TORONTO, Jan. 12, 2018 /PRNewswire/ – Sun Life Financial Inc. (TSX:SLF) (NYSE: SLF) (Sun Life Financial) today announced the estimated impact of U.S. corporate tax reform on the Company. Under the Tax Cuts and Jobs Act, which took effect January 1, 2018, the U.S. corporate tax rate was reduced to 21% from the previous rate of 35%. As a result of this legislation, the Company expects the tax expense included in its 2018 underlying net income to decrease by approximately $130 million.
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 February 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.
Cautionary Language Regarding Forward-Looking Information
From time to time, the Company makes written or oral forward-looking statements, including in this document. All such statements are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document relate to: (i) the expected impact of U.S. corporate tax reform on the Company’s tax expense included in its 2018 underlying net income, and (ii) the expected charge to reported net income related to U.S. tax reform in the fourth quarter of 2017. These statements represent our current expectations, estimates, and projections regarding future events and are not historical facts. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict.
Important risk factors that could cause our assumptions and estimates, and expectations and projections to be inaccurate and our actual results or events to differ materially from those expressed in or implied by the forward-looking statements contained in this document, include but are not limited to, the interpretation of the U.S. tax reform legislation by tax authorities, and the risk factors that are set out in SLF Inc.’s 2016 AIF under the heading Risk Factors and the factors detailed in SLF Inc.’s other filings with Canadian and U.S. securities regulators, which are available for review at www.sedar.com and www.sec.gov, respectively, and include the factors summarized below. The realization of our forward-looking statements, essentially