saskatchewan has not paid since January, as assessed by the Minister of National Revenue under the Greenhouse Gas Pollution Pricing Act (GGPPA).

The province, meanwhile, is seeking a judicial review to toss out CRA’s requirement-to-pay notice, plus a request for a stay order by way of the aforementioned injunction on any collection by the federal agency while the case is pending.

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