Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • Pharmacare consensus principles released today September 24, 2018
    A diverse coalition representing health care providers, non-profit organizations, workers, seniors, patients and academics has come together to issue a statement of consensus principles for the establishment of National Pharmacare in Canada. Our coalition believes that National Pharmacare should be a seamless extension of the existing universal health care system in Canada, which covers medically […]
    Canadian Centre for Policy Alternatives
  • Kate McInturff Fellowship in Gender Justice September 19, 2018
    The CCPA is pleased to announce the creation of the Kate McInturff Fellowship in Gender Justice.This Fellowship is created to honour the legacy of senior researcher Kate McInturff who passed away in July 2018. Kate was a feminist trailblazer in public policy and gender-based research and achieved national acclaim for researching, writing, and producing CCPA’s […]
    Canadian Centre for Policy Alternatives
  • The buck-a-beer challenge Ontario deserves September 6, 2018
    Ricardo Tranjan proposes an alternate plan to Doug Ford's buck-a-beer challenge in the Toronto Star.
    Canadian Centre for Policy Alternatives
  • Growing number of professionals face job insecurity, study finds September 6, 2018
    The Toronto Star's Sara Mojtehedzadeh discusses the findings of the CCPA Ontario's report, No Safe Harbour and gathers firsthand accounts from precariously employed professionals who live and work in Ontario.
    Canadian Centre for Policy Alternatives
  • Our Schools/Our Selves: The view from West Virginia September 4, 2018
    Our latests publication, Lesson Here, digs in to the West Viriginia teachers' strike.  Read the firsthand accounts of the work stoppage here.
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

PotashCorp’s Annual Report: The Fine Print

The Potash Corporation of Saskatchewan posted its 2010 annual report yesterday. It’s always worth taking a closer look at documents released on a Friday afternoon.

Those interested in public revenues should see pages 109, 110 and 111. Note 19’s breakdown of “Provincial Mining and Other Taxes” confirms something that I had suspected.

PotashCorp paid zero Potash Production Tax in 2010. In other words, the company is swimming in writeoffs and had no taxable profits according to Saskatchewan’s profit-tax formula.

The company’s entire $77-million royalty payment was the provincial resource surcharge, set at 3% of sales. (Of course, 3% of potash sales is closer to 5% of potash gross margin).

Thank goodness Saskatchewan kept the resource surcharge when it eliminated its corporate capital tax. Otherwise, PotashCorp’s 2010 royalty payment would have been a big goose egg (and not of the golden variety).

Note 21 breaks down corporate income tax by country. While the report does not distinguish between federal and provincial income tax, the 30% “federal and provincial statutory income tax rate” clearly comprises the 18% federal rate plus the 12% Saskatchewan rate.

So, we can infer that PotashCorp’s 2010 Canadian income tax expense of $333 million comprises about $200 million to Ottawa and $133 million to provincial governments. Because the company also operates in other provinces, Saskatchewan is probably getting less than $133 million.

Meanwhile, PotashCorp is paying $113 million of corporate income tax in Trinidad, where it has a nitrogen facility. In the previous year, 2009, it actually paid more corporate tax to Trinidad than to all levels of Canadian government!

Congratulations, Trinidad, for collecting a decent amount of revenue from PotashCorp. Canada’s federal and provincial authorities need to pull up their socks.

Enjoy and share:

Write a comment





Related articles