Finance recently announced that it is seeking input from industry stakeholders, including life and property and casualty (P&C) insurers on how best to enact tax legislative changes to address the international accounting rules for insurance contracts that are scheduled to become effective in 2023. Specifically, Finance is asking for comments on how it can maintain the current alignment between the taxation of profits and the timing of income earning activities, as well as any other potential taxation issues that could arise as the new accounting standard, known as IFRS 17, is implemented.

Finance states that this consultation, which ends on July 30, 2021, is intended to help inform potential legislative changes to the Income Tax Act and other administrative tools to accommodate this upcoming change.

Download this edition of the TaxNewsFlash to learn more.