Nova Scotia is now at loggerheads with the federal government after the former contests the supposed CAD53.4 million (US$40 million) it owed in connection with First Nations video lottery terminal revenue.

CBC News reported that Nova Scotia filed an appeal before a Canadian tax court challenging the move of the Canadian Revenue Agency (CRA) to levy harmonized sales tax assessment on video-lottery revenues from First Nations in the province.

The appeal is also intended to recover a total of CAD53.4 million it reluctantly paid should Nova Scotia wins the case against the CRA.

Records showed that the province made the initial payment of CAD29.6 million (US$23.68 million) in 2013 and another CAD23.8 million (US$19.04 million) in monthly remittances pending the outcome of its tax court appeal