Sun Life Financial Inc. announced Jan. 12 the estimated impact of U.S. corporate tax reform on the Company.
Under the Tax Cuts and Jobs Act, which took effect Jan. 1, the U.S. corporate tax rate was reduced to 21 per cent from the previous rate of 35 per cent. As a result, the company expects the tax expense included in its 2018 underlying net income to decrease by approximately $130 million.
$200 million charge on net income
Sun Life Financial also expects to take a charge to reported net income of approximately $200 million related to U.S. tax reform when the company reports its fourth quarter results on Feb. 14, 2018.
The expected charge reflects the net impact of U.S. corporate tax reform on actuarial liabilities, deferred tax assets and deferred tax liabilities and a one-time tax charge on deemed repatriation of foreign earnings.