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Sun Life Financial Expects $200 Mln Charge To Q4 Net Income On U.s. Tax Reform

Sun Life Financial Inc. (SLF,SLF.TO) said that as a result of the recent U.S. tax legislation, it expects the tax expense included in its 2018 underlying net income to decrease by approximately $130 million and also expects to incur a charge of $200 million to its net income in the fourth quarter.

Under the Tax Cuts and Jobs Act, which took effect January 1, 2018, the U.S. corporate tax rate was reduced to 21 percent from the previous rate of 35 percent.

Sun Life Financial expects to take a charge to reported net income of about $200 million related to the U.S. tax reform when it 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.

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