Insurance industry. Key tax rates and updates.

Transcription

1 Insurance industry Key tax rates and updates Tax changes, rates, deadlines and other useful information for the insurance industry in Canada. 2015

2 Insurance industry: Key tax rates and updates This booklet is available at:

3 Contents Recent tax changes: Selected highlights... 1 Recent tax cases... 7 Key tax dates... 8 Canadian premium and fire tax Rates and deadlines... 9 Sales tax Rates and deadlines Corporate income tax rates for Capital tax rates for Publications Insurance help Who to contact For more information, please contact: your PwC insurance industry adviser any of our insurance industry advisers listed at or: Jason Swales Tax Financial Services Leader jason.a.swales@ca.pwc.com Mario Seyer Indirect Tax Services mario.seyer@ca.pwc.com Yves Magnan Corporate Tax Services yves.magnan@ca.pwc.com Allan Buitendag National Insurance Leader allan.c.buitendag@ca.pwc.com Some cautions Rates and other information are current to August 20, 2015, but may change as a result of legislation or regulations issued after that date. This booklet is published with the understanding that PricewaterhouseCoopers LLP (PwC) is not thereby engaged in rendering accounting, legal or other professional service or advice. Comments in this booklet are not intended to constitute professional advice, nor should they be relied upon to replace professional advice. No part of this booklet may be reproduced without permission from PwC.

4 1 Recent tax changes: Selected highlights Corporate income tax rates for 2015 Combined federal and provincial/territorial corporate income tax rates are listed on page 11. Status of changes for accounting purposes Income tax changes will be recognized for accounting purposes: in Canada if they are considered substantively enacted in the United States if they are enacted Tables on pages 4 and 6 show whether corporate tax rate changes effective after 2013 are recognized for accounting purposes. All information is current to August 20, Federal changes Eligible capital property (ECP) regime Draft legislative proposals that replace the ECP regime with a new capital cost allowance class and include transitional rules will be released for comment. Life insurers and policyholders Key changes affecting the taxation of life insurance policies, generally issued after 2016, amend the determination of: whether a life insurance policy is an exempt policy what types of transactions give rise to a disposition of an interest in a policy the tax treatment of a disposition of an interest in a policy (having regard to both the adjusted cost basis of the interest and the proceeds of disposition) Consequential amendments were also made to the life insurer s investment income tax. Avoidance of corporate capital gains For dividends received after April 20, 2015, the anti-avoidance rule in section 55 of the Income Tax Act, which generally taxes as capital gains certain otherwise tax-deductible inter-corporate dividends in certain situations, is proposed to be amended to address various matters, including to ensure it applies when one of the purposes for a dividend is to effect a significant: reduction in the fair market value of any share, or increase in the total cost of properties of the dividend recipient Synthetic equity arrangements For dividends paid or that become payable after April 2017 (after October 2015, for agreements or arrangements generally entered into, acquired, extended, renewed or modified after April 21, 2015) the dividend rental arrangement rules are modified to deny the inter-corporate dividend deduction on dividends received by a taxpayer on a Canadian share in respect of which there is a synthetic equity arrangement. Certain exceptions are provided.

5 2 Trusts and estates Starting 2016 taxation years: a flat top-rate tax (instead of graduated tax rates) will apply to testamentary trusts, estates, and grandfathered inter vivos trusts; however, certain testamentary trusts will be able to use graduated tax rates testamentary trusts, other than graduated rate estates, will be required to have calendar taxation years the amount that a trust can designate as not having been paid or payable to a beneficiary will be limited the tax on taxable capital gains that arise in spousal trusts (testamentary or inter vivos), joint spousal trusts, alter ego trusts or self-benefit trusts on the death of certain individuals, will be payable by the deceased individual s estate because the taxable capital gain will be deemed payable to that estate See our Tax Insights New tax rules for testamentary trusts: The bad and the good (and some surprises) at Foreign property reporting For taxation years beginning after 2014, taxpayers whose total cost of foreign property is less than $250,000 throughout the year can report the property using a simplified foreign asset reporting form. Withholding tax for non-resident employers Certain non-resident employers with non-resident employees working temporarily in Canada will be exempt from payroll withholding requirements, effective January 1, See our Tax Insights Canadian payroll relief clarified for foreign employers with frequent business travellers to Canada at Captive insurance For taxation years beginning after February 10, 2014, an anti-avoidance rule in the foreign accrual property income (FAPI) regime was clarified to ensure that it applies to certain captive insurance arrangements, commonly known as insurance swaps. Subsequently, additional measures to further tighten this anti-avoidance rule were introduced. For taxation years that begin after April 20, 2015, if a foreign affiliate cedes a portfolio of Canadian risk in exchange for a portfolio of foreign risk, the difference between the fair market value and the cost of the Canadian risks will be included in computing the affiliate s FAPI. Demutualization of property and casualty (P&C) insurers Effective July 1, 2015, a regulatory framework provides a process for mutual P&C insurers to demutualize and convert into a stock insurance company. Automatic exchange of information Starting July 1, 2017, Canada will implement the new common reporting standard for automatic information exchange developed by the Organisation for Economic Co operation and Development (OECD), allowing a first exchange of information with other countries in 2018.

