Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
April 3, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter of January 31, 200 1, on behalf of your constituent, XXXXXXXXXX, regarding the income tax treatment of Alberta health care premiums paid by her and reimbursed to her by the Public Service Alliance of Canada.
It is our understanding that individual residents of Alberta are required to pay premiums for the Alberta health plan. However, the terms of some employment contracts or superannuation plans provide for the reimbursement of part or all of these health care premiums that are paid by the individuals. Such benefit payments are generally made by way of rebate to the individual, since the premiums are paid directly by the individual to the Alberta health plan.
Health care premiums that are paid by an individual and that are reimbursed by an employer, former employer or superannuation find are taxable in the hands of the individual, because these payments are considered to be a reimbursement of personal expenditures of the individual. As with other expenditures that are the personal liability of an individual, when an employer pays these premiums or reimburses an employee for such payments, the employee is considered to have received a taxable employment benefit according to existing income tax legislation. As this is a matter of taxing the additional remuneration or benefit received by the employee, there is no issue of double taxation.
I trust my reply will assist you in replying to your constituent.
Yours sincerely,
Martin Cauchon
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© Her Majesty the Queen in Right of Canada, 2001
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