Sask. faces criticism over creation of Crown corporation to collect corporate income taxes

Businesses and farmers will now have two tax collectors to deal with, the Canada Revenue Agency (CRA) and a new Saskatchewan Revenue Agency.

The Saskatchewan government is facing criticism over creation of a new Crown corporation to collect corporate income taxes. There will be a cost to the province and businesses will have to file annual tax returns twice.

Legislation to create the provincial Crown corporation passed this week. The Canadian Taxpayers Federation (CTF) is monitoring the development.

“If this program reduces cost for taxpayers, then that’s a great thing but overall, taxpayers need to see the bill and make sure that the budget isn’t going to be blown up by creating an entire new bureaucracy here,” said Gage Haubrich, prairie director of the CTF.

Ottawa currently collects income taxes and gives provinces their share.

“I think it’s a pretty significant change that we are suggesting and I think that consultation is very important. If there is absolutely no reason to pursue it, then we won’t go through the cost of even doing the deeper dive,” said Donna Harpauer, minister of finance.

The NDP estimate it will cost the province $10 million annually to do what the federal government has done on Saskatchewan’s behalf for free.

“That’s not how you do things. It’s reckless. It’s how you get yourself into a really bad spot. The idea itself has been widely panned by the business community and by the people of Saskatchewan,” said NDP MLA Trent Wotherspoon.

The new legislation also gives Saskatchewan power to collect personal income taxes separately although the province says it has no current plan to move in that direction.