6 3 Treaty shopping On September 16, 2014, the OECD released Preventing the Granting of Treaty Benefits in Inappropriate Circumstances Action 6: 2014 Deliverable, largely adopting a treaty-based approach to address treaty abuse. Canada s February 11, 2014 federal budget announced the federal government was conducting a consultation on a proposed domestic rule to prevent treaty shopping. However, on August 29, 2014, the Department of Finance stated that it had instead decided to await further work by the OECD and the Group of 20 in relation to the Base Erosion and Profit Shifting (BEPS) initiative. Canada s April 21, 2015 budget did not include a recommendation for a specific approach to deal with abusive treaty shopping, because the federal government continues to monitor OECD recommendations on this front. Tax Information Exchange Agreements (TIEAs) Canada is negotiating seven TIEAs and has signed one that is not in force. Twentytwo have entered into force (one on behalf of five jurisdictions). Automobile deductions and benefits The 2015 prescribed rates for automobiles for purposes of determining tax-exempt allowances are 1 per kilometre higher than for All other 2015 prescribed rates will remain at their 2014 levels. For more information, see Car expenses and benefits A tax guide at Registered retirement income funds (RRIFs) Commencing 2015, the minimum annual withdrawal amount for RRIF holders age 71 to 94 will be reduced. RRIF holders who have already withdrawn more than the 2015 minimum amount can recontribute the excess until February 29, 2016, and deduct it in Retirement savings plans and deferred profit sharing plans Contribution limits for retirement savings plans and profit sharing plans are increasing: Registered retirement savings plans (RRSPs) Defined contribution registered pension plans (RPPs) Deferred profit sharing plans (DPSPs) 2014 $24,270 $24,930 $12, $24,930 $25,370 $12, $25, Indexed Defined benefit registered pension plans (RPPs) The maximum pension benefit that can be paid from these plans is increasing: Pension benefit (per year of service) 2014 $2, $2, Indexed

7 4 Notice of assessment For appeals made after royal assent to the enacting legislation, clarifications will ensure that the Canada Revenue Agency and the courts can increase or adjust an amount included in an assessment while that assessment is under objection or appeal, but only if the total amount of the assessment does not increase. Status of outstanding draft legislative proposals The Department of Finance indicated that the following tax proposals that were announced before April 1, 2013, but were not passed into law by that date will not proceed: interest deductibility reasonable expectation of profit measures loss of mutual fund trust status See our Tax Insights Outstanding legislative tax proposals announced before April 1, 2013: Where do they stand? at Goods and Services Tax/ Harmonized Sales Tax (GST/HST): Reinsurance premiums paid to non-resident related parties The Department of Finance has clarified its policy intent for determining the amount of GST/HST that is payable by Canadian-resident insurers on reinsurance premiums paid to non-arm s length non-resident insurers. Uncertainty had stemmed from the broad definition of loading in section 217 of the Excise Tax Act and the policy reasons for enacting special self-assessment rules for financial institutions. See our Tax Insights GST/HST alert: Reinsurance premiums paid to non-resident related parties An update at Provincial changes Alberta General corporate income tax rate Alberta s general corporate income tax rate increased: Effective date Rate Before July 1, % July 1, % Recognized for accounting purposes? Canada US Insurance premiums tax Alberta s March 26, 2015 budget had announced that on April 1, 2016, the insurance premiums tax rates would increase by one percentage point to: 3% on premiums for life, accident and sickness insurance 4% for other insurance Because a new government was formed after the May 5, 2015 Alberta election, it is uncertain whether this rate increase will proceed. It is expected Alberta s new government will release a new budget in the fall of Yes

