Sask. files injunction to block feds from reclaiming missed carbon tax payments

“This is about fairness and the fair application of the law,” said Saskatchewan Attorney General Bronwyn Eyre.

Attorney General Bronwyn Eyre said the Government of Saskatchewan has applied for an injunction to block the Canada Revenue Agency (CRA) from accessing the province’s accounts to reclaim missed carbon tax payments.

CRA had confirmed plans to audit the province this spring over Saskatchewan’s stubborn refusal to remit carbon levies owed to the federal Crown under the Greenhouse Gas Pollution Pricing Act.

Eyre said CRA is targeting the province’s bank account, calling it a “cash grab” by the Liberals in response to “when someone disagrees with them.”

“The reason they’re doing this is because we are providing Saskatchewan residents with the exact same carbon tax exemption (Prime Minister Justin) Trudeau is giving other Canadians,” said Eyre in a video posted to social media Thursday.

“Other parts of Canada get tax relief. We get our bank account garnished for providing that same tax relief. It’s unfair and its unconstitutional.”

Eyre cited Section 126 of the Canadian constitution, which states that consolidated revenues collected by provinces are a provincial asset meant to be used to provide public service.

“This is about fairness and the fair application of the law,” Eyre said.

Premier Scott Moe has been vocally critical of the move, calling it a “carve-out” for Atlantic Canadians who use heating oil most and unfair to other Canadians struggling with inflated cost-of-living pressures.

“We are submitting the same amount of carbon tax on natural gas and electricity for residential home heating as the Trudeau government is collecting on home heating oil,” Moe said in a social media post.

“We don’t believe there are any dollars owed,” he added later, speaking to media.

Trudeau said earlier this year Saskatchewan residents will still receive a Canada Carbon Rebate, “despite the fact that Premier Moe is not sending that money to Ottawa right now.”

The Leader-Post has requested a response from CRA and expects further comments from Eyre this afternoon.

— With files from Alec Salloum

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