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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether or not we will apply paragraph 56(1)(d) to periodic payments received under a disability policy.
Position: No
Reasons: Our current practice has been not to apply paragraph 56(1)(d) to these payments.
XXXXXXXXXX 2001-009298
Michèle Trotier
October 29, 2001
Dear XXXXXXXXXX:
Re: Individual Disability Insurance Policies
This is in reply to your letter of July 11, 2001 wherein you requested our comments with respect to the application of paragraph 56(1)(d) of the Income Tax Act ("Act") to periodic disability benefit payments.
As we indicated previously, we are maintaining our current practice which is not to apply paragraph 56(1)(d) of the Act to include such periodic payments received under a disability policy in the recipient's income. Any change in the application of paragraph 56(1)(d) of the Act to these periodic payments would only be made on a prospective basis.
As discussed your question concerning wage loss replacement plans will be addressed by our Business and Individual Section. The manager of that Section is John Oulton (613-957-2098).
We trust that the above comments will be of assistance.
Yours truly,
F. Lee Workman
Manager
Financial Institutions Section
Financial Industries Division
Income Tax Rulings Directorate
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