The Canada Revenue Agency (CRA) is going to audit Saskatchewan for not paying carbon levies on home heating, Premier Scott Moe said Monday.

Moe said the agency has indicated it will look at Saskatchewan’s books to see how much the province owes in levies that weren’t paid to Ottawa.

“They will ask if they can look at the submissions we’ve made and for us to submit money they estimate may be owed,” he told reporters.

“We don’t believe there’s any dollars that are owed.”

The Saskatchewan Party government decided earlier this year to not remit the federal carbon price on natural gas, a move that breaks federal law.

Moe invoked the measure after Prime Minister Justin Trudeau exempted users of home heating oil from having to pay the levy in a move largely seen as politically motivated to boost Liberal support in Atlantic Canada.

The Canada Revenue Agency did not immediately respond to a request for comment.

Trudeau said last week the agency is “very, very good” at getting money owed and wished Moe “good luck” in dealing with the agency.

Moe said it’s unfair for other forms of heating not to be exempt.

“We think the federal government could actually take another step and make this whole policy decision more fair to more Canadian families,” he said.

Moe said the agency could face problems collecting the money, as Ottawa may have to change legislation to get it.

He pointed to a section of the federal budget that says Ottawa is proposing changes to the Greenhouse Gas Pollution Act. The changes would allow federal officials to share information with one another about provinces that aren’t paying carbon levies.

Information would be shared “for the purposes of evaluating potential action,” it says.

Trudeau has defended his decision to exempt home-heating oil users, saying it’s more expensive than natural gas. He has ruled out offering exemptions to other users.

Most Canadians get more in rebates than what they pay, Trudeau has said.

He has also said Saskatchewan residents will continue to get rebates, even though the province isn’t paying.

Moe said Saskatchewan residents can do whatever they want with their carbon rebates.

— This report by The Canadian Press was first published April 29, 2024.