The Globe and Mail reports in its Tuesday, May 16, edition that Intact Financial says a proposed tax measure in this year's federal budget would likely have negative consequences for insurers, their customers and companies seeking to raise money in the capital markets. The Globe's Clare O'Hara writes that the federal government's March budget proposed an amendment to the tax treatment of share dividends that banks and insurers receive from Canadian companies. Currently, dividends received from shares of a Canadian company, including both common and preferred shares, are tax-exempt. That means they are excluded from business income, providing a significant after-tax benefit. Now, Ottawa wants financial institutions to record those dividends as business income -- a move that could raise costs for insurers who hold a large portion of preferred shares and make it harder for public companies to raise new money by issuing preferred shares. Chief financial officer Louis Marcotte says Intact has been a significant investor in Canadian dividend-generating securities for decades, and is encouraging the government to "consult widely" on the proposed change to ensure it is supporting its "local market champions."