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New federal tax proposed for insurance companies and banks

Congressional budget officials estimate that new federal tax proposals for some financial institutions could generate $5.3 billion over the next five years.

Two new PBO reports calculate the expected return from recovery dividends in Canada and the proposed permanent corporate tax hike for banking and life insurance groups.

The dividend is a 15% contingent tax on profits made by banks and life insurers during the pandemic, which the PBO says will generate $3 billion.

Finance Minister Chrystia Freeland is also proposing to raise the corporate tax rate on banking and insurance profits to more than $100 million.

The PBO says raising the rate from 15% to 16.5% would generate $2.3 billion over the next five years.

The federal budget announced last April predicted that the two measures would raise more than $6 billion.

canadian press

New federal tax proposed for insurance companies and banks

Source link New federal tax proposed for insurance companies and banks

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