### ⚖️ Constitutional Concern Over New Insurance Tax Rules

A legal debate has emerged regarding the proposed amendments to the Inland Revenue Act published on 24 February 2026. The bill aims to align taxation with the new IFRS 17 accounting standards but faces criticism for potentially bypassing Parliamentary authority. Key Issues & Legal Risks • Delegation of Power: The bill empowers the Commissioner-General of Inland Revenue (CGIR) to set tax rules for the insurance sector. Critics argue this violates Article 148 of the Constitution, which mandates that only Parliament holds full control over public finance. • Global Precedents: The concerns mirror a February 2024 US Supreme Court ruling (Learning Resources, Inc. v. Trump) which struck down executive tariffs, asserting that taxing power belongs exclusively to elected legislatures. • Impact on Insurance: IFRS 17 fundamentally changes how profits and liabilities are reported. Without clear primary legislation, the sector faces "taxation by regulation," leading to potential double taxation or arbitrary financial shifts. Industry & Economic Context • Insurance firms are currently transitioning from IFRS 4 to IFRS 17, a move that impacts reported revenue and "contractual service margins" (locked-in profits). • Constitutional Window: Stakeholders have a 14-day window (following the 17 March 2026 tabling) to challenge the bill in the Supreme Court. • Proposed Solutions: Experts suggest a Parliamentary Select Committee or direct legislative amendments—similar to models used in the UK and Australia—to ensure transparency and investor confidence. _Summary based on provisional legal analysis and gazetted bill details._ ---