CIFPs: Tax & Budget 2012 Update

Taxation of Insurance Commissions
- Advisors’ Own Policies
CRA’s Interpretation Bulletin IT-470R:
• “where a life insurance salesperson acquires
a life insurance policy, a commission received
by that salesperson on that policy is not
taxable provided the salesperson owns that
policy and is obligated to make the required
premium payments thereon.”
CRA update:
• “where the particular salesperson has
purchased the particular life insurance policy
for personal use rather than investment or
business purposes.”