Some businesses must self-assess a 50% tax on certain insurance premiums for risks in Alberta.
This requirement which may surprise these businesses applies on premiums covered under insurance contracts with insurers that are not licensed in the province. Businesses must generally self-assess and remit this special tax to the Alberta government within 30 days after signing such a contract or receiving any policy, interim receipt or insuring document, whichever occurs first. If the tax is not paid on time, an additional penalty could bring the total cost to 75% of the premium.
Download this edition of the TaxNewsFlash to learn more.