Principal Issues: Whether an amount received as a refund of premium benefit with respect to an interest in a life insurance policy that has matured is included in income.
Position: Yes, to the extent that the proceeds of the disposition exceed the adjusted cost basis (ACB) of the interest in the policy.
Reasons: Subsection 148(1) includes in computing income the excess of the proceeds of the disposition over the adjusted cost basis on the disposition of an interest in a life insurance policy.