Manitoba announces tax deferral for businesses affected by wildfires

Manitoba business owners will not be penalized for filing their taxes late if they have to put off paperwork because of a wildfire — nine of which were burning “out of control” on Thursday.

The Kinew government has begun offering voluntary tax deferrals to entrepreneurs from Flin Flon, Lynn Lake and other wildfire-affected communities across the province.

Operators can request a “penalty and interest waiver” when they pay overdue fees collected by the province, such as the retail sales tax and payroll tax (health and post-secondary education tax levy).

The measure is much like what the province introduced in March for local businesses whose bottom lines have suffered as a result of U.S. tariffs.

It was introduced on Wednesday and only covers provincially-administered tax returns.

“This option is being provided as many wildfire-affected businesses may not have access to relevant records, technical resources or the capacity to file at this time,” said a government news release that was put out one day later than initially planned.

Finance Minister Adrien Sala said in the release the provincial government is using “every tool available” to support residents during an unprecedented wildfire season.

The mandatory May 28 evacuation of Flin Flon has prompted a wave of calls to pause and cancel memberships at Sal’s Fitness Inc.

Owner Ryan Daneliuk said he will all but certainly need to put off paying taxes as long as possible to keep the gym, one of several businesses he runs in the city, afloat.

“We’ll have to see where our cash flow is when we get home and what the accounts are looking like,” Daneliuk said.

He noted all of his companies rely on in-person equipment and services and spring is a busy season, especially for lawn care and landscaping work.

“A deferral is just a deferral. It’s not relief,” he said.

At the same time, Daneliuk said he’s lucky to have savings in order to keep himself, his wife and their dog busy as firefighters battle a blaze encroaching on their hometown.

The Flin Flon and District Chamber of Commerce did not immediately respond to requests for comment on the newly-announced deferral initiative.

Premier Wab Kinew travelled about 800 kilometres northwest of Winnipeg on Thursday to see and hear directly from emergency responders in the region.

The fire near Sherridon and Flin Flon is the largest of its kind, as per the province’s latest emergency bulletin. It was approximately 760,000 acres in size on Thursday.

The second largest out-of-control blaze was 540,000 acres in eastern Manitoba, between Bird River and Bissett.

maggie.macintosh@freepress.mb.ca