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

Sept. 22, 2022, 1:46 PM

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 ...