OTTAWA — The government of Saskatchewan’s effort to remove a tax break for Canadian Pacific from the law that created the province has advanced at the federal level, with the amendment to the Constitution of Canada passing the House of Commons.
CTV News reports the legislation now moves to Senate, where it could be proclaimed to be in force by the Governor General and become law.
The effort to amend the Saskatchewan Act stems from a CP lawsuit seeking the refund of $341 million in back taxes, saying it is exempt under an 1880 agreement. The province has contended that exemption was rescinded as part of legislation in 1966 [see “Province seeks to amend constitution …,” Trains News Wire, Dec. 1, 2021].
The amendment, repealing Section 24 of the Saskatchewan Act, would be retroactive to 1966. Gordon Wyant, the province’s justice minister and attorney general, said in a press release the amendment will “ensure that all Saskatchewan taxpayers, both citizens and businesses alike, continue to be fairly treated and bear responsibility for provincial taxes which support our provincial infrastructure and economy.”
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