Tax Amendment

Non-residents who wish to implement a risk management program involving the use of captive insurance companies to insure property situated, or events occurring outside of Canada should now consider British Columbia as a comparable domicile for their captive insurance company.

Effective April 1, 1998, amendments were made to the International Financial Business (Tax Refund) Act that allow British Columbia captives who insure prescribed risks of non-residents of Canada relating to property situated or events occurring outside of Canada, relief from income taxes payable to the Province of British Columbia. This reduces the effective income tax rate to 29.12%.