Toronto-based Sun Life Financial Inc. says it will take a $200-million charge related to U.S. tax reform when it reports its fourth-quarter (Q4) results.<\/p>\n
The company says the one-time hit is due to the impact of the tax changes on actuarial liabilities, deferred tax assets and liabilities and a one-time tax charge on deemed repatriation of foreign earnings.<\/p>\n
Late last year, the U.S. cut its corporate income tax rate to 21%, from 35%, as part of an overhaul of its tax laws.<\/p>\n
The move is expected to lift future earnings, but it also reduced the value of deferred tax assets held on company balance sheets, prompting firms to recognize one-time charges related to the change.<\/p>\n
Sun Life estimates that it expects the lower tax rate in the U.S. will mean that the tax expense included in its 2018 underlying net income will fall by approximately $130 million.<\/p>\n
The company is expected to report its Q4 results on Feb. 14.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
The one-time charge is due to U.S. corporate tax changes<\/p>\n","protected":false},"author":38954,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2318],"tags":[2319],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/341209"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=341209"}],"version-history":[{"count":1,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/341209\/revisions"}],"predecessor-version":[{"id":365164,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/341209\/revisions\/365164"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=341209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=341209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=341209"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=341209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}