Teskey
T.C.J.:
The
Appellant
in
his
Notice
of
Appeal
therein,
appealed
his
reassessment
of
income
tax
for
the
years
1994,
1995
and
1996,
and
elected
the
informal
procedure.
Issue
The
issue
before
me
is
whether
amounts
paid
by
the
Appellant’s
former
employer.
Ball
Packaging
Products
of
Canada
(“Ball”)
in
respect
of
group
term
life
insurance
premiums
are
to
be
included
in
computing
the
Appellant’s
taxable
income.
At
the
conclusion
of
the
hearing,
for
reasons
given
then,
I
advised
the
Appellant
that
his
1994
and
1995
appeals
would
be
dismissed
for
reasons
given
in
argument
by
the
Respondent
and
upon
relying
on
the
decision
of
my
late
colleague
Sobier,
J.
in
Beare
v.
Minister
of
National
Revenue
(1991),
91
D.T.C.
411
(T.C.C.).
The
1996
appeal
was
adjourned
to
allow
the
Appellant
to
file
with
me
a
letter
from
Ball
with
regards
to
the
increase
in
the
1996
amount
over
the
1995
amount,
in
the
sum
of
$431.95.
The
Appellant
supplied
the
Court
with
a
letter
from
Ball.
The
pertinent
part
reads:
Survivor
Income
Benefit
(SIB)
Under
the
terms
of
the
Group
Insurance
Plan
for
the
Simcoe
plant,
should
you
pass
away
before
your
spouse,
she
will
be
eligible
for
a
monthly
SIB
in
the
amount
of
$150.
This
is
a
benefit
for
which
the
company
pays
a
monthly
premium
to
the
Maritime
Life
Insurance
Company
and
is,
under
Revenue
Canada
rules,
considered
a
taxable
benefit.
It
is
not,
nor
has
it
ever
been,
a
benefit
which
is
payable
as
part
of
any
pension
plan.
As
you
know,
the
Simcoe
Hourly
Pension
Plan
was
wound
up
upon
the
plant’s
closure.
I
have
enclosed
a
copy
of
the
Index
Section
from
the
Labour
Agreement
which
clearly
shows
the
Survivor
Income
Benefit
as
a
benefit
included
under
the
Group
Insurance
Plan.
The
monthly
premium
is
$22.22
plus
Provincial
Sales
Tax
for
each
$100
of
coverage.
1
5
x
$22.22
x
12
mths
x
1.08
$431.95
The
amount
shown
in
Box
28
of
your
1996
T4A,
which
must
be
included
with
your
1996
tax
return,
is
a
combination
of
the
annual
Life
Insurance
premium
at
$971.38
and
the
annual
SIB
premium
at
$431.95
for
a
total
taxable
benefit
of
$1,403.33.
lam
satisfied
that
the
amount
of
$431.95,
paid
during
1996
in
respect
of
survivor
income
benefits
is
an
amount
that
is
included
in
income
pursuant
to
subsection
6(4)
of
the
Income
Tax
Act
(the
“Act”).
The
amount
is
clearly
funding
a
pension.
The
regulation
amending
the
Income
Tax
Regulation
SOR/97-494
requires
that
premiums
paid
in
respect
of
survivor
income
benefit
be
included
in
calculating
the
prescribed
benefit
of
the
group
life
insurance
benefit
for
the
purposes
of
subsection
6(4)
of
the
Act.
Section
2702
of
the
Income
Tax
Regulations
(the
“Regulations”)
outlines
the
calculation
of
the
term
insurance
benefit
which
by
virtue
of
section
2701
of
the
Regulations
is
a
component
of
the
prescribed
benefit,
which
must
be
included
in
income
pursuant
to
subsection
6(4)
of
the
Act.
Subsection
2702(3)
of
the
Regulations
expressly
provides
a
means
of
calculating
the
amount
of
term
insurance
on
a
person’s
life,
for
the
purposes
of
calculating
the
term
insurance
benefit
where
the
proceeds
of
the
insurance
are
payable
only
in
the
form
of
periodic
payments.
The
form
of
payment,
namely
periodically,
is
expressly
contemplated
by
the
legislation
and
are
the
amounts
in
respect
of
group
term
insurance.
The
amount
of
$431.95
was
not
premium
in
respect
of
a
pension
plan,
it
is
in
respect
of
group
term
life
insurance.
For
these
reasons,
the
appeal
for
the
year
1996
is
also
dismissed.
Appeal
dismissed.
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