I have a corporation and would like to pay out premiums for critical illness insurance, what are the tax implications?

Allan Madan, CA

Oct 24, 2012

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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.

Disclaimer

The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

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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