Cases
Tsiaprailis v. Canada, 2005 DTC 5119, 2005 SCC 8, [2005] 1 S.C.R. 113
The taxpayer received a lump sum payment of $105,000 in settlement of her claim for wrongful termination of her long-term disability benefits....
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| Tax Topics - Income Tax Act - Section 68 | general authority to allocate global amounts without reference to s. 68 | 54 |
Leonard v. The Queen, 96 DTC 6518, [1996] 3 CTC 265 (FCTD)
The collective agreement between the taxpayer's union and his employer called upon the employer to pay premiums to an insurance company for weekly...
Dagenais v. The Queen, 95 DTC 5318, [1995] 2 CTC 100 (FCTD)
The taxpayer, who was a member of a trade union that had negotiated short-term weekly indemnity benefits and long-term disability benefits with...
See Also
Eyckelhoff v. The Queen, 2020 TCC 130 (Informal Procedure)
The taxpayer, a Canadian resident, received periodic payments from a Netherlands insurance company (“Aegon”) which she submitted were exempt...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | foreign policy generated taxable pension given failure to establish that it was a taxpayer-funded disability policy | 242 |
Watts v. The Queen, 2004 DTC 3111, 2004 TCC 535 (Informal Procedure)
Periodic disability payments received by the taxpayer under the Canada Pension Plan were not received in respect of a "disability insurance plan"...
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| Tax Topics - Income Tax Act - Section 118.94 | 39 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) | 77 |
Harnish v. The Queen, 2007 DTC 1317, 2007 TCC 546 (Informal Procedure)
Periodic payments received by the taxpayer under a long-term disability plan were income to him withstanding that he signed a subrogation...
Fry v. The Queen, 2001 DTC 846 (TCC)
A lump-sum received by the taxpayer in settling a claim against her employer's group disability insurer in respect of a motor vehicle accident was...
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| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 52 |
Cook v. The Queen, 95 DTC 853, [1995] 1 CTC 2251 (TCC)
A lump sum received by the taxpayer in settlement of an action that she had brought against Great-West Life Insurance Company for its denial of...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 97 |
Administrative Policy
2019 Ruling 2018-0757561R3 - Payment in lieu of continued WLRP payments
Background
Parentco (a taxable Canadian corporation) filed for and obtained protection under the CCAA (or Bankruptcy and Insolvency Act) by order...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(b) | residual payments out of a disability trust were employment income | 133 |
S2-F1-C1 - Health and Welfare Trusts
Employee contributions
1.38 Amounts included in income under paragraph 6(1)(f) may be reduced by the total amount of any contributions made by the...
Employee contributions
1.38
Amounts included in income under paragraph 6(1)(f) may be reduced by the total amount of any contributions made by the employee to the...
8 July 2013 Internal T.I. 2012-0470021I7 - Settlement of Future Benefits ASO Plan
CRA noted that an employer's group disability plan which was administered by an administrator (such as an insurance corporation) on an...
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| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(ii) | 244 |
12 February 2013 Internal T.I. 2013-0475631I7 - Treatment of Settlement Amounts
It is contemplated that a lump sum would be paid to the individual plaintiffs in a class action suit in settlement of their allegation that...
23 March 2009 External T.I. 2008-0293131E5 F - Prestations reçues par une succession
An individual who had been receiving long-term disability benefits after an illness had prevented continuation of the individual’s employment,...
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| Tax Topics - Income Tax Act - Section 70 - Subsection 70(2) | amounts received by estate in settlement of deceased’s action for unpaid disability were rights and things | 199 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit | survivor benefit in settlement of rights under a wage loss replacement plan could be a death benefit | 143 |
3 November 2008 External T.I. 2008-0289701E5 F - Paiement fait à la succession d'un employé
Following an employee's death, the employer was incorrectly of the opinion that the estate could not make a claim against the insurer under an...
24 August 2007 External T.I. 2006-0215691E5 F - Ristourne d'un régime d'assurance collective
A government Ministry is the policyholder for the group insurance plan for the staff at Quebec daycare centres who pay the premiums, If the...
