Canadian Taxation of Life Insurance provides an extensive discussion on the tax treatment of life insurance and estate planning strategies.

For those who practice in the fields of estate planning and business or personal tax, a clear understanding of current rules for taxation of the life insurance policies and annuity contracts is vital. Canadian Taxation of Life Insurance is a unique and comprehensive reference source that provides inestimable assistance to lawyers, accountants, and financial and insurance advisors in evaluating, planning, and maximizing the potential benefits that life insurance products provide.

The authors discuss, in detail, the use of life insurance in business and estate planning, including income tax rules applicable to life insurance policies, from both a current and historical perspective. Extensive coverage is given to various insurance strategies, their tax consequences in corporate, partnership, and personal contexts, as well as the accounting implications associated with these strategies.

What's New:

General impacts expected due to International Financial Reporting Standards (IFRS) changes beginning in 2023;
Several CRA technical interpretations regarding the credit to the capital dividend account for life insurance proceeds, the payment of capital dividends and the valuation considerations relating to life insurance shares and in the context of certain deemed dispositions;
Potential impacts of interest deductibility limitations proposed by the 2021 Federal Budget on leveraged life insurance;
CRA commentary regarding “tax promoter schemes” and their potential impact on leveraged life insurance and leveraged insured annuities as well as the Federal Budget proposals concerning mandatory disclosure of aggressive tax planning and notifiable transactions;
A detailed discussion of limitations on creditor protection afforded life insurance products in dependant relief claims and upon relationship breakdown;
Legislative developments surrounding intergenerational transfers of family businesses and implications on insurance planning;
Tax case law regarding a different owner and beneficiary of life insurance in the corporate context;
New content addressing the use of holding companies in buy-sell situations, the role of life insurance in arm’s length business succession and split-dollar life insurance;
Updates to US estate and gift tax exemptions to 2021;
Legal developments involving charitable gifts of life insurance and the prohibition on trafficking in insurance;
Advanced Life Deferred Annuity and Variable Payment Life Annuity registered plans legislative update;
New content on segregated fund corporate to corporate transfers, Quebec Civil Code sound investments and matrimonial property regimes, non-resident beneficiaries of segregated funds, among other topics.

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Canadian Taxation of Life Insurance, 11th Edition, Softbound book

Canadian Taxation of Life Insurance, 11th Edition, Softbound book