NEWS
Important Update: New PST Penalties in Saskatchewan
As part of Saskatchewan’s 2024-25 Budget, the provincial government has introduced new Provincial Sales Tax (PST) penalties aimed at promoting compliance with tax regulations. These changes came into effect on October 1, 2024, and impact businesses that remit PST.
Why These Changes Matter
The Saskatchewan Ministry of Finance is focused on ensuring all businesses fulfill their tax obligations, creating a fair and competitive business environment. These new penalties apply to specific areas of non-compliance to encourage timely and accurate filing of tax returns.
What Are the New Penalties?
Effective October 1, 2024, the following penalties apply to businesses that remit PST:
- Late Filing Penalty:
- A new $50 penalty will apply if a business fails to file its PST return on time. This penalty is assessed for each return period missed.
- Late Payment Penalty:
- Previously capped at $500, the 10% penalty for failing to pay PST owed by the due date now has no maximum limit. This means that businesses may incur a higher penalty if they do not pay on time.
- Failure to Produce Records Penalty:
- A $500 penalty will apply each time a business fails to provide books, records, or other documentation when requested by the Ministry of Finance.
- Incorrect Filing or Incomplete Return Penalty:
- A $100 penalty applies each time a business fails to:
- File a return or form in the manner required (e.g., filing a paper return when required to file electronically).
- Complete all information required on any return or form (e.g., missing line items on a return).
- Multiple penalties may apply for a single return period if more than one filing requirement is not met.
- A $100 penalty applies each time a business fails to:
Additional Information
These changes underscore the importance of maintaining accurate tax records and ensuring timely filing and payment of taxes owed. To avoid these penalties, ensure your returns are complete and filed correctly.
If you have any questions please contact your trusted Stark & Marsh advisor.
For more details, please refer to:
- Saskatchewan.ca/business-taxes
- Bulletin GENERAL-1: “Penalty and Interest Charges,” which outlines the Ministry’s general approach to tax penalties and compliance measures.
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