The provincial government has revealed that the emergency injunction they issued last week against the Canada Revenue Agency was successful, and the CRA’s garnishment of Saskatchewan’s bank account has been put on pause, pending a further hearing.
The news release explained that today’s hearing on the injunction was cancelled so that lawyers for both groups could “avoid the need for a further injunction hearing.”
What the provincial news release didn’t mention are the negotiations currently going on between the two parties that aim to resolve the current dispute.
The conflict began when heating oil was temporarily given a reprieve from the carbon tax by the federal government, which primarily benefited the Maritime provinces. Premier Scott Moe said it was unfair that natural gas was not included as well, so Saskatchewan stopped remitting the carbon levy on natural gas to Ottawa.
Court documents say Saskatchewan’s bill has grown to $56 million between January and April.
In a letter, the Federal Court in Vancouver says if there’s no settlement, the hearing could be rescheduled for next week.
Ottawa has said it’s firm in its position of getting the money back from Saskatchewan, accusing the province of breaking the federal emissions law by not paying up.