Bloomberg Tax
Sept. 22, 2022, 1:46 PM

Banks, Insurers Face $3.9 Billion Hit From Trudeau’s New Taxes

Kevin Orland
Kevin Orland
Bloomberg News

Two new taxes on banks and insurers that Prime Minister Justin Trudeau proposed during last year’s Canadian election campaign will cost firms about C$5.27 billion ($3.92 billion) over five years, less than previously projected, according to a government analysis.

The Canada Recovery Dividend -- a one-time, 15% tax on domestically-generated profits over C$1 billion in the past two years -- is expected to raise C$3.02 billion in government revenue, the Parliamentary Budget Officer said Thursday.

The other tax hike -- a 1.5-percentage-point increase to the corporate rate paid on banks and life insurers’ income over C$100 million -- will raise ...