Tax Implications of International Accounting Rules for Insurance Contracts (IFRS 17)
Current Status: Closed
On January 1, 2023, new international accounting rules for insurance contracts – known as International Financial Reporting Standards (IFRS) 17 – will come into effect.
IFRS 17 aims to improve the financial reporting of insurance contracts by mandating a consistent framework across countries, industries and types of insurance contracts. It also aims to provide more transparent and useful information about the value of insurance obligations and the profitability of insurance contracts.
This consultation gave stakeholders an opportunity to provide feedback on the government's intention to maintain the current alignment between the taxation of profits and the timing of income earning activities. It also served as an opportunity for stakeholders to share their views on how to best enact the new standard in a way that facilitates implementation by insurance companies and that is auditable by the Canada Revenue Agency. The consultation ran from May 28, 2021 to July 30, 2021. Thank you to everyone who participated.
Departmental officials will analyze the feedback received through this consultation to help inform potential modifications to the Income Tax Act and other administrative tools.
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