Thank you, Mr. Speaker. Mr. Speaker, in reference to the budget address today, I have a question for the Minister of Finance. On page 14 it says effective January 1, 2004, we will be increasing the corporate income tax rate from 12 percent to 14 percent. It goes on to say -- and this is something that is complicated I know, but I wanted to make note of it -- as a result of rebasing the tax effort adjustment factor in the new formula financing agreement, the GNWT would actually lose revenues if we attract investments at the current corporate income tax rate. So we have gone from 12 percent to 14 percent and this puts us at a rate one-and-a-half percent higher than Alberta. What kind of an impact is this going to have on the possibility of large companies filing their income tax in other jurisdictions where the corporate rate is lower? Is that something that has been contemplated and considered? Thank you, Mr. Speaker.
Jane Groenewegen on Question 11-15(3): Corporate Income Tax Rate
In the Legislative Assembly on March 17th, 2004. See this statement in context.
Question 11-15(3): Corporate Income Tax Rate
Item 7: Oral Questions
March 16th, 2004
Page 31
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