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Statutes of Newfoundland and Labrador 2016
AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 4
(Assented to June 7, 2016)
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 Subsections 78(1) and (2) of the Revenue Administration Act are repealed and the following substituted: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
78. (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.
2. This Act comes into force on July 1, 2016.