By Canadian Press

Ottawa says deal reached with Saskatchewan on carbon levy money owed

Jul 16, 2024 | 11:23 AM

REGINA — The federal government says it has reached an agreement with Saskatchewan over the province not paying carbon levy money to Ottawa, though the case may still end up in court.

National Revenue Minister Marie-Claude Bibeau says the deal secures 50 per cent of outstanding amounts Saskatchewan owes until the dispute is resolved.

She says the agreement complies with the law and standard practices.

Saskatchewan Justice Minister Bronwyn Eyre says the province has offered to establish a letter of credit, a document that guarantees payment if conditions are met.

She says the dispute could yet go to the Tax Court of Canada.

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Saskatchewan had filed for an injunction in Federal Court in Vancouver to stop the Canada Revenue Agency from collecting $28 million through a bank order, about half of the $56 million it says the province owes.

This report by The Canadian Press was first published July 16, 2024.

The Canadian Press