Sask. tax incentive entices B.C. firm

Agrocorp Processing plans to take advantage of provincial incentives to move its Canadian head office from Vancouver to Moose Jaw.

Design work is underway for an office building next to the pulse processing plant that has been operating in the city since 2013.

Colin Topham, managing director of Agrocorp Processing, said the company is evaluating which incentives it can use, but prefers one for manufacturers and processors.

“There’s a 12-percent reduction differential between B.C. corporate income tax and Saskatchewan,” he told reporters. “So that’s a huge incentive. A huge part of our growth plan is to reinvest money that we’re making and that 12 percent comes right back into helping us grow our business in Canada.”

Premier Brad Wall said the government has used new growth tax incentives before.

“This specific tool (says) to a company if you bring employees here we know they’re going to bring income tax revenue to the province that wasn’t here before,” he said. “That could be partially offset with a credit on corporate income tax.”

Agrocorp’s world headquarters is in Singapore and it has 17 offices around the world.

In Canada it has 15 employees in Vancouver and 50 across Canada; 20 of those jobs are currently in Moose Jaw at its plant, which processes 250,000 tonnes of pulses per year.

The head office is expected to be built next year and the company says it will add 20 new jobs over the next three years.

“We’re on the hunt for new acquisitions every day,” said Topham. Agrocorp bought Veikle Grain in Cut Knife, Sask., this spring.

Wall added he first met Agrocorp’s Singapore-based managing director Vijay Iyengar during a trade mission and encouraged the company to invest in Saskatchewan.

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