Saskatchewan moves to amend Constitution amid civil trial with Canadian Pacific
The basis of a lawsuit between Canadian Pacific Railway Ltd. and the Saskatchewan government moves to the floor of the provincial legislature Monday, before possibly heading to Ottawa in a bid to amend the Constitution.
Canadian Pacific is suing the province for $341 million over a clause that was written in a contract so old John A. Macdonald was prime minister and Saskatchewan wasn't yet a province.
The court battle, which has been going on for 13 years, is currently being argued at trial in Regina's Court of Queen's Bench.
In its statement of claim, CP says it wants a return of taxes paid to Saskatchewan since 2002 and a declaration that future taxes are not payable.
The corporation argues it's exempt from paying certain taxes based primarily on a 1880 contract between Canada and CP's predecessor. In exchange for tax exemptions, CP agreed to build the transcontinental railway.
"In exchange for CP's investments and commitment to build and to operate this railway forever, the prairie provinces and federal government agreed to certain tax exemptions for business conducted on this main line," CP spokesman Patrick Waldron said in an email.
The exemption became part of the Saskatchewan Act in the Constitution, when the province was created 116 years ago.
However, Saskatchewan argues the tax exemption was rescinded on Aug. 29, 1966, in a letter from then CP president Ian D. Sinclair to the former federal minister of transport John Pickersgill in exchange for modernized transportation legislation.
The trial, which began four weeks ago, is scheduled wrap up in mid-December.
In the meantime, the Saskatchewan Party government is working to amend the Constitution.
Last week, Justice Minister Gord Wyant introduced a motion to change the Constitution as it relates to the Saskatchewan Act. On Monday, it's to be debated in the legislature.
"It's kind of cool," said Wyant, who practised as a lawyer before he was first elected in 2010. "You can imagine how exciting it is for a constitutional lawyer to be working on amending the Constitution."
The province wants to have Section 24 of the Saskatchewan Act repealed -- the part which exempts CP from paying the taxes -- and make the change retroactive to Aug. 29, 1966.
"It would be unfair to the residents of Saskatchewan if a major corporation were exempt from certain provincial taxes, casting that tax burden onto the residents of Saskatchewan," the motion reads.
CP declined to comment on the motion.
It's not disputed that CP paid taxes for over a century. The issue to be determined at trial is whether the company was legally obligated to do so and, if not, whether it's entitled to a return of the money paid.
Wyant declined to comment on the lawsuit. But he said "modern taxation and transportation policy kind of demand an equal playing field."
He said he expects the motion to pass unanimously Monday, with support from the Opposition NDP.
However, the amendment must be approved by the federal government.
"Once (our motion) passes, we'll transmit it to the federal government, asking them to present their collateral resolution on the floor of Parliament," Wyant said, adding the province has already given Ottawa a heads-up on the issue.
As for when the last time the Saskatchewan Act in the Constitution was amended?
"It's not certainly within the living memory of anybody in our province," said Wyant. "It's fairly unique."
This report by The Canadian Press was first published Nov. 29, 2021.
CTVNews.ca Top Stories
BREAKING Iran fires at suspected Israeli attack drones near Isfahan air base and nuclear site
Iran fired air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan after spotting drones, which were suspected to be part of an Israeli attack in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
In his new book 'As Long as You Need', hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Trend Line Anger, pessimism towards federal government reach six-year high: Nanos survey
Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.
DEVELOPING Israel targets air defence system in Syria, state news agency says
Israel carried out a missile strike targeting an air defence unit in southern Syria, causing material damage, state-run SANA news agency quoted a military statement as saying Friday.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
NEW From window blinds to motorcycle helmets, here are the recalls in Canada this week
Here are the various items Health Canada recalled this week, including motorcycle helmets, power adapters, and bicycle cranksets.
Opinion 'Sasquatch Sunset' review: There won't be a weirder movie in theatres this year
Rare is the movie that can ride the line between scatological and sublime, absurdist and acute.