Contributions

Saskatchewan's electoral legislation does not limit the amount of contributions a registered political party or candidate may collect, however, contributions cannot be collected from persons outside Canada who are not Canadian citizens. As well, no anonymous contribution in excess of $250.00 may be accepted by a registered political party or candidate. Any such contribution must be reported and forwarded by the chief official agent or business manager to the Chief Electoral Officer.

Contributions can be in the form of money and/or donation of goods or services. All contributions in excess of $250.00 must be disclosed in registered political party or candidate audited financial returns, including the name of the donor and the aggregate contribution amount by any individual, corporation, trade union, unincorporated organization or association or any other person or group of persons.

        Expenditures

Election expenses are defined under the Election Act as the cost of goods and services used during an election for the purpose of promoting or opposing, directly or indirectly, a registered political party or the election of a candidate, regardless of whether those costs are incurred before, during or after the election. Election expenses may be incurred in the form of money spent, liabilities incurred or donations in kind accepted.

Election expenses may be incurred prior to or during the election period for goods used or services provided during the election period. It is important to note that election expenses arise only when goods or services are used or provided during an election period for the purpose of supporting or opposing a candidate or a registered political party in the election. If the goods or services are consumed during the election period their value must be declared as an election expense regardless of whether payment for the goods or services is made before, during or after the election period.

       Election Expense Limits

Election campaign activities of registered political parties and candidates are subject to certain expense limitations under the Election Act. In respect of spending, election expense limitations are imposed on the amounts that can lawfully be incurred by a party or candidate. A second limit regulates the reimbursement entitlement of a qualifying party or candidate (and reimbursement of auditor accounts).

Expense limits are based on factors specific to which the expenses pertain (i.e. general election or by-election), on whether an election is held in a northern or southern constituency and on an established formula, adjusted each calendar year.

        Province of Saskatchewan Expense Limits 2007

Public Funding

A further element of Saskatchewan's electoral system is the state-financed program supporting registered political parties and candidates. State support, in the nature of reimbursements of a portion of the lawfully incurred election expenses and state subsidization through a tax credit political donation process makes it possible for people irrespective of wealth to participate in the election process.

       Reimbursement of Election Expenses

A registered political party or a candidate is entitled to receive reimbursement of a portion of their lawfully incurred election expenses. To be eligible for reimbursement, a registered political party must have endorsed candidates who, in the aggregate, have received not less than fifteen (15) percent of all valid votes cast in the election and whose chief official agent has completed and submitted an audited election expenses return. To be eligible for reimbursement, a candidate must have obtained not less than fifteen (15) percent of all valid votes cast in the constituency and his or her business manager must have completed and submitted an audited election expenses return.

Based on the information contained in its audited financial return, a qualifying registered political party is entitled to reimbursement of a sum equal to one-half of their lawfully incurred election expenses.

Candidates are entitled to be reimbursed a sum equal to (60) percent of their lawfully incurred election expenses.

       Auditors

The reporting requirements and the responsibility assumed through consenting to appointment as auditor of a registered political party or candidate includes reporting in writing to the chief official agent or business manager on the respective election expenses return prepared on behalf of the party or individual candidate.

The auditor must employ generally accepted accounting principles/auditing standards when conducting review of spending and financial records of a party or candidate. The auditor is entitled, at reasonable times, to have access to all records, documents, books, accounts and vouchers of the candidate's business manager or the registered political party's chief official agent.

The auditor's duties extend to thorough examination of the accounting records of a party or of a candidate permitting him or her to reach an opinion as to whether the return examined presents fairly the transactions contained in the accounting records on which the return is based. It is compulsory that the party's chief official agent or candidate's business manager provide the information and explanations necessary to facilitate preparation of the auditor's report. In instances where the auditor has reason to believe or is suspicious that proper accounting records were not kept by the party or candidate, the auditor must report the same.

        Tax Credits for Contributions

The political contributions tax credit system, under The Political Contributions Tax Credit Act, 2001 (the "Tax Credit Act"), provides provincial resident taxpayers, inclusive of individuals and corporations, the opportunity to claim tax credits against Saskatchewan income tax payable based on eligible contributions to a registered political party or independent candidate for which a valid receipt was obtained. The Tax Credit Act governs the Province's political tax credit system and provides a basis for calculating political contribution tax credits for use by provincial resident taxpayers under The Income Tax Act, 2000 (Saskatchewan)(the "Provincial Tax Act").

The Tax Credit Act allows for tax credits for monetary contributions only. Tax receipts may be issued for every eligible contribution received by a registered political party or independent candidate which exceeds $25.00. Official receipts for income tax purposes must only be issued in the name of the contributor.

Official income tax receipts must be issued by a chief official agent on behalf of a provincial registered political party or by a business manager for an independent candidate. Chief official agents can issue receipts only if their names are recorded in the Register of Political Parties maintained by the Chief Electoral Officer under the Election Act. The business manager of an independent candidate is eligible to issue tax receipts on behalf of the independent candidate if the validity of the candidate's nomination has been certified by the constituency returning officer.

A chief official agent of a participating registered political party must file a reconciliation of tax receipts used in the preceding calendar year with the Chief Electoral Officer. Copies of each issued, spoiled and/or duplicated receipt must accompany the annual filing.

In circumstances where an independent candidate participates in the Province's political contributions tax credit regime, the business manager must file, on or before thirty (30) days after a polling day, a reconciliation of tax receipts provided for use in the campaign period together with the total amount of contributions receipted. Copies of each issued, spoiled and/or duplicated receipt must accompany the filing, along with all unused receipts.

