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New tax laws, passed into law in mid-2010 and only now nearing enforcement, could require life and personal and commercial insurers to pay GST/HST tax on reinsurance arrangements with related businesses in other countries. The changes would be retroactive to 2005, and could cost the industry hundreds of millions of dollars.
New tax laws, passed into law in mid-2010 and only now nearing enforcement, could require life and personal and commercial insurers to pay GST/HST tax on reinsurance arrangements with related businesses in other countries. The changes would be retroactive to 2005, and could cost the industry hundreds of millions of dollars.
(JONATHAN HAYWARD/THE CANADIAN PRESS)

Insurers brace for tax changes

The insurance industry wants more details on changes to federal rules that could impose hundreds of millions of dollars in back taxes and change their relationships with foreign parent companies.

The changes, passed into law in mid-2010 and only now nearing enforcement, could require life and personal and commercial insurers to pay GST/HST tax on reinsurance arrangements with related businesses in other countries.