Description: The latest federal government budget has announced a new 15% tax on bank profits over $1 billion. The way the government sees it, banks have done exceptionally well during the pandemic, a time when various federal programs assisted the economy. This special Canada Recovery Dividend could raise approximately $4 billion in government revenue, and it has drawn the ire of Brian Porter, the CEO of Scotiabank, who feels the move broadcasts the “wrong message to the global investment community.”
Date: April 7, 2022
1) Have you or your classmates discussed any aspects of the latest federal budget? What stood out?
2) Do you support this special taxation initiative on banks and insurance companies? Why or why not?
3) On page 12-1 in Wiley’s Financial Accounting: Tools for Business Decision-Making we see a chapter-opening vignette on Scotiabank, also known as the Bank of Nova Scotia. Do a search for the Bank of Nova Scotia’s 2021 financial statements. Did Scotiabank make over the $1 billion figure mentioned in the budget?