By Lisa Schick

Sask. potash production tax change disappoints PotashCorp

Mar 19, 2015 | 8:02 AM

PotashCorp is disappointed with the province’s budget, saying it invested in Saskatchewan and now the government is changing the game.
 
Changes are being made to potash taxation and to how capital expense deductions are calculated. According to the budget, the changes will give the province an immediate increase in revenue by deferring capital investment deduction from current capital spending to future years.
 
In a statement on Wednesday, PotashCorp said those changes are expected to decrease the company’s pre-tax earnings by $75 – $100 million in 2015.
 
“While we understand the difficult revenue situation facing the Government, we are nearing completion of a $6 billion investment in Saskatchewan which was based on the existing tax structure remaining in place,” said PotashCorp’s president and CEO, Jochen Tilk, in the statement.
 
A potash taxation review was also announced in the budget. Tilk said the company wants to make sure that any changes to the tax structure will “ensure benefits to the people of Saskatchewan, while also protecting the competitiveness of the industry and the long-term interests of (PotashCorp’s) investors.”

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