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 Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether 118.1(5) apply in respect of the death benefit paid on a life insurance policy where a registered charity is the beneficiary under the policy and no mention of the policy is made in a will?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
The amount paid to the charity is the fulfilment of a legal obligation under the policy and does not constitute a gift. See 1-923659 (Dec 18, 1992),
A-923659 (Feb 26, 1993).
5-941667
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
October 11, 1994
Dear Sirs:
Re: Subsection 118.1(5) of the Act
This is in reply to your letter of June 22, 1994 wherein you requested a technical interpretation concerning subsection 118.1(5) of the Income Tax Act ("Act").
It is the Department's position that subsection 118.1(5) of the Act does not apply in respect of the death benefit paid on a life insurance policy to a registered charity where the registered charity has been designated as the beneficiary under the policy and no mention of the policy is made in a will.
The foregoing opinion is not a ruling and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, is not binding on the Department.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content