8 5 Insuring Canadian operations with offshore insurers Under an agreement between Alberta s Superintendent of Insurance and the Alberta Tax and Revenue Administration (TRA), the TRA s income tax auditors will be reviewing Alberta corporate taxpayers (and indirectly, their non-resident affiliates) for compliance with Alberta s 50% tax for insurance placed on Alberta risks with insurers who are not licensed to carry on an insurance business in Alberta. See our upcoming Tax Insights Do you insure your Canadian operations with offshore insurers? If so, you may be liable for tax! at Manitoba Data Processing Investment Tax Credits The credits are extended by three years to December 31, In addition, retroactive to January 1, 2014, the Data Processing Centre Investment Tax Credit is broadened by: including new data processing centres built in Manitoba and leased to another Manitoba company that is not affiliated with the lessor allowing taxpayers eligible for the credit to include data processing centres built using a business structure that is not a corporation Newfoundland and Labrador Harmonized Sales Tax (HST) On January 1, 2016, the HST rate will increase from 13% to 15% (the provincial portion of the HST will increase from 8% to 10%). Nova Scotia Tax, regulatory and fee review Nova Scotia will consider the recommendations in the November 2014 Tax and Regulatory Review Report by consulting with Nova Scotians and creating a tax working group to consider implementation challenges and opportunities. Ontario General corporate income tax rate This rate is frozen at 11.5% until the province returns to a balanced budget (scheduled for ). It was to have dropped to 11% on July 1, 2012, and to 10% on July 1, Ontario retirement pension plan (ORPP) Under the proposed ORPP, employers and employees that do not already participate in a comparable pension plan will each be required to contribute up to 1.9% on a maximum annual earnings of $90,000 (maximum annual contributions of $1,710 each). Contributions would be phased-in, starting 2017, reaching 1.9% by Benefits would be paid starting 2022 and would aim to provide an annual pension of 15% of an individual s earnings up to $90,000 (maximum annual pension of $13,500). Amounts are in 2014 dollars and would be indexed.

9 6 Quebec General corporate income tax rate Quebec s general corporate income tax rate will decrease: Effective date Rate Before January 1, % January 1, % January 1, % January 1, % January 1, % Recognized for accounting purposes? Canada US Not as of August 20, 2015 Compensation tax for insurers Quebec s compensation tax on insurance premiums is changing: Effective date Rate Before December 3, % December 3, % April 1, % April 1, 2019 Nil Insurance premium tax The tax rate on capital imposed on insurance corporations increased from 2% to 3% on: premiums payable, relating to the life, health or physical well-being of the insured taxable premiums paid, as part of an uninsured employee benefit plan, to an insurance corporation or its agent, for taxation years ending after December 2, 2014 (pro-rated for taxation years straddling December 2, 2014). Refundable tax credit for on-the job training periods For eligible expenditures generally incurred after March 26, 2015: base rates will increase for corporations, from 24% to 40%, and for individuals, from 12% to 20% higher rates will increase for a person with a disability, from 32% to 50%, and for immigrants, from 16% to 25%, and will be available only if additional conditions are met Aggressive tax planning transactions The scope of transactions that must be disclosed to the tax authorities will be broadened, generally for transactions carried out as of March 26, Retail sales tax on automobile insurance premiums Quebec s retail sales tax rate on automobile insurance premiums increased to 9% from 5% for premiums paid after December 31, 2014.

