New Brunswick and Newfoundland and Labrador Hike HST to 15%

Effective July 1, 2016, the Provinces of New Brunswick and Newfoundland and Labrador will increase their harmonized sales tax (HST) by two percentage points to 15 per cent.

In accordance with this increase of HST rates, we wish to advise our brokers that the final bond amounts and premium calculations should be on the basis of the contract price inclusive of 15% HST for all bonds with an issuance date on and/or after July 1, 2016. Where the contract value stated is exclusive of HST, please add 15% to the contract price when calculating the bond premiums.

Any overrun, underrun, and anniversary premiums relating to bonds issued prior to July 1, 2016 will be calculated by applying the 15% rate.

We thank you for implementing these changes. If you have any questions, concerns or comments, please contact your local underwriter.

 

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