First

Session, 48th General Assembly

Elizabeth II, 2016

BILL 21

AN ACT TO AMEND THE

REVENUE ADMINISTRATION ACT NO. 4

Received and Read the First Time .................................................................................................

Second Reading .................................................................................................................................

Committee ..........................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

CATHY BENNETT

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Revenue Administration Act to provide

for an increase in tax on insurance companies.

A BILL

AN ACT TO AMEND THE REVENUE ADMINISTRATION

ACT NO. 4

Analysis

S.78 Amdt.

Imposition of tax

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cR-15.01

as amended

1. Subsections 78(1) and (2) of the Revenue Administration Act are repealed

and the following substituted:

Imposition of tax

(1) A

company shall pay to the minister for the use of the province, a tax equal to

5% of the gross premiums that become payable to it during the year in respect

of business transacted by it in the province, other than premiums in respect of

reinsurance ceded to the company by other companies and premiums or other

consideration becoming payable to the company in respect of annuities, after deducting

from those gross premiums a sum equal to

(

a) the cash value of dividends paid or credited

to policyholders in that year; and

(

b) the premiums returned by the company in that

year.

(2) Notwithstanding subsection (1), a company

which administers a contract of insurance under an administrative services only

plan or any other financial arrangement, shall pay a tax equal to 5% of the

value of benefits paid out of the plan as well as any dues, assessments, and

administrative costs or fees charged to the plan holder, policy or program of

insurance.

Commencement

2. This Act comes into force on July 1, 2016.

Queen's Printer