10 7 British Columbia, New Brunswick, Northwest Territories, Nunavut, Prince Edward Island, Saskatchewan and Yukon No significant changes were made to the rules that apply to insurers in British Columbia, New Brunswick, the Northwest Territories, Nunavut, Prince Edward Island, Saskatchewan or the Yukon. Recent tax cases The following recent tax case may be of interest. Life insurer not entitled to bump in cost base of designated insurance property In The Standard Life Assurance Company of Canada v. The Queen, the Tax Court of Canada (TCC) agreed with the Minister that the taxpayer was not entitled to a bump in cost base of its designated insurance property in the 2006 and 2007 taxation years, resulting in a significant increase in the taxpayer s taxable income. The taxpayer, a Canadian life insurance company, argued that it met the requirements for the bump in cost base because for 2006 and 2007, it carried on an insurance business in both Canada and Bermuda (through a branch), and that the statutory interpretation of designated insurance property was met. The Income Tax Act provides that if property of a life insurer resident in Canada that carries on an insurance business in Canada and in a country other than Canada, is designated insurance property of the insurer for a taxation year, was owned by the insurer at the end of the preceding taxation year but was not designated insurance property of the insurer for that preceding year, then the insurer is deemed to have disposed of that property at the beginning of the year for fair market value proceeds and to have reacquired it for such fair market value without having to realize a gain or loss from the deemed disposition. The TCC found that the taxpayer did not factually carry on business in Bermuda in 2006 or 2007 and the statutory interpretation of designated insurance property was not met. Valuation of option contracts In Kruger Incorporated v. Her Majesty the Queen, the TCC considered whether Kruger was entitled, in computing its income for the 1998 taxation year, to deduct $91 million relating to a mark-to-market adjustment on unrealized foreign exchange option contracts, some of which Kruger had written, and others it had purchased. Kruger also submitted that it held the options as inventory and could therefore carry them at fair market value. The TCC did not permit Kruger to value its option contracts on a mark-to-market basis. However, the TCC accepted that the purchased option contracts were inventory of Kruger s business of speculating in option contracts and could therefore be valued at fair market value. In addition, the TCC found that the options Kruger itself had written were obligations, i.e. liabilities, rather than property that could be classified as inventory. Accordingly, any costs to satisfy the obligations could be deducted only when the contracts were settled. See our Tax Insights TCC s decision in Kruger: Valuation of option contracts at

11 8 Key tax dates The following Canadian tax dates for insurance companies are based on a December 31 fiscal year end. Deadlines falling on holidays or weekends may be extended to the next business day. (Filing dates for miscellaneous matters affecting insurers in Canada, such as provincial taxes, licences, fees, permits and municipal taxes, are not covered.) Federal tax dates Corporate income tax; Financial institutions capital tax Some Canadian-controlled private corporations All other insurers Life insurer s investment income tax Branch tax Non-resident tax T2016 Transactions with NR4 2 non-residents Related-party transactions: T106 T1135 3, T1141 and T1142 Foreign property reporting T1134 Payments Instalments Balance Last day of each month 1 June 30 n/a March 31 February 28 Returns June 30 March 31 June months after year end Federal excise tax insurance premiums 4 April 30 Insurers not registered for GST that import taxable supplies 1 month after month of importation Financial institution GST/HST annual information return 5 GST111/RC n/a June 30 Provincial tax dates Corporate income tax (Alberta; Quebec) Capital tax Payments Instalments Balance Returns Some Alberta Canadiancontrolled private corporations Last day March 31 All other insurers of each month 1 February 28 June 30 Life insurers in Ontario Same as federal corporate income tax Life insurers in Quebec Same as provincial corporate income tax 1. Canadian-controlled private corporations can pay federal and Quebec instalments quarterly (rather than monthly) if certain conditions are met. 2. The payer in a transaction with a non-resident is required to remit withholding tax on or before the 15th of the month following the month the amount was paid or credited to the non-resident. 3. A simplified foreign asset reporting form is available for certain taxpayers. See page The tax applies to premiums for the insurance of Canadian risks, other than premiums for life insurance, personal accident insurance, sickness insurance or marine insurance. Premiums in respect of reinsurance contracts or for insurance that is not available within Canada are also not subject to the tax. The policyholder is responsible for remitting the tax by April 30 of the year following the calendar year in which the premiums were paid or became payable. 5. Financial institutions that have total income exceeding $1 million and are: GST/HST registrants (but not QST registrants) must file Form GST111 GST/HST and QST registrants must file Form RC7291 A QST registrant (that is not a GST/HST registrant) that meets the criteria must file Form FP-2111-V with Revenu Québec.

