Moe announces Canada Revenue Agency to conduct audit of Saskatchewan for failure to pay carbon levies

The Canada Revenue Agency is planning to audit Saskatchewan for failing to pay carbon levies on home heating, as stated by Premier Scott Moe on Monday.

Premier Moe mentioned that the agency has expressed interest in reviewing Saskatchewan’s financial records to determine the amount owed in levies that were not remitted to Ottawa.

“They will inquire about examining the submissions we’ve made and request us to submit any estimated outstanding payments,” he informed reporters.

“We do not believe that any unpaid amounts exist.”

Earlier this year, the Saskatchewan Party government decided not to remit the federal carbon price on natural gas, which is a violation of federal law.

Premier Moe implemented this action after Prime Minister Justin Trudeau exempted users of home heating oil from the levy, a move perceived as politically motivated to garner support in Atlantic Canada.

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The Canada Revenue Agency has not yet responded to a request for comment.

Last week, Prime Minister Trudeau stated that the agency is proficient at recovering owed funds and wished Premier Moe luck in his dealings with the agency.

Premier Moe argued that it is unjust for other forms of heating to not receive exemptions.

“We believe that the federal government could further enhance the fairness of this policy decision for more Canadian families,” he remarked.

Premier Moe suggested that the agency may encounter difficulties in collecting the funds, as legislative changes from Ottawa may be necessary.

He referenced a section in the federal budget proposing amendments to the Greenhouse Gas Pollution Act, enabling federal officials to share information on provinces failing to pay carbon levies.

Information would be shared “for the purposes of evaluating potential action,” as outlined.

Prime Minister Trudeau defended his choice to exempt home-heating oil users, citing its higher cost compared to natural gas, and ruled out exemptions for other users.

According to Prime Minister Trudeau, most Canadians receive more in rebates than what they pay.

He also assured that Saskatchewan residents will still receive rebates, despite the province’s non-compliance.

Premier Moe stated that Saskatchewan residents have the freedom to use their carbon rebates as they see fit.