Experts Find Unusual Canada Revenue Agency Order to Seize Money in Saskatchewan
Legal experts suggest that the federal government’s move to seize $28 million from Saskatchewan’s bank account over unpaid carbon levies is an unprecedented step, with a court date set for July 11 to argue the case.
Rory Gillis, a tax law and federalism specialist at Western University, remarked that this action is novel, especially in the context of government debt collection.
Eric Adams, a constitutional law professor at the University of Alberta, also noted the unusual nature of this move, highlighting underlying governmental dysfunction.
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Saskatchewan’s Justice Minister sought an injunction to halt the Canada Revenue Agency’s actions, following the province’s refusal to pay carbon levies due to exemptions granted by Prime Minister Justin Trudeau.
The dispute centers on Saskatchewan’s defiance of federal emissions regulations, leading to potential penalties for non-compliance.
Court documents reveal a growing debt owed by Saskatchewan, with attempts by the revenue agency to collect outstanding amounts.
Saskatchewan argues against the levy and challenges Ottawa’s jurisdiction to seize provincial funds, citing political motivations behind the exemption.
Experts anticipate a lengthy legal battle over the constitutionality of carbon pricing and its implications for Saskatchewan residents.
Regardless of the outcome, the province faces decisions on addressing financial obligations if defeated.
