Yellowhead Road and Bridge has filed a lawsuit seeking roughly $250,000 from the federal government for an alleged failure to compensate the company for the costs incurred when the provincial government abandoned the harmonized sales tax.
The dispute involves a contract YRB took over from an Alberta-based company, Laprairie Works Inc., to service a 456-kilometre stretch of the Alaska Highway.
When first reached in August 2010, the contract was between Laprairie and the federal government but in May 2013, YRB took it over from Laprairie and 10 days later, the provincial government reverted back to the provincial sales tax and the federal goods and services tax.
According to a notice of claim filed Friday at the Prince George courthouse, the federal government is required under the contract YRB took over to compensate YRB for any additional costs incurred as a result of a change in taxation and has refused to do so.
The claim includes a list of PST related costs dating from May 2013 to April 2015 adding up to $253,217.57.
A response to the notice of claim has not yet been filed.
