Sask. carbon tax injunction hearing cancelled

The hearing over the Government of Saskatchewan’s injunction against the Canada Revenue Agency (CRA) that was expected to begin on Friday morning has been cancelled.

Shortly before the start time of 11 a.m. a notice went out about the cancellation.

An update on the federal court website later said the two parties were “negotiating terms which would resolve the current dispute.”

If they don’t come to a solution by Monday, the update said they were trying to get back into court for another hearing that week.

This is over the interim injunction that was granted on Monday.

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The provincial government is trying to stop the CRA from taking or garnishing money from the General Revenue Fund for what it believes is owing for the carbon tax.

This stems from the provincial government instructing SaskEnergy to stop collecting and remitting the carbon tax on home heating to the federal government in January. SaskPower also stopped collecting the tax on home heating, but the company is still paying the amount to the province’s carbon tax structure.

Premier Scott Moe said he decided to make the move after the federal government announced it was giving an exemption in the carbon tax to home heating oil, which is primarily used in Eastern Canada. Moe said he was making things fair for Saskatchewan.

At first, there was a question of whether people in Saskatchewan would still get the full carbon tax rebate, but the CRA later confirmed residents would be getting the full cheque.

Then, federal ministers said the CRA would be looking into the situation.

On July 5, Saskatchewan justice minister Bronwyn Eyre announced the CRA was trying to garnish the province’s bank account, and it was taking it to court.