Canada: Provisions in 2022 federal budget concerning financial services sector

Measures that may have important implications for financial institutions (including banks and insurance companies)

Measures that may have important implications for financial institutions

Companies in the financial services industry may be affected by measures proposed in the 2022 federal budget.

Read a report providing an overview of the tax measures in the federal budget: TaxNewsFlash  

Provisions in 2022 federal budget for the financial services sector

The budget introduces several measures that may have important implications for financial institutions (including banks and insurance companies) such as:

  • The “Canada recovery dividend” and an additional tax on banks and life insurers
  • Hedging and short-selling by Canadian financial institutions
  • International Financial Reporting Standards for Insurance Contracts (IFRS 17)
  • Pillar Two (a global minimum tax)
  • Reporting requirements for registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs)

In addition, asset management companies need to consider if or how 2022 federal budget measures concerning the following items may affect them:

  • Housing and real estate investment trusts
  • Green innovations and incentives
  • Critical mineral exploration tax credit
  • Eliminating flow-through shares for oil, gas, and coal activities

Read an April 2022 report [PDF 271 KB] prepared by the KPMG member firm in Canada

 

 

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