The government will introduce the Saskatchewan Revenue Service Act, aimed at creating a new national corporation to take over control of the state portion of the corporate income tax.
REGINA – The state government on Monday announced plans to introduce a new state-owned enterprise to take over the state portion of the corporate income tax system.
In Congress, Treasurer Donna Harpower presented the Saskatchewan Revenue Service Act for its first reading. This new law establishes the framework for a new Treasury Crown Corporation, called the Saskatchewan Revenue Authority, to administer taxes and related programs in Saskatchewan.
Harpauer told reporters the new company would be primarily responsible for taking over control of the state portion of the corporate income tax system from the federal government.
“In Alberta, we collect corporate income tax. In Quebec, we collect all taxes,” Harpauer said.
The state sees these moves as the first step in a larger effort related to transforming the state’s corporate income tax system, according to a news release.
At this time, this new agency will only collect and administer corporate income tax. As for how the changes will affect corporate tax returns, Harpauer confirmed that it means the corporate income tax schedules will be separate.
Harpauer said it would not collect the federal portion. State part only. So another schedule is needed.
The state believes there are several advantages to going this route of collecting corporate income taxes.
Mr Harpauer said there is a lag of about two years in getting corporate income tax information from the Canada Revenue Agency.
Harpauer said taking over would allow states to get timely information when considering industry-specific incentive programs.
“You can identify the actual companies within that industry in real time, not two years from now,” she said.
Another factor Harpauer pointed out was changes the federal government made to passive income. If you go on maternity leave, you can still run your business, pay your employees and pay your office expenses. Now, if states administer corporate income taxes, they can deal state by state.
Harpauer told reporters that he believes the change is worthwhile in order to attract investment.
“The incentive programs that we have in place have attracted a lot of investment to our state. Going forward, as we grow our state, more investment will be very important to us.” I think,” Harpauer said. “I think this change will give us the data to know where we need to identify investments.”
Opposition commentator Trent Wotherspoon told reporters, “This is a really backwards plan, a more expensive plan, with no merit,” accusing the government.
“It’s also less efficient. For example, companies have to file twice. [they] Hiring 100 or 150 tax collectors and tax professionals at a cost of $15 million to $25 million per year will be a priority. ,classroom.