27 March 2007 External T.I. 2006-0217511E5 F - Régime d'assurance collective
After indicating that payment by employer of all rather than half the premiums for a group insurance plan would not oust the exclusion in s....
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | payment by employer of all rather than half the premiums for a group insurance plan would not oust the exclusion | 137 |
22 November 2006 External T.I. 2006-0189441E5 - Change to employer paid disability plan
Where an employee-pay-all disability plan becomes a plan in which the employer makes 100% of the contributions, an employee in receipt of benefits...
9 May 2006 Internal T.I. 2006-0175551I7 F - Traitement fiscal d'un montant forfaitaire
A member of the Canadian armed forces who had been injured and in receipt of disability benefits from the Department of Veterans Affairs and the...
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| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) | lump sum received in settlement of entitlement to future disability benefits was non-taxable s. 39(1)(a)(iii) receipt | 62 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(15) | forgiveness of rehabilitation loan was taxable | 85 |
30 January 2006 External T.I. 2005-0159331E5 - Long term disability lump sum payments
In response to a query as to CRA’s position regarding the taxability of lump sum payments of long-term disability benefits that do not represent...
9 June 2005 External T.I. 2004-0097451E5 F - Régimes d'assurances collectives
The employer undertakes to pay the full premium for a so-called taxable short-term and long-term disability insurance, providing a certain level...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | employees can potentially pay top-up amounts for further benefits or receive taxable compensation for opting for lower benefits | 175 |
29 November 2004 External T.I. 2004-0080891E5 F - Régime d'assurance invalidité
Under a group disability insurance plan, the cost of contributions was allocated as:
- Life, accidental death and dismemberment insurance:...
8 October 2004 APFF Roundtable Q. 11, 2004-0090791C6 F - Maladies graves et soins de longue durée
Regarding the availability of the s. 6(1)(f) exclusion regarding payments received pursuant to individual long-term care policies (without a...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | premiums for critical illness policies and individual long-term care policies for senior employees are deductible | 106 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | sickness plan can comprise individual critical illness policies | 128 |
29 October 2003 External T.I. 2003-0006505 F - REGIME D'ASSURANCE SALAIRE
Various wage-loss replacement plan were modified. CCRA noted that where there was not a new plan, then it would be possible for individuals who...
16 August 2002 Internal T.I. 2002-0156577 F - ASSURANCE - INVALIDITE - PARITE
In finding that a taxpayer could deduct contributions made to a disability insurance plan between 1990 and 2001 from an equalization adjustment...
31 July 2002 External T.I. 2002-0145335 - WAGE LOSS REPLACEMENT PLAN - TAX STATUS
For a disability insurance plan to be an employee-pay-all plan, the employees must be legally responsible for paying all the premiums,...
11 July 2002 External T.I. 2002-0131085 F - ASSURANCE INVALIDITE
In the course of a general discussion as to whether a disability insurance plan was an employee-pay-all plan, so that any benefits received by the...
25 July 2002 Internal T.I. 2002-0139877 F - ASSURANCE INVALIDITE-PARITE
In finding that a taxpayer could deduct contributions made to a disability insurance plan between 1989 and 2001 from a parity adjustment received...
20 March 2002 External T.I. 2001-0113815 F - TVQ SUR PRIMES D'ASSURANCE - SALAIRE
Would the benefits under a wage-loss insurance plan whose premiums are paid in full by the employees remain non-taxable where the employer pays...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | employee would not be credited with a contribution on paying Quebec sales tax on wage loss plan premiums/ the employer paying them would not be a contribution | 59 |
3 November 2000 External T.I. 2000-0050685 - LTDP IS AN EMPLOYEE-PAY-ALL PLAN
The existence of an employee-paid-all plan is not determined by looking at the manner in which payments are made or reported, but rather is...
