Canada Recovery Dividend
The Canada Recovery Dividend is a one-time tax on banking and life insurance groups. The amount payable is calculated as 15% of the average Canadian-based taxable income over 2020 and 2021 minus a 1 billion deduction. It will be imposed for the 2022 taxation year and will be paid in equal installments over five years.
It is to be noted that this definition follows what is laid out in the draft legislation and differs from what was published in Budget 2022. The initially proposed tax base for this measure was the 2021 Canadian-based taxable income instead of the two-year average.
The PBO estimates the total revenue from the corporate surtax of financial institutions to be $3.0 billion.