CP Rail and the Saskatchewan government are fighting one another in court with the railway saying it shouldn’t be paying provincial taxes because of an agreement made in 1881.
The CPR Act stated CP Rail and its stations, buildings, yards, workshops and other things as well as the company’s capital stock shall be forever free from taxation by the federal government, provinces and municipalities.
As a result, they are looking for 341 million dollars.
The province says CP gave up the exemption decades ago.
While CP did agree to voluntarily forgo the exemption from municipal taxation, the company claims it did not do that for provincial taxes.
The case, which started Monday in Regina Court of Queen’s Bench, is expected to take weeks.
