The Canada Revenue Agency (CRA) issued a demand for Saskatchewan to pay $42.4 million in carbon taxes within 14 days, or face potential legal action, as revealed by Federal Court records. Blacklock's Reporter says Saskatchewan Attorney General Bronwyn Eyre condemned the order as an overtly political threat.“By letter dated May 29 an official of the Canada Revenue Agency on behalf of the Minister of Revenue alleged the Province owed a fuel charge debt under the Greenhouse Gas Pollution Pricing Act totaling $42.4 million and that if the full amount was not paid within 14 days the Canada Revenue Agency may take legal action,” Attorney General Eyre’s lawyers wrote the Court.On June 25, the CRA escalated the situation by issuing a Requirement To Pay notice to the Royal Bank of Canada, which holds accounts for the Province. The Agency now claims Saskatchewan owes a total of $55,592,632 in carbon taxes plus $237,140 in interest.“They started with the threats,” Eyre stated. She accused the federal cabinet of using their power to intimidate. “They are sending the Canada Revenue Agency after the Province’s bank accounts. That is what they are doing.”Saskatchewan is seeking a court order to halt any confiscation of provincial accounts until a full hearing on the constitutionality of the CRA's demand can take place. Court officers indicated that the motion would not be heard at a general court sitting Tuesday, suggesting instead that “a special sitting is more appropriate.”This dispute follows Saskatchewan’s decision on February 29 to initiate a carbon tax strike through SaskEnergy, the province’s Crown-owned distributor of natural gas for home heating. The strike was a response to the federal cabinet’s decision on October 1 to cancel $1 billion in annual carbon tax collections on home heating oil, a move mainly benefiting Atlantic Canada, where 24 Liberal MPs face re-election.“We took action to ensure Saskatchewan people were treated fairly by removing the carbon tax on natural gas and electricity used for home heating here in Saskatchewan,” Eyre explained. “How did the Trudeau government respond? One Trudeau Minister called it immoral. Another Trudeau Minister said if we wanted a carbon tax exemption we should have elected more Liberals.”Liberal MP Gudie Hutchings (Long Range Mountains, Nfld. & Labrador), Minister of Rural Economic Development, reinforced this sentiment in an interview on October 29 with CTV's Question Period, saying, “Perhaps they need to elect more Liberals in the Prairies.”Energy Minister Jonathan Wilkinson on February 29 warned of potential anarchy if Saskatchewan's tax strike proceeded. “Premiers like prime ministers are responsible for passing laws and they expect their citizens to abide by those laws,” said Wilkinson. “If you do not have that expectation, you have anarchy.”The carbon tax saw a 23% increase on April 1, raising rates to 12¢ per litre of propane, 15¢ per cubic metre of natural gas, 18¢ per litre of gasoline, 20¢ per litre of aviation fuel, and 25¢ per litre of heating oil. Another 23% increase is scheduled for April 1 of the next year.
