P-15 — Premium Tax Act

s. 1 — Definitions

In this Act 1957, c.14, s.1; 1991, c.36, s.1; 1992, c.52, s.25; 2005, c.20, s.3; 2013, c.31, s.28; 2019, c.29, s.122

s. 1 — financial-and-consumer-services-commission

“Financial and Consumer Services Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission des services financiers et des services aux consommateurs)

s. 1 — insurance-company

“insurance company” means a person or corporation carrying on business in the Province within the meaning of the Insurance Act, and includes a reciprocal or inter-insurance exchange and underwriters and syndicates of underwriters operating on the plan known as “Lloyds”, but does not include(compagnie d’assurance)

s. 1(a) — Definitions

(a) a fraternal society as defined in the Insurance Act, or

s. 1(b) — Definitions

(b) a mutual insurance corporation as defined in the Insurance Act in respect of any taxation year in which the net premium income in the Province of such corporation is to the extent of not less than fifty per cent thereof derived from the insurance of farm property or wholly derived from the insurance of churches, schools or other religious, educational or charitable institutions, or

s. 1(c) — Definitions

(c) Repealed: 1991, c.36, s.1

s. 1 — marine-insurance

“marine insurance” means insurance against losses described in subsection 6(1) of the Marine Insurance Act (Canada);(assurance maritime)

s. 1 — minister

“Minister” means the Minister of Finance and Treasury Board and includes any person designated by the Minister to act on the Minister’s behalf;(ministre)

s. 1 — superintendent

“Superintendent” means the Superintendent of Insurance appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Financial and Consumer Services Commission or the Superintendent to act on the Superintendent’s behalf;(surintendant)

s. 1 — taxation-year

“taxation year” means a calendar year in which premiums are receivable in respect of business transacted in the Province.(année d’imposition)

s. 2 — Taxation of premium

1957, c.14, s.2; 1966, c.88, s.1; 1979, c.57, s.1, 2; 1981, c.62, s.1; 1984, c.55, s.1; 1991, c.36, s.2; 2013, c.31, s.28

s. 2(1) — Taxation of premium

Every insurance company shall pay to the Minister for provincial purposes a tax equal to

s. 2(1)(a) — Taxation of premium

(a) two per cent of the gross premiums that become payable, under contracts of accident insurance, life insurance and sickness insurance; and

s. 2(1)(b) — Taxation of premium

(b) three per cent of the gross premiums that become payable, under any other contract of insurance,

s. 2(1)(c) — Taxation of premium

(c) an amount equal to cash value of dividends paid or credited to policyholders, and

s. 2(1)(d) — Taxation of premium

(d) an amount equal to premiums returned.

s. 2(2) — Taxation of premium

For the purpose of subsection (1), business transacted in the Province means

s. 2(2)(a) — Taxation of premium

(a) in the case of property insurance, all contracts on which premiums are receivable from, or in respect of, persons whose property was situated in the Province at the time their premiums became payable, and

s. 2(2)(b) — Taxation of premium

(b) in the case of other insurance, all contracts on which premiums are receivable from, or in respect of, persons who were resident in the Province at the time their premiums became payable.

s. 2(3) — Taxation of premium

This section does not apply to premiums receivable in respect of

s. 2(3)(a) — Taxation of premium

(a) contracts of marine insurance, or

s. 2(3)(b) — Taxation of premium

(b) Repealed: 1991, c.36, s.2

s. 2(4) — Taxation of premium

For the purposes of subsection (1), “accident insurance”, “life insurance” and “sickness insurance” have the respective meanings given to those expressions by section 1 of the Insurance Act.

s. 2(5) — Taxation of premium

Repealed: 1991, c.36, s.2

s. 3 — Filing of tax return

1957, c.14, s.3; 1966, c.88, s.2; 1976, c.14, s.1; 2013, c.31, s.28

s. 3(1) — Filing of tax return

Every insurance company liable to pay a tax under section 2 shall remit to the Minister

s. 3(1)(a) — Filing of tax return

(a) on or before each June 30, September 30 and December 31 of the taxation year, an amount equal to one-quarter of the tax paid for the year preceding the taxation year, and

s. 3(1)(b) — Filing of tax return

(b) on or before March 15 in the year following the taxation year, the balance, if any, of the amount payable by it in respect of that taxation year.

s. 3(2) — Filing of tax return

On or before March 15 in the year following the taxation year, an insurance company referred to in subsection (1) shall file with the Minister and the Superintendent a return on a form provided by the Superintendent showing the amount of tax payable by it in respect of that taxation year.

s. 3(3) — Filing of tax return

If the payments made by an insurance company under subsection (1) exceed the amount of tax it is liable to pay under section 2, the Minister shall refund the excess amount paid within 30 days following receipt of the return required by subsection (2).

s. 4 — Application of The Corporations Tax Act

Section 24A of Chapter 18 of 2 George VI, 1938, The Corporations Tax Act, as enacted by Chapter 9 of 4 George VI, 1940, and sections 26, 27, 32, 33, 34, 35, 36 as amended by Chapter 9 of 4 George VI, 1940, and sections 37, 38, 39, 40, 41, 42 and 43 of the said The Corporations Tax Act apply, mutatis mutandis, with respect to a person or corporation liable to pay a tax under this Act and to the tax payable under this Act as if the provisions thereof were enacted in and formed part of this Act. 1957, c.14, s.4

s. 5 — Administration

The Minister is responsible for the administration of this Act and may designate one or more persons to act on the Minister’s behalf. 2013, c.31, s.28

s. 6 — Disclosure of information by the Superintendent

The Superintendent may disclose to the Minister the information necessary for the administration of the Act, including the information necessary for the following purposes: 2013, c.31, s.28

s. 6(a) — Disclosure of information by the Superintendent

(a) to determine whether an insurance company is required to pay the tax under subsection 2(1);

s. 6(b) — Disclosure of information by the Superintendent

(b) to determine the amount of tax payable under subsection 2(1); and

s. 6(c) — Disclosure of information by the Superintendent

(c) to verify the information included in a return filed under subsection 3(2).