Taxation of premium
2(1)Every insurance company shall pay to the Minister for provincial purposes a tax equal to
(a)
two per cent of the gross premiums that become payable, under contracts of accident insurance, life insurance and sickness insurance; and
(b)
three per cent of the gross premiums that become payable, under any other contract of insurance,
to the corporation or its agent or agents during the taxation year in respect of business transacted by it in the Province, other than premiums in respect of re-insurance ceded to it by other insurance companies licensed to transact business in the Province, and considerations for annuities, after deducting from such gross premiums
(c)
an amount equal to cash value of dividends paid or credited to policyholders, and
(d)
an amount equal to premiums returned.
2(2)For the purpose of subsection (1), business transacted in the Province means
(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
(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.
2(3)This section does not apply to premiums receivable in respect of
(a)
contracts of marine insurance, or
(b)
Repealed: 1991, c.36, s.2
2(4)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.
2(5)Repealed: 1991, c.36, s.2 1957, c.14, s.2; 1966, c.88, s.1; 1979, c.57, s.1, 2; 1981, c.62, s.1; 1984, c.55, s.1; 1991, c.36, s.2; 2013, c.31, s.28