Issue link: http://clhia.uberflip.com/i/878840
18 Total tax contributions Canadian life and health insurers contributed almost $7.3 billion in taxes to Canadian federal, provincial and local governments in 2016. Of this, $4 billion was borne by the industry, and a further $3.3 billion was collected and paid as provincial sales taxes on life and health insurance products and as employees' share of payroll taxes. Corporate income taxes (which are based on earnings) accounted for over a quarter of total taxes borne by the industry in 2016. The remainder (about three quarters) is made up of taxes that are not dependent on earnings, such as insurance premium taxes, sales taxes and capital taxes. Capital tax levied on regulatory capital increases the cost of maintaining or increasing capital that ensures the safety and security of financial institutions and their consumers. Canada is the only major country in the world with a capital tax on financial institutions. The industry's 2016 total tax contribution to all levels of governments in Canada was twice its corresponding share of Canada's GDP $7.3B 2016 Distribution of total tax contributions ($millions) Federal Provincial Total Taxes borne Corporate income taxes 610 486 1,096 28% Federal capital taxes 290 290 7% Insurance premium taxes 1,433 1,433 36% Payroll taxes (employers') 140 171 311 8% GST/HST 131 171 302 8% Investment income taxes 121 121 3% Property/business taxes 33 379 412 10% Total taxes borne 1,325 2,640 3,965 100% Taxes collected Sales taxes on premiums 2,332 2,332 Payroll taxes (employees') 994 994 Total taxes collected 994 2,332 3,326 Total tax contributions 2,319 4,972 7,291 Taxes borne are taxes paid by insurers directly to governments Taxes collected are amounts collected from insurers' customers and employees and paid over to governments on their behalf