News Release - May 6, 1999
SASKATCHEWAN TO EXAMINE INCOME TAX REFORM
Finance Minister Eric Cline today announced establishment of the
Tax Review Committee.
Named to the committee were Jack Vicq, Professor of Accounting at the
College of Commerce, University of Saskatchewan; Charlie Baldock, Tax
Partner with KPMG in Regina; and Shelley Brown, Managing Partner of
Ernst & Young in Saskatoon. Vicq will serve as chair of the
"This government is committed to reduced taxation," Cline said. "We
will continue to reduce taxes on an affordable basis, as we have done
every year since balancing the budget."
"We made a commitment in this year's budget to consult with
Saskatchewan people on how we can make the personal income tax system
simpler, fairer, more competitive and more responsive to peoples'
needs. We are honouring that commitment. The committee's mandate is
to consult with stakeholders and the general public on whether a
change to a system of tax on income could contribute towards meeting
Under the current system, provincial income tax is calculated as a
percentage of federal tax. In December, 1997 the Federal Government
agreed that provinces could be permitted to levy personal income tax
directly on taxable income. This is commonly referred to as a system
of tax on income.'
In October, 1998 Finance Ministers accepted a preliminary
framework under which a system of tax on income could be
Cline emphasized the committee's focus will be on examining
alternative personal income tax systems using the tax on taxable
"It may not be well understood that a tax on income does not
automatically mean a flat rate of taxation, such as Alberta has
proposed. These are two very separate decisions that need to be
"First, we need to decide whether to move to a new system of
taxation. Then, as a second question, we need to decide what
such a system should look like. The mandate of the committee is
first to report to me on whether a tax on taxable income can
contribute substantially towards a system of taxation that is
simpler, fairer and more competitive. Secondly the committee
will provide advice on the components of a tax on income."
The committee will seek input from business, labour and other
groups. Public meetings will also be held in every region of the
province. The committee is to present a report to the minister
in November, 1999. It's expected the report will be released to
the public in December.
For more information, contact:
Phone: (306) 787-6578