Regina Saskatchewan - Saskatchewan's Taxpayers' Fairness (CPR) Act came into force Friday to help
end what the provincial government calls an unfair tax exemption.
The act was passed unanimously during the Legislature's spring session, and applies retroactively from
29 Aug 1966.
The goal is to bring Canadian Pacific Railway (CP) in line with other companies when it comes to provincial tax
rules.
CP is currently suing Saskatchewan, aiming to get back $341 million in taxes paid by citing a clause which first
appeared in an 1880 contract between Canada and the railway company's predecessor.
Today's Canadian Pacific Limited was incorporated in 1881 so
we're talking about the same company, not a predecessor.
The contentious legal battle has been going on for some time.
The act states that "any taxes imposed on, collected from, or paid by, the CP Company are conclusively deemed to
have been validly imposed, collected, or paid, for all purposes."
In a statement, Justice Minister Bronwyn Eyre said the act will help level the playing field for all companies that do
business in Saskatchewan.
"We always want to ensure that the people of Saskatchewan receive their fair share from companies doing business
in our province," Eyre said.
"The argument that any company is exempt from taxation is unfair to taxpayers and other businesses that operate
here."
In addition to the lawsuit against the Saskatchewan government, CP has also sued the federal government and the
provincial governments of Alberta and Manitoba.
The lawsuit against Canada was dismissed by a federal court in September, the province noted, and the lawsuits against
Alberta and Manitoba have not yet proceeded to trial.
The Taxpayers' Fairness (CPR) Act is the third piece of legislation passed recently to try to address the exemption,
following a constitutional amendment to the Saskatchewan Act passed by the Legislative Assembly as well as the House of
Commons and Senate, and provisions in the federal Budget Implementation Act, passed in Ottawa last
month.
Author unknown.
Thank you very much Saskatchewan, Manitoba, and Alberta. You
would not exist today were it not for the Canadian Pacific Railway which was granted that tax exemption to enable it to
connect Canada thereby creating your three provinces.
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(usually because it's been seen before)
provisions in Section 29 of the
Canadian Copyright Modernization Act.