5 July 1995 External T.I. 9507035 - DISABILITY PLANS WITH EMPLOYEE PAY OPTION
An employee pay-all plan can be considered to exist separate from a plan to which the employer contributes even if the plans are co-ordinated to...
22 June 1994 External T.I. 9409815 - WAGE LOSS REPLACEMENT PLANS
Where the employer makes all contributions to one long term disability plan and it is intended that the employees will make all the contributions...
9 June 1994 Internal T.I. 9405947 - SETTLEMENT OF DAMAGES
Amounts received in settlement of an action relating to an entitlement to long-term disability benefits were viewed as being a settlement of the...
15 February 1994 External T.I. 9329835 F - Conversion of an LTD Plan
Where an individual with a degenerative disorder begins to receive L.T.D. benefits subsequent to the conversion of an employee-pay-all Ltd plan to...
16 December 1993 Income Tax Severed Letter 9320395 - Employee Pay-All Accident Insurance Plans
"The issue of whether or not an employee-pay-all plan exists is not determined by considering who paid the related premiums. Rather, the question...
2 November 1992 T.I. 922363 (September 1993 Access Letter, p. 404, ¶C5-212)
Discussion of treatment of payments from the plan after the employer rather than the employees becomes required to make all contributions to the...
1 June 1993 External T.I. 93061850 - Prestations d'assurance-salaire
CRA disagreed with the representation that all the premiums under a wage loss insurance plan required under the collective agreement were borne by...
20 August 1992 Memorandum 922092 (April 1993 Access Letter, p. 130, ¶C5-190; Tax Window, No. 23, p. 21, ¶2159)
Benefits which arise subsequent to the conversion of a taxable plan to a non-taxable plan are included in income unless those benefits are in no...
18 February 1992, T.I. 913508 (March 1993 Access Letter, p. 65, ¶C5-185)
Discussion of a disability plan which includes a provision whereby the normal employee contributions to a registered pension plan will be funded...
14 February 1992 T.I. 193385 (January - February 1993 Access Letter, p. 7, ¶C5-182)
Discussion of various issues arising where an employer provides both taxable and non-taxable disability benefits to employees.
28 January 1992 Memorandum (Tax Window, No. 16, p. 17, ¶1723)
Where an individual receives a lump-sum payment pursuant to a consent to judgment of the Supreme Court of Ontario and as a result of a claim for...
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| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(g.1) | 64 |
11 July 1991 Memorandum (Tax Window, No. 6, p. 11, ¶1349)
Re employee-pay-all plans.
8 May 1991 T.I. (Tax Window, No. 3, p. 28, ¶1246)
Where an employee is obliged to pay deficiencies under a wage loss replacement plan funded by employee premiums and is entitled to plan surpluses,...
9 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1076)
If the employer pays administration expenses, claim handling charges, legal expenses, actuarial fees or any other charges required in the...
Subparagraph 6(1)(f)(iii)
Administrative Policy
25 January 2007 External T.I. 2006-0213961E5 F - Rémunération, assurance salaire, indemnité CSST
In Year 1, pending the employee’s application for worker’s compensation from the CSST for a disability (which ceased later in the year), the...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) | amount paid by employer in advance of workers’ compensation was reportable as s. 6(1)(f)(iii) income, with the employee later taking a s. 8(1)(n) deduction and a s. 56(1)(v) inclusion | 186 |
Subparagraph 6(1)(f)(v)
Administrative Policy
19 July 2011 External T.I. 2010-0386411E5 F - Régime collectif d'assurance-salaire
Ms. X worked for ABC Inc. from 2000 to 2005, with her and her employer each annually contributing $1,500 to a group salary insurance plan (a...
16 December 2010 Internal T.I. 2010-0380461I7 F - Cotisations versées à régime d'assurance-salaire
Can an employee deduct, from benefits received from a wage-loss replacement plan, contributions the employee made to that plan in previous years...
Commentary
S. 6(1)(f) provides for the inclusion in an employee's income of periodic amounts received under a sickness or accident insurance plan, disability...