COMMITTEE MEMBERS NAMED FOR INDEPENDENT BUSINESS TAX REVIEW

Jack Vicq, Charlie Baldock and Cheryl Shepherd have been tasked with undertaking an independent Business Tax Review to examine the impact of Saskatchewan business taxes on the province's economic and business climate.

They will assess the tax system's competitiveness and effectiveness in encouraging job creation and investment.

The three members were presented by Finance Minister Harry Van Mulligen at a news conference this morning in Regina.

"Jack Vicq and Charlie Baldock are returning members of the very successful Personal Income Tax Review Committee undertaken in 1999. They are both Chartered Accountants and recognized experts in taxation who have a proven track record in public policy reform through their participation in that committee," Van Mulligen said. "I am very pleased that two members of that committee have agreed to serve again, with Jack as chair and Charlie as vice-chair.

"Cheryl Shepherd, also a Chartered Accountant specializing in taxation, is new to this type of review. She brings broad-based business expertise to the table and complements the expertise of the other two panel members," Van Mulligen added.

The review will involve more than an evaluation of tax rates. The committee will examine key issues such as:

· How do Saskatchewan's business tax rates and levels compare with other jurisdictions?

· What is the impact of lowering various taxes on Saskatchewan's competitive position?

· What changes in Saskatchewan's tax mix would result in the largest economic return for the province as a whole?

· In particular, does the Government rely too heavily on capital-based taxation including the Corporation Capital Tax?

· Are there changes to existing business subsidies and tax expenditures that could assist in improving Saskatchewan's tax competitiveness?

· What changes can be made that are sustainable within the province's fiscal plan?

Last December, the Institute of Chartered Accountants of Saskatchewan presented the government with a detailed proposal for a business tax review. The Institute noted the success of the Government's review and reform of personal taxes in 2000 and suggested that a similar review of business taxes could further improve Saskatchewan's business climate to promote economic development and diversification. Support for a business tax review was also raised at the Saskatchewan Centennial Economic Summit in January.

"I look forward to seeing the fruits of the committee's review. I have asked the chair to provide me his report no later than November 30th of this year, for use in the 2006-07 budget development process," Van Mulligen said.

Attachments:
Biographies of Panel Members
Business Tax Review Technical Backgrounder

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For More Information, Contact:

Lorri Thacyk Finance Regina Phone: (306)787-6605 Cell: (306)537-0943