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.
| 24(1) |
920398 |
| |
A. Humenuk |
| |
(613) 957-2134 |
Attention: 19(1)
April 14, 1992
Dear Sirs:
Re: Group Term Life Insurance Premiums
We are replying to your letter dated February 3, 1992, concerning the taxable benefit added to an employee's income in respect of group term life insurance over $25,000 provided by an employer.
You describe a group term life insurance policy offered to employers which requires an additional premium in respect of employees who are on the active payroll of the employer in order to ensure the continued coverage of employees who are disabled without the necessity of additional premiums for the period of the disability. You ask whether any portion of the extra premium is to be included in the calculation of the taxable benefit of those active employees whose coverage exceeds $25,000.
In our view, the additional premium can be considered as a premium "payable in respect of the policy year ending in the year" notwithstanding that it could also be considered to be in respect of some future policy year as well. Accordingly, the additional premium would be included in the calculation of the taxable benefit under subsection 6(4) of the Income Tax Act.
We trust our comments will be of assistance to you.
Yours truly,
J.A. Szeszyckifor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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