From The Montreal Gazette on :
To Fight Wage Tax
Federal Employees in Manitoba Refuse to Pay
Winnipeg, .
— More then 600 federal civil servants employed in Manitoba will protest the right of the Manitoba Government to collect a two per cent. wage tax it was announced today, following a mass meeting of representatives of all federal employees in the province.
Facing court action for failing to pay their wage tax to the Manitoba Government the civil servants decided to retain legal counsel to test the validity of the imposition in the court.
The main defence it is understood is to be the ground of “ultra vires.”
The test case went all the way to the Supreme Court, which ruled on that the soldiers and other federal workers were indeed liable for the Manitoba tax.