Amax Potash Ltd. Etc. v. The Government of Saskatchewan

Amax Potash Ltd. Etc. v. The Government of Saskatchewan

Section 5(7) of The Proceedings against the Crown Act is ultra vires insofar as it purports to bar recovery of taxes paid under a statute or statutory provision beyond provincial legislative jurisdiction; however, the interlocutory application for preservation of monies paid under protest was denied as Rules 387 and 390 do not extend to compelled tax payments and the court declined to order a novel stakeholder regime on interlocutory materials.

Citation
[1977] 2 SCR 576
Parties
Plaintiffs/appellants: Amax Potash Ltd. et al.; Defendant/respondent: The Government of Saskatchewan; Intervenor: Attorney General of Canada; Intervenor: Attorney General of Alberta
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 October 1976
Procedural Posture
Constitutional Challenge to Provincial Taxation; Civil Action for Declaration and Recovery of Taxes / Interlocutory Appeal to Supreme Court of Canada From Court of Appeal for Saskatchewan Concerning Interim Preservation Order and Constitutionality of Provincial Crown‑liability Provision
Outcome
Appeal allowed in part: constitutional question answered in favor of appellants; interlocutory preservation motion denied.
Legal Topics
Crown Liability, Ultra Vires, Tax Recovery, Interim Preservation of Assets, Division of Powers
Source Language
English
Constitutional Law Tax Law Civil Procedure Administrative Law Crown Liability Ultra Vires Tax Recovery Interim Preservation of Assets +1 more

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Parties

Amax Potash Ltd. et al.

Plaintiffs/appellants

The Government of Saskatchewan

Defendant/respondent

Attorney General of Canada

Intervenor

Attorney General of Alberta

Intervenor

Procedural Posture

Constitutional Challenge to Provincial Taxation; Civil Action for Declaration and Recovery of Taxes / Interlocutory Appeal to Supreme Court of Canada From Court of Appeal for Saskatchewan Concerning Interim Preservation Order and Constitutionality of Provincial Crown‑liability Provision

Legal Issues

  1. 1 Whether s.5(7) of The Proceedings against the Crown Act, R.S.S. 1965, c.87, is intra vires insofar as it bars recovery of taxes paid under an ultra vires provincial statute
  2. 2 Whether taxes paid under protest to a province pursuant to impugned tax legislation can be recovered if the legislation is subsequently declared ultra vires
  3. 3 Whether the Court should grant an interlocutory order to preserve monies paid under protest and the applicability of Queen's Bench Rules 387 and 390 to such monies

Ratio Decidendi

Section 5(7) of The Proceedings against the Crown Act is ultra vires insofar as it purports to bar recovery of taxes paid under a statute or statutory provision beyond provincial legislative jurisdiction; however, the interlocutory application for preservation of monies paid under protest was denied as Rules 387 and 390 do not extend to compelled tax payments and the court declined to order a novel stakeholder regime on interlocutory materials.

Court Disposition

Appeal allowed in part: constitutional question answered in favor of appellants; interlocutory preservation motion denied.

Orders

  • Section 5(7) of The Proceedings against the Crown Act, R.S.S. 1965, c.87 declared ultra vires insofar as it purports to bar recovery of taxes paid under a statute beyond provincial legislative jurisdiction.
  • Motion for interim preservation of monies paid under the impugned potash reserve tax legislation denied.