Dear RCCAQ members:

Last December, the RCCAQ, the Insurance Bureau of Canada (IBC) and insurance industry representatives made various representations aimed at briefing the finance minister on the impacts of raising the tax on auto insurance premiums.

Quebec's finance ministry recently issued an information bulletin in this regard, which included the following clarification:

To facilitate the transition for persons required to collect the tax who have a amonthly reporting period, an additional period of one month was granted for their remittance to Revenu Québec of the amounts of tax to be collected on automobile insurance premiums paid in January 2015.

However, it has emerged that this transitional easing measure will not give persons offering automobile insurance who have a monthly reporting period enough time to make the required changes to their systems without having to bear the tax increase while the changes are being made.

Consequently, this measure will be changed so that these mandataries have the option of postponing to June 30, 2015 the collection of amounts attributable to the 4% tax increase applicable to premiums paid to them as of January 1, 2015. The mandataries will therefore have until July 31, 2015 to remit to Revenu Québec these amounts regarding premiums paid from January 1, 2015 to June 30, 2015. (Source : Bulletin d’information 2014-12, Finance Québec)

This announcement applies to all those involved in selling auto insurance products (brokers as well as direct insurers).

If you have any questions concerning your brokerage firm, please contact your accountant to determine the procedure that applies to your situation.

If you have any concerns, please feel free to contact us by email ().

Vincent Gaudreau, CIB, FCIP, CRM
Insurance Broker & RCCAQ Chair