close
close

Federal Court rules in favor of Sask. District Court’s request for emergency relief

Federal Court rules in favor of Sask. District Court’s request for emergency relief
Federal Court rules in favor of Sask. District Court’s request for emergency relief

According to the province, an injunction prohibiting the Canadian Revenue Agency (CRA) from seizing Saskatchewan’s bank account has been successful.

In a statement to CTV News on Monday, Saskatchewan Attorney General Bronwyn Eyre revealed that a federal court had ruled in favor of Saskatchewan’s emergency injunction process. The motion was filed after the federal tax agency sought to collect money owed since the province refused to collect and remit a carbon tax on residential heating.

“The court ruled in our favor and restrained the federal government from unconstitutionally seizing funds pending a full hearing and decision on whether to continue the injunction in federal court,” Eyre said.

The latest move in this long-running affair was for the federal government to threaten to have the CRA audit the province to recover the lost funds.

On July 4, Eyre announced that the province would file an injunction to block the agency.

In her speech, she referred to Article 126 of the Constitution, which does not allow the federal government to withdraw money from a province’s bank account.

In October 2023, the provincial government announced that it would discontinue the CO2 tax on natural gas for residential heating and extend it to electric heating in December.

The exemptions were in response to a three-year exemption from carbon taxes on heating oil, which was used primarily in Atlantic Canada.

The Saskatchewan government believes that the CRA does not have the authority to seize money from a provincial bank account.

A successful injunction blocks all of the CRA’s actions until the case is heard by the Tax Court of Canada and ultimately by the Supreme Court, if they wish to hear the case.


—With files from Caitlin Brezinski and Wayne Mantyka.