12 9 Canadian premium and fire tax Rates and deadlines Rates 1 Premium tax Life, Property and accident and casualty sickness 2% 3 3% 4% 3% 3 4.4% 3% Fire tax 2 Nil Alberta 3 British Columbia % Manitoba 1% New Brunswick Newfoundland Nil 6 and Labrador 3% or 4% 6 NWT & Nunavut 4% 1.25% Nova Scotia Instalments Premium tax If prior year s tax payable exceeds $25,000, 15th of June, September and December Last day of April, July, October and January Last day of June, September and December Deadlines Fire tax Return and balance due 75 days after year end March 31 March 15 Varies 5 March days after end of each quarter March 15 Premium: 60 days after last quarter Fire: March 31 2% 3% or 3.5% 7 Nil Ontario Varies 7 Return: 6 months after year end Balance due: Same as federal income tax (page 8) 3.5% 1% Prince Edward 3 months Last day of each quarter Island after year end 3.48% 8 Nil Quebec Same as provincial income tax (page 8) 3% 4% 1% Saskatchewan 9 2% 2% or 3% 10 Nil 10 Yukon Not required March The rates in the table apply to licensed insurers. Different rates may apply to unlicensed insurers in some jurisdictions. 2. Fire tax rates are levied under Fire Prevention Act or similar legislation of each jurisdiction. For Northwest Territories, Nunavut and Yukon, footnotes 6 and 10 set out rates levied under other legislation relating to fire insurance premiums. 3. Alberta s premium tax rates may increase. See page British Columbia s premium tax rate on property insurance and automobile insurance is 4.4%. A rate of 4% applies to most other types of insurance not referred to in the table. 5. Newfoundland and Labrador s instalment deadlines are shown in the table below. 6. Northwest Territories and Nunavut impose an additional 1% tax on gross premiums in respect of fire insurance. 7. Ontario levies a premium tax rate of 3.5% on property insurance. Ontario s instalment deadlines are shown in the table to the right. 8. Quebec rates include 0.48% compensation tax on insurance premiums. The compensation tax will be 0.3% after March 31, 2017, and nil after March 31, See page 6 for the rates that applied before December 3, 2014, to: the compensation tax on insurance premiums life, accident and sickness premiums 9. Saskatchewan imposes an additional 1% tax on gross premiums in respect of motor vehicle insurance. Its premium tax rate on hail insurance is 3%. 10. Yukon imposes an additional 1% tax on gross premiums in respect of fire insurance and property damage insurance. Not required Not required Newfoundland and Labrador Previous year s tax Instalment deadlines > $1,000,000 20th day of each following month > $500,000 but < $1,000,000 20th of April, July, October and January > $100,000 but < $500,000 20th of July and January < $100,000 Not required Ontario Current or previous year s tax Instalment deadlines > $10,000 a One month after month end b > $2,000 but < $10,000 Three months after quarter end b < $2,000 Not required a. This threshold must be met in both the current and previous year. b. For taxation years that do not end on the last day of a month, instalments are due by the same day of the following month or quarter.

