Saskatchewan Passes New Provincial Revenue Agency Act

The Saskatchewan Revenue Agency Act (SRA), Bill 122, has passed third reading in the province and is now awaiting royal assent before being written into law.

The provincial government says the legislation allows the province to create its own tax revenue agency, to have “greater autonomy” over how taxes are collected within the province and that the bill is necessary to keep the federal government from encroaching on Saskatchewan’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,” Deputy Premier and Finance Minister Donna Harpauer said in a previous release on Dec. 5, 2022, announcing the legislation.

The vote on Bill 122 was held during the May 9 session of the legislature, with 43 in favour, and 10 opposed.

Bill 122 was first introduced on Dec. 5, 2022. The province said in the release that the legislation “creates the framework for a new Treasury Board Crown corporation” which would be responsible for administering taxes and related programs in the province, including taking control of the provincial portion of the corporate income tax system from Ottawa.

Under the SRA, personal income tax would still be collected by the CRA.

“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,” said the Dec. 5 release.

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

At the time the bill was introduced, NDP finance critic Trent Wotherspoon said the idea would add “significant complexity” to the 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.

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