Saskatchewan Looks to Create Its Own Revenue Agency to Achieve ‘Greater Autonomy’ in Tax Collection

Finance Minister Donna Harpauer presents the Saskatchewan budget in the legislature in Regina on March 23, 2022. (The Canadian Press/Liam Richards)

The Saskatchewan government has introduced legislation aimed at creating its own tax revenue agency in order to grant itself “greater autonomy” over how taxes are collected within the province.

On Dec. 5, the government introduced the Saskatchewan Revenue Agency Act, which “creates the framework for a new Treasury Board Crown corporation” that will be called the Saskatchewan Revenue Agency (SRA), according to a news release.

The SRA would not completely replace the Canada Revenue Agency (CRA) within the province, but it would take some tax-collecting responsibilities, particularly in relation to corporate income tax collection, away from the federal department. The legislation would leave the collection of personal income tax in the hands of the CRA.

“The SRA would be responsible for administering taxes and related programs in Saskatchewan, including taking control of the provincial portion of the corporate income tax system from the federal government,” the release said.

“The Bill is basic in its design, containing standard provisions required to establish a new government agency, including its purpose, powers, overarching governance structure, accountabilities and regulation making authority.”

The act will also introduce a multi-year plan “on establishing a structure of a new provincial corporate income tax system.”

‘Federal Intrusion’

The province’s Deputy Premier and Finance Minister Donna Harpauer said the act is designed to be a direct countermeasure against federal encroachment on the province’s jurisdiction.

“This Act is among the steps our government is taking to protect and defend Saskatchewan’s economic autonomy, industries and jobs from federal intrusion and constitutional overreach,” Harpauer said in the release.

She added that the province’s transition away from complete federal tax collection is a necessary step “to stand up for Saskatchewan.”

Harpauer told reporters on Dec. 5 that the province hopes the proposed tax agency will be “very close to revenue neutral” for the government, adding that the province is currently charged by the federal government for any changes it makes to provincial taxation.

“There will be a cost, but there’s also a revenue stream that would come with it,” she said, according to CBC.

NDP provincial finance critic Trent Wotherspoon criticized the proposed SRA, saying that it will add “significant complexity” to the province’s tax system.

“All they’re doing is growing a bigger government and making things more cumbersome for business,” he said, according to the Regina Leader Post. “It’s backward, it costs more, it’s a boneheaded exercise.”

A little over one month ago, the Saskatchewan government also introduced Bill No. 88, also called “An Act to Assert Saskatchewan’s Exclusive Legislative Jurisdiction and to Confirm the Autonomy of Saskatchewan.”

Saskatchewan’s justice minister and attorney general Bronwyn Eyre called No. 88 “historic legislation [that] will help protect our economic growth and prosperity from intrusive federal policies that encroach upon our legislative sovereignty.”

If passed, the legislation will amend Saskatchewan’s constitution to affirm provincial jurisdiction such as exploration of non-renewable natural resources and forestry conservation and management.

Andrew Chen contributed to this report.