Canada: Comments requested on implications for insurance company accounting standards

Insurance companies may want to consider providing feedback on potential tax changes.

Insurance companies may want to consider providing feedback on potential tax changes.

The Department of 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 has requested comments regarding 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 tax issues that could arise as the new accounting standard (known as IFRS 17) is implemented.

The consultation ends 30 July 2021.
 

Read a June 2021 report [PDF 180 KB] prepared by the KPMG member firm in Canada 

 

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