CRA references shareholder’s benefit on gratuitous transfer of critical illness policy by corporation to its shareholder

CRA noted that the transfer of a critical illness insurance policy by a corporation to its shareholder would not give rise to a capital gain to the corporation, but appeared to consider that if the transfer was made for no consideration, there would be a taxable shareholder benefit conferred on the shareholder equal to the policy’s fair market value.

Neal Armstrong. Summary of 7 October 2016 APFF Financial Strategies and Instruments Roundtable, Q. 1 under s. 15(1).