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.
February 14, 1990
Registration Financial Industries
Division
Charities Division M.M. Trotier
Ron Porteous 957-8957
Universal Life Policies
24(1)
Following your telephone conversation on February 9, 1990 with Michele Trotier of our Directorate, this is to confirm our response to your query of January 3, 1990 as to whether gifts of "universal life" policies can qualify as charitable donations as described in Interpretation Bulletin IT-244R2.
Notwithstanding the IT only refers to "term" and "whole life" policies, we are of the view that a transfer of or payments of premiums in respect of such policies could qualify as charitable donations where there has been an absolute assignment of the policy to the charity and where no right, privilege, benefit or advantage can accrue to the donor as a result of the gift. However this is a question of fact, that can only be determined after consideration of the circumstances of a particular situation.
Whether or not a charity is willing to accept an interest in such a policy as a charitable donation, where it otherwise qualifies, may depend on the implications that such a policy may have, inter alia, on the computation of the disbursement quota of the particular charity. We understand that this issue has recently been raised by a taxpayer with our Services, Public Utilities and Exempt Corporations Section (Ernie Wheeler, Chief 957-2100).
We trust that the above comments will be of assistance.
Chief
Financial Institutions Section
Financial Industries Division
Rulings Directorate
Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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, 1990
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, 1990
Email this Content