Saskatchewan, federal government negotiating resolution to carbon tax collection court challenge [Video]

Saskatchewan’s case to stop Ottawa from collecting $28 million in levy money will be heard in Federal Court on Friday. Last week, the province filed a lawsuit in Federal Court to try to stop the Canada Revenue Agency from garnishing the millions that the CRA says Saskatchewan owes for failing to collect and remit part of the carbon tax.

Saskatchewan and the government of Canada are negotiating a potential resolution to their dispute over the federal carbon tax.

A federal court in Vancouver was scheduled to hear the arguments on an injunction being sought by Saskatchewan on Friday morning, but the hearing was abruptly cancelled just moments before it was scheduled to begin.

An update on the court record indicates the two sides are “currently negotiating terms which could resolve the current dispute.”

A statement issued by the government of Saskatchewan failed to mention the ongoing negotiations, only saying that …