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.
| 19(1) |
File No. 5-8178 |
| |
Blair P. Dwyer |
| |
(613) 957-2744 |
August 9, 1989
19(1)
Re: Term Life Insurance Annual Premiums Deductibility under Paragraph 20(1)(e.1) of the Income Tax Act (Canada) (the "Act")
This is in reply to your letter dated May 31, 1989, in which you requested our current views on whether annual premiums for term life insurance are deductible under paragraph 20(1)(1)(e) or (e.1) of the Act.
Interpretation Bulletin IT-309R sets out the circumstances in which term life insurance premiums are deductible under the Act. In general, if the conditions of this Bulletin are met, annual premiums will be regarded as a "similar fee" for purposes of paragraph 20(1)(e.1).
As you acknowledged in your letter, the Department is in the process of reviewing its position on the deductibility of term life insurance premiums. This review arises as a result of the decision in The Queen v Antoine Guertin Ltee., 87 DTC 5458 (FCA). The comments in this letter are based on current assessing practice and are subject to change as a result of the current review.
The comments in this letter are of a general nature only and do not constitute advance income tax rulings. Accordingly, the comments are not binding on the Department in respect of any specific transactions or events.
Yours truly,
for DirectorFinancial Industries Division Rulings DirectorateLegislative and IntergovernmentalAffairs Branch
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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