Financial institutions — Account for new taxes now

Canadian financial institutions should determine how to account for recently enacted tax changes in their financial statements prepared in accordance with IFRS Accounting Standards. In particular, corporations that are banks, life insurers or related financial institutions will have to ensure their financial statements properly reflect the new one-time 15% Canada Recovery Dividend tax and an additional 1.5% income tax on taxable income in excess of $100 million. The tax effect of these measures, which were included in Bill C-32, must be recognized in the period that includes December 8, 2022 (i.e., the date the bill was substantively enacted).

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