1. Should an advance income tax ruling be issued in respect of a completed transaction? A review of the life insurance policy submitted indicates that XXXXXXXXXX entered into a life insurance contract (policy number XXXXXXXXXX) with XXXXXXXXXX. The owner of the policy is XXXXXXXXXX. The coverage was for $XXXXXXXXXX and the annual premium is $XXXXXXXXXX. The effective date of the policy was XXXXXXXXXX.
2. Whether a life insurance policy assigned to two registered charities constitutes a charitable donation.
1. No. In accordance with paragraph 7 of Information Circular 70-6R3, we are unable to provide an advance income tax ruling since it is in respect of a completed transaction. I telephoned XXXXXXXXXX, on December 19, 1997, and confirmed that the insurance policy had already been purchased by XXXXXXXXXX and assigned to XXXXXXXXXX had a copy of IC70-6R3 and agreed that since the transaction referred to in his letter had already been partially completed, no advance tax ruling could be issued. I indicated that his cheque would be returned to him and we would provide him with general comments; however, these comments would not be binding on the Department. XXXXXXXXXX agreed with this course of action.
2. Factual determination. Generally the answer would be yes as long as the insurance company is advised of the assignment, and the policy is assigned absolutely.