Canada Revenue Agency order to seize Saskatchewan carbon levy money unusual, experts say
CTV
Legal experts say the federal government has taken an extraordinary step in trying to take $28 million from Saskatchewan's bank account for not paying carbon levy money, a case that is to be argued in court Friday.
Legal experts say the federal government has taken an extraordinary step in trying to take $28 million from Saskatchewan's bank account for not paying carbon levy money, a case that is to be argued in court Friday.
Rory Gillis, an assistant professor at Western University specializing in tax law and federalism, said it's the first time he's ever seen Ottawa try to force the collection of funds from a province.
"It's quite drastic, even in the context of individuals where one is a debtor and one is a creditor," Gillis said this week.
"I would gather that this is a sign that the relationship between the federal government and the Saskatchewan government is very poor."
Eric Adams, a professor at the University of Alberta with expertise in constitutional law, also said the move is unusual.
"It suggests a certain level (of) dysfunction between the two levels of government."
Last week, Saskatchewan Justice Minister Bronwyn Eyre filed for an injunction to stop the Canada Revenue Agency from garnisheeing money the agency says the province owes. A judge granted a temporary stay to prevent the seizure until arguments can be heard in Federal Court in Vancouver.
