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Flaherty clarifies financial services tax policy     (Copyright Thompson’s World Insurance News     Federal Minister of Finance Jim Flaherty said the government has no intention of changing tax policy for financial service providers.     In a statement late last month he said a recent Canada Revenue Agency notice was issued only to address uncertainty arising from certain court decisions.     “Businesses need clear GST rules,” Mr. Flaherty said.     “The proposed changes contained in the Notice of Ways and Means Motion tabled in the House of Commons on March 22, 2010 are designed to confirm our long standing policy intent and restore the situation that existed prior to the court decisions. We are not imposing new taxes.”     The notice had caused alarm across the entire sector as it appeared to imply there was a potential $1bn tax hit for financial service advisers.     The CRA has also decided to redefine what financial services are subject to the incoming HST in Ontario and B.C .     But brokers do not see any reason for alarm from their perspective.     Insurance Brokers Association of Ontario ceo Randy Carroll said. “It’s our opinion that broker commission will remain exempt. The insurance product is a non-taxable product under the HST.”     More in our April 5, 2010 edition        Thompson’s World Insurance News P.O. Box 1027,  Waterloo, Ontario,  Canada  N2J 4S1 Tel: 519-579-2500 Fax: 519-745-7321 mpub@sympatico.ca THOMPSON’S WORLD INSURANCE NEWS , Canada’s only independent weekly for p&c insurance professionals, has been the industry’s most trusted news source since 1988.