22 May 2002 External T.I. 2002-0140635 - taxability of employer paid insurance

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:

Correction Letter.

Position:

N/A

Reasons:

N/A

XXXXXXXXXX 2002-014063

Randy Hewlett, B.Comm.

May 22, 2002

Dear XXXXXXXXXX:

Re: Taxability of Employer Paid Insurance Benefits

This is further to our letter of May 13, 2002 (our file # 2002-013430) that was in response to your letter dated April 7, 2002, wherein you requested our opinion on whether or not "employer-paid insurance benefits are taxable, insurable and/or pensionable" in your specific situation.

In order to more accurately reflect the current income tax legislation, we wish to replace the last sentence of the first paragraph that begins on page 2 with the following:

The benefit under subsection 6(4) of the Act is calculated in accordance with Part XXVII of the Income Tax Regulations (the Regulations).

Yours truly,

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch