Capital tax levied on financial institutions, whether federal or provincial, represent an insidious risk to a life insurer’s effective tax rate. Capital taxes represent a floor on permanent deductions from income tax and restrict tax value from planning opportunities. More dramatically however, is the looming existential threat of significant deferred tax asset write-offs where capital tax prevents a reasonable forecast for utilization. This session will cover briefly the history of capital tax, current application by federal and provincial authorities, the major components driving capital tax liability, and past and present considerations for managing capital tax exposure.