       Disposition of Surplus Campaign Funds

Public financing of candidates is intended to encourage participation and reduce the potential for undue influence of a few important contributors. It is not intended to result in personal financial benefit for candidates. As such, the Election Act requires that a candidate's campaign surplus be remitted to the registered political party who endorsed the candidate or the local constituency association of such a party in the candidate's constituency. For independent candidates not sponsored by a registered political party, these funds must be submitted to the provincial treasury.

Public Disclosure

Public disclosure of election financing information is one of the cornerstones in maintaining the transparency of the process. It is an essential element in the control and monitoring of expenditures and in ensuring accountability for the financial affairs of participants in the political process.

The Election Act sets out the disclosure requirements for candidates and registered political parties concerning contributions, loans and expenditures. It also specifies the obligation of the Chief Electoral Officer to publish a summary of contributions and expenses of candidates in each constituency.

To meet the objectives of disclosure, financial information must be timely, accessible and in a format that facilitates review and analysis. To achieve the objective established for public disclosure of information, it is necessary to make this information available as quickly as possible during and after an electoral event. In this regard, candidate's financial returns must be filed with the returning officer within three (3) months after Election Day and, as public documents, the returning officer will make the return available for the following six (6) months. In addition, a constituency returning officer must publish in local newspapers a summary of contribution and expenses of candidates in each constituency. Registered political parties must file annual fiscal returns of contributions and expenses as well as a separate election expenses return within six (6) months after Election Day.

Pursuant to public inquiry, the Chief Electoral Officer will supply to any person who requests copies of or extracts from the registers or any report, return or document with respect to a registered political party or candidate that the registered political party or candidate is required to file with or send to the Office. It should be noted that such reports, returns and documents may not be complete or may contain errors as the Office's review of such documentation may not have been completed at the time of initial public inspection. Following a thorough Office review and verification, all finalized reports, returns and documents remain available for public inspection.

Pursuant to the Election Act, annual registered political party and independent candidate campaign period filings together with tax receipts issued to any one contributor whose aggregate value exceeds $250.00 in a calendar year are available for public inspection.

Saskatchewan Political Contributions Tax Credit

Overview

The political contributions tax credit system provides resident taxpayers, inclusive of individuals and corporations, the opportunity to claim tax credits against Saskatchewan income tax payable based on eligible contributions made to a registered political party or independent candidate for which a valid tax receipt was obtained. The Political Contributions Tax Credit Act, 2001 (Saskatchewan) (the "Tax Credit Act") governs the Province’s political contributions tax credit for use by provincial resident taxpayers under The Income Tax Act, 2000 (Saskatchewan) (the "Provincial Tax Act").

Where a registered political party or independent candidate solicits funds and thereon issues tax receipts, the receipts must be consistent with the policies underlying the Tax Credit Act to qualify under the Provincial Tax Act. The Chief Electoral Officer has interpreted these policies to include the election of Members of the Legislative Assembly and activities necessarily incidental thereto. As a result, registered political parties and independent candidates may receipt contributions received from provincial resident taxpayers, in accordance with the Tax Credit Act, when such contributions are utilized to advance the democratic process in Saskatchewan.

Tax Receipts

Tax receipts may be issued for every eligible contribution received by a registered political party or independent candidate which exceeds $25.00. The tax credit available to provincial resident taxpayers, deductible against their Saskatchewan income tax payable, is calculated in accordance with the following formula:

• where the total eligible contribution is $400 or less, the amount of the tax credit that a taxpayer is entitled to claim for a taxation year is 75% of the total contribution; or



• where the total eligible contribution is greater than $400 but not greater than $750, the tax credit is $300 plus $50% of the amount by which the total contribution exceeds $400; and



• where the total eligible contribution is greater than $750, the tax credit a taxpayer is entitled to claim is the lesser of:




$475 plus 33 1/3% of the amount by which the total contribution exceeds $750; or





$650.

Official income tax receipts must be issued by a chief official agent on behalf of a registered political party or by a business manager in the case of an independent candidate. Chief official agents can issue receipts only if their names are recorded in the Register of Political Parties maintained by the Chief Electoral Officer. The business manager of an independent candidate is eligible to issue tax receipts on behalf of the independent candidate if the validity of the candidate’s nomination has been certified by the constituency returning officer in accordance with subsection 48(2) of The Election Act, 1996 (Saskatchewan)(the "Election Act").

Annual Campaign Period Reporting

In accordance with the Tax Credit Act, a chief official agent of a participating registered political party shall file a reconciliation of tax receipts used through the preceding calendar year. This reconciliation shall be filed with the Chief Electoral Officer in prescribed form on or by the last day of April. This annual reporting is undertaken on an Annual Report of Contributions (Registered Political Party) (Form P-602) and details the aggregate amount of contributions receipted, the number of tax receipts issued, spoiled or duplicated, and the number of tax receipts retained (i.e., unused). Copies of each issued, spoiled and/or duplicated receipt must accompany such annual filing.

In circumstances where an independent candidate participates in the Province’s political contributions tax credit regime, that candidate’s business manager, in accordance with the Tax Credit Act, shall file - on or before thirty (30) days after polling day - in prescribed form, a reconciliation of tax receipts provided for use during the campaign period, together with the aggregate amount of contributions receipted. Independent candidates campaign period reporting is submitted on a Campaign Period Report of Contributions (Independent Candidate) (Form P-606). Copies of each issued, spoiled and/or duplicated receipt must accompany the filing, along with all unused receipts.

Pursuant to the Election Act, annual registered political party and independent candidate campaign filings, on Form P-602 and P-606 respectively, are available for public inspection at Elections Saskatchewan.