Canadian Pacific will pay taxes in Saskatchewan

The Constitution is to be amended as it relates to the Saskatchewan Act so as to remove a section that exempts Canadian Pacific Railway from paying taxes in the province.

The proposed amendment – which earlier received unanimous support from the Saskatchewan legislature and the House of Commons in Ottawa – has now been approved by the Senate.

Saskatchewan Justice Minister Gord Wyant says he’s pleased the federal government supported the province’s motion in a timely fashion.

Wyant says the Governor General has to sign off on the change.

In November, the province sought to have Section 24 of the Saskatchewan Act repealed – the part which exempted CP from paying taxes.

Canadian Pacific is suing the province for $341 million for a return of taxes already paid.

A CP spokesperson says in a statement that the rail company fulfilled its obligations under the clause.