A 140-year-old agreement between the federal government and the Canadian Pacific Railway for tax exemptions in Saskatchewan has come to an end.
The Canadian Senate voted this week to amend the Canadian constitution to remove section 24 of the Saskatchewan Act which agrees that CP Rail would be exempt from certain taxes in Saskatchewan in exchange for building a cross-country railway system. The deal was struck back in 1880.
The Province of Saskatchewan is currently embroiled in a lawsuit with CP Railway. The railway company is claiming the province owes them $341 million for taxes paid since 2002, citing the Saskatchewan Act tax exemption.