2016-0632611C6 2016 CALU CRA roundtable Q2

Principal Issues: Can the CRA comment on any other insurance related planning strategies that are currently under review?

Position: Comments provided below

Reasons: -

Author: Johnstone, Alexander
Section: -

CALU Roundtable – May 2016

Question 2 – Review of Insurance Planning Strategies

Question

Can the CRA comment on any other insurance related planning strategies that are currently under review?

CRA Response

The Act was also amended in 2013 to deny multiple and unintended tax benefits related to 10/8 arrangements to improve the integrity and fairness of the tax system.

As part of its mandate to administer the Act and to deter non-compliance, the CRA will monitor compliance with the 10/8 rules and their effectiveness and communicate any concerns in this area to Finance Canada so that they can evaluate whether further legislative action is warranted.

Also, as part of the Government of Canada’s agenda to improve the integrity and fairness of the tax system, the CRA will continue to take action to detect and to address domestic tax planning schemes, including planning with life insurance policies.

Prepared by: Alex Johnstone/Chantal Pelletier
2016-063261
May 3, 2016

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