CRA finds that the payment of group accident plan premiums by an employer for its benefit gave rise to taxable benefits

S. 6(1)(e.1) imputes a taxable benefit where premiums under a group sickness or accident insurance plan are paid by the employer unless the plan provides for the payment of a periodic income payment that is taxable under s. 6(1)(f). CRA considers that a “group” plan means a plan that has two or more insured employees, and that the s. 6(1)(e.1) benefit arises even if the plan is in place primarily to benefit the employer (e.g., the plan covers loss in a high-risk country, thereby making it easier to request employees to travel there.)

Neal Armstrong. Summary of 12 June 2017 Internal T.I. 2016-0679291I7 F under s. 6(1)(e.1).