Critical illness (CI) does not have specific mention in the Income Tax Act. It depends on the exact circumstances whether a CI policy resembles more to a life insurance or a sickness/accident insurance.
CI premiums paid by the corporation are not deductible. When the policy value is paid to the corporation on diagnosis of a critical illness, that benefit will be tax-free.
The same treatment applies to individuals (i.e. not deductible, not taxable).
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.
Accounting & Management
Business & Corporate Tax
Non-Resident & International Tax
Personal Tax
Real Estate Tax
U.S & Cross Border Tax
When business owners restructure, incorporate, or transfer assets to a corporation, tax consequences can quickly become complex. One of the […]
Owning a rental property in Canada while living abroad comes with unique tax obligations. If you earn rental income from […]
When you’re buying or selling a business in Ontario through the transfer of shares, the Share Purchase Agreement (SPA) is […]
Navigating corporate taxes in Canada is complex but smart planning can significantly reduce what your company pays each year. With […]