Words and Phrases - "in the course of earning income from … property"

a
88
b
44
c
80
d
53
e
38
f
31
g
19
h
14
i
74
j
2
k
2
l
32
m
56
n
25
o
38
p
81
q
3
r
76
s
90
t
47
u
16
v
9
w
23
y
2

28 April 2004 Internal T.I. 2004-0066991I7 F - Paiement incitatif

Summary Under
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x)
incentive payments received from broker to purchase an exempt life insurance policy were received “in the course of earning income from … property” (the policy)

As an incentive for the sale of exempt life insurance policies (having a savings and investment component) a life insurance brokers would pay to clients purchasing the policies an amount equal to the first-year’s commission earned by the broker from the life insurance company.

The Directorate indicated that the incentive payments were includable in the income of such clients under s. 12(1)(x) (absent any election made under s, 12(2.2) respecting the premiums paid) given inter alia that they were received by such clients “in the course of earning income from … property,” noting in this regard that the expression “in the course of” had been interpreted expansively in Wisener (73 DTC 5065) and in Yonge-Eglinton, and further stating:

[A] life insurance policy is a source of income, that is, property acquired for the purpose of earning income from property, whether or not the life insurance policy is an exempt policy.

Words and Phrases
in the course of in the course of earning income from … property
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property property “includes practically any type of economic interest” 142
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose per MacIntyre, life insurance premiums are not deductible from business income 192