Ryan Tax Alert - Newfoundland and Labrador Tax on Insurance

While an official date for tabling the 2008 Newfoundland and Labrador Budget has yet to be released, Premier Danny Williams announced today that his government will eliminate the province’s 15 per cent retail sales tax on insurance premiums. This change, effective immediately, will be retroactive to January 1, 2008. Consequently, insurers will be required to refund any tax collected on new contracts and renewals purchased on or after January 1, 2008 and then apply to the Department of Finance to recover amounts refunded. No refunds will be available on policies purchased or renewed prior to the effective date of the change. This move is in keeping with the government’s commitment to return money to taxpayers as the province’s fiscal position improves.

Further information on the elimination of Newfoundland and Labrador’s tax on insurance premiums may be found on the province’s web site at:
http://www.releases.gov.nl.ca/releases/2008/exec/0422n09.htm

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