13 10 Sales tax Rates and deadlines Tax Rate Filing conditions Balance and returns Reporting period Due after Default (Registrant) Fiscal year 6 months 2,3 Federal GST 1 5% Fiscal quarter Elected (Registrant) Fiscal month 1 month 2 Alberta No provincial sales tax < $3,000 Fiscal quarter, semi-annual or year Fiscal quarter or Annual > $3,000 to $6,000 British Columbia PST 7% semi-annual 1 month tax Fiscal month or > $6,000 to $12,000 quarter > $12,000 Fiscal month Manitoba PST 8% 4 < $500 Calendar year Monthly $500 to $4,999 Calendar quarter tax > $5,000 Calendar month 20 days New Brunswick Newfoundland and Labrador Northwest Territories HST 13% 5 Same as federal GST No territorial sales tax Nova Scotia HST 15% Same as federal GST Nunavut No territorial sales tax Ontario HST 13% 6 Prince Edward Island HST 14% Same as federal GST Quebec QST 9.975% 7 Same as federal GST Saskatchewan PST 5% < $3,600 Calendar year Annual $3,600 to $7,200 Calendar quarter tax > $7,200 Calendar month 20 days Yukon No territorial sales tax GST = Goods and Services Tax HST = Harmonized Sales Tax PST = Provincial Sales Tax QST = Quebec Sales Tax 1. Instead of the GST, a 5% First Nations Goods and Services Tax (FNGST) applies in certain First Nations. 2. Every registered insurer that is an annual filer and is a: GST/HST (but not a QST) Selected Listed Financial Institution (SLFI), must file Form GST494 GST/HST and QST SLFI (or a QST SLFI but not a GST/HST SLFI), must file Form RC7294 within six months of its fiscal year reporting period Every registered and non-registered* insurer that is a monthly or quarterly filer and is a: GST/HST (but not a QST) SLFI, must file: (i) interim returns on Form GST34 (registered insurers) or Form GST62 (non-registered* insurers) within one month after the end of its reporting period, and (ii) a final return on Form GST494 within six months of its fiscal year GST/HST and QST SLFI (or a QST SLFI but not a GST/HST SLFI), must file: (i) interim returns on Form RC7200 (registered insurers) or Form RC7262 (non-registered* insurers) within one month after the end of its reporting period, and (ii) a final return on Form RC7294 within six months of its fiscal year Every registered insurer that is not a SLFI must file Form GST34 within either six months of its fiscal year reporting period, or one month after the end of its monthly or quarterly reporting period. Every non-registered* insurer that is not a SLFI must file Form GST62 within one month after the end of its monthly reporting period. * Non-registered insurers must have a monthly reporting period. 3. An annual filer is required to make GST/HST and/or QST quarterly instalments (equal to ¼ of net tax ) within one month after the end of each fiscal quarter. Instalments are waived if the net tax (on line 109 of the GST/HST return or line 209 of the QST return) is less than $3, Manitoba also applies an 8% retail sales tax (RST) on certain insurance premiums. Manitoba s PST (which also applies to its RST) will decrease to 7% on July 1, Newfoundland and Labrador s HST rate will increase from 13% to 15% on January 1, Ontario imposes a retail sales tax of 8% on premiums paid by persons carrying on business in Ontario and in respect of property situated in Ontario, excluding insurance of farm property, individual life or health policies, marine insurance, and amounts payable under a reinsurance contract, an annuity contract or to obtain a surety. 7. Quebec also imposes a 9% retail sales tax on: automobile insurance premiums (5% if paid before January 1, 2015) other insurance premiums, with certain exceptions, e.g. individual life and health

14 11 Corporate income tax rates for 2015 The following rates, which have been pro-rated for a December 31, 2015 year end, apply to insurance companies. For Canadian-controlled private property and casualty insurers, lower rates may apply on up to $500,000 of active business income ($425,000 in Manitoba and $350,000 in Nova Scotia). Basic federal rate 38% Provincial abatement -10% General rate reduction -13% Total federal rate 15% Provincial/ Territorial Provincial/Territorial + 15% federal Alberta 11.01% % British Columbia 11% 26% Manitoba 12% 27% New Brunswick 12% 27% Newfoundland and Labrador 14% H 29% Northwest Territories 11.5% 26.5% Nova Scotia 16% 31% Nunavut 12% 27% Ontario % % Prince Edward Island 16% 31% Quebec 11.9% 1 H 26.9% Saskatchewan 12% 27% Yukon 15% 30% H Tax holidays are available to certain corporations. 1. Recent and future income tax changes are outlined on pages 4 to Ontario corporations that, on an associated basis, have gross revenues of $100 million or more and total assets of $50 million or more, may have a corporate minimum tax (CMT) liability based on adjusted book income. CMT is payable to the extent that it exceeds the regular Ontario income tax liability.

15 12 Capital tax rates for 2015 Federal Alberta Part VI financial institutions capital tax 2 On first $1 billion taxable capital On taxable capital > $1 billion 1.25% Life 1 Non-life 1 Nil British Columbia Manitoba New Brunswick No capital tax Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut On taxable capital < $10 million Nil On taxable capital > $10 million and < $50 million 0.625% Ontario 3 On taxable capital > $50 million and < $100 million % and Quebec 4 On taxable capital > $100 million and < $200 million 1.25% On taxable capital > $200 million and < $300 million 0.625% On taxable capital > $300 million % Prince Edward Island Saskatchewan Yukon 1. All rates in this table are for a December 31, 2015 year end. When applying the thresholds, taxable capital of all companies in a group is considered. 2. The federal Part VI tax is reduced by the corporation s federal income tax liability. Any unused federal income tax liability can be applied to reduce the Part VI tax for the previous three years and the next seven. 3. Ontario capital tax may be reduced by the Ontario income tax and corporate minimum tax payable for the year. 4. Quebec capital tax may be reduced by the Quebec income tax payable for the year.

