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.
963769
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
December 12, 1996
Dear Sirs:
Re: Ontario Automobile Insurance and Structured Settlements
This is in reply to your letter of November 7, 1996 concerning the above-noted subject.
In your letter you have made reference to an individual who is entitled to benefits under the Insurance Act of Ontario as prescribed by Regulation in the Statutory Accident Benefits Schedule - Accidents on or after January 1, 1994 (SABS). When an individual settles a claim with an insurer other than in accordance with the benefits provided under the SABS, (the settlement would comply with the provisions of Ontario Regulation 780 made under the Insurance Act), your concern is whether the periodic payments under such a settlement could be set up as a structured settlement in the manner set out in paragraph 5 of Interpretation Bulletin IT-365R2.
Based on our review of the relevant legislation, it is our view that, provided that all of the requirements of the Insurance Act of Ontario and relevant regulations are complied with, periodic payments in settlement of damages for personal injuries sustained in an automobile accident can be paid by way of a structured settlement as contemplated in Interpretation Bulletin IT-365R2, if the requirements in paragraph 5 of that bulletin are otherwise met.
We trust our comments will be of assistance to you.
Yours truly,
John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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