I have a corporation and would like to pay out premiums for critical illness insurance, what are the tax implications?
Allan Madan, CA
When a corporation pays premiums for critical illness insurance it’s a non-deductible expense and is classified as a taxable benefit to the employee/shareholder. However, if a qualifying health and welfare trust is in place, then its deductible to the corporation and is not a taxable benefit to the employee/shareholder.
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ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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