16 13 Publications PwC issues numerous thought-leadership publications, including those listed below, for Canadian and international insurance and financial services industries. Copies can be obtained from our website at or by contacting any of our Canadian insurance industry advisers, listed at the front of this booklet. Insurance Review: A Canadian perspective This periodic publication discusses the challenges and opportunities facing the insurance industry. It is available at To subscribe, please financial.services@ca.pwc.com. Insurance Club EyeOpener Webcast and Breakfast Series This series discusses the key trends affecting insurers on a variety of topics. Webcast series are available at To be part of the quarterly breakfast seminars in Toronto, please financial.services@ca.pwc.com. The insurance industry in 2015 top issues: An annual report This publication discusses the challenges and opportunities confronting insurers and how to adapt to change. Topics include: the central role of advanced analytics in modernizing business models and operations; recent, pending and potential regulatory and insurance taxation developments; market and business developments and operational change. To download it, visit Insurance Banana Skins 2015: The CSFI survey of the risks facing insurers This survey of the leading members of the insurance industry identifies potential sources of risks to the industry and ranks them by severity. It provides insights into the multitude of risks insurers face globally and focuses attention on addressing risk in an organization. It also questions insurers on current risks, future trends and their preparedness to respond to the risk environment. To download a copy, visit

17 14 Insurance Banana Skins 2015: The Canadian results The Insurance Banana Skins survey features 37 responses from Canadian insurers. Regulation, cyber risk, low interest rates, change management and climate change topped the list of concerns for Canada s insurers. For a copy, visit Insurance 2020 & beyond: Equipping your business for the global tax revolution This paper discusses the changing tax landscape and how insurers are re-evaluating their tax functions. Key priorities include: developing and implementing a modernized tax control framework; considering automation of data extraction and review processes; and shifting the focus of tax optimization from reducing to paying an appropriate amount of tax and ensuring that tax policies stand up to current and future scrutiny. It is available at Insurance 2020 & beyond: Necessity is the mother of reinvention This paper reviews the trends reshaping the insurance industry and what the industry will look like by Insurers need to look at how to keep pace with the sweeping social, technological, environmental, economic and political developments ahead. To download a copy, visit Reinsurance 2020: Taking control of your destiny This paper explores the difficulties reinsurers face and sets out various business models that may offer success in this new market landscape. Reinsurers must have a clear focus on cost, risk insight and innovation to break away from competitors. Get a copy at Broking 2020: Leading from the front in a new era of risk This paper looks at the emerging risks that are reshaping the insurance marketplace and what would enable insurance brokers to lead this challenge and come out in front. For a copy, visit

18 Swales and Erinc, Canadian Insurance Taxation, 4th_stacked logo 19/08/ :02 AM Page 1 15 fs viewpoint Threat smart: Building a cyber resilient financial institution This publication discusses cyber risk and how to build a cyber resilient organization. It is available at 18th Annual Global CEO Survey Turning disruption to your advantage: Insurance industry summary PwC s 18th Annual Global CEO Survey finds that insurance CEOs are most likely to see regulation as a source of disruption, creating upheaval and more costs on the one side and diverting attention from other strategic challenges on the other. For the key insurance industry findings, download this publication at Canadian Insurance Taxation (Fourth Edition) coming December 2015 The fourth edition will help insurers identify potential tax problems, make better business decisions and be more effective when discussing these matters with professional advisers. For more information, please contact: your PwC insurance industry adviser ISBN any of our insurance industry advisers listed at When available, a copy can be ordered through LexisNexis Canada Inc. at store.lexisnexis.ca/store/ca. Canadian Insurance Taxation FOURTH EDITION Swales Erinc Canadian Insurance Taxation [ FOURTH EDITION ] Jason Swales Erdem Erinc

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