Principal Issues: Taxability of lump sum settlement payment of future disability benefits.
Position: Where an individual receives a lump sum payment in lieu of future benefits that would have been otherwise paid under an employer LTD plan, in circumstances such that the payment can reasonably be considered to be proceeds of disposition of an interest in an insurance policy in accordance with subparagraph 39(1)(a)(iii) of the Act, the proceeds are not taxable under paragraph 6(1)(f) of the Act.
Reasons: Jurisprudence; Subparagraph 39(1)(a)(iii).