A court has granted Saskatchewan an emergency injunction against the Canada Revenue Agency to block the federal government from collecting the carbon tax directly.
The province’s court victory was announced Monday by Attorney General Bronwyn Eyre.
The minister said the province sought an injunction “to stop this unfair and unconstitutional cash grab by the Trudeau government.”
“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 in a Facebook post.
The injunction was filed after the federal Liberal government sent the Canada Revenue Agency after the Saskatchewan government for refusing to collect the carbon tax provincially.
Eyre and Saskatchewan Premier Scott Moe called the move “unfair and unconstitutional.”
Canada’s minister of national revenue, Marie-Claude Bibeau, told True North that with the adoption of Bill 151, Saskatchewan became an assigned distributor, obligated to follow the law as any distributor would under the Greenhouse Gas Pollution Pricing Act, the law setting out a mandatory minimum carbon tax.
She said that the Canada Revenue Agency pursued collections as required by law.
“We stand firm in upholding the law and will continue to deliver the full Canadian Carbon Rebate to the people of Saskatchewan. Our commitment to fairness and equality for all Canadians is unwavering, as we strive to level the playing field and champion environmental responsibility nationwide,” said Bibeau.
After Prime Minister Justin Trudeau suspended the carbon tax on home heating oil in Oct. 2023, primarily benefitting Atlantic Canadians, Eyre and the Saskatchewan government called for “fair and equal treatment.”
Saskatchewan was not alone, with most of the country rallying behind it. Seven out of 10 provincial premiers and the Northwest Territories joined the call for carbon tax relief.
Eyre said that providing relief to other parts of Canada while attempting to garnish Saskatchewan’s bank accounts violates Section 126 of Canada’s constitution.
A spokesperson for the Canada Revenue Agency told True North that the agency does not comment on any specific details of court cases.
“The courts provide Canadians with a further independent review of disputed issues, and court decisions serve to clarify the law or resolve disputes between the Canada Revenue Agency and taxpayers,” said the spokesperson.
The injunction will block the Canada Revenue Agency from any action until the Tax Court of Canada can review the case, followed by the Supreme Court, should it reach that stage.