I-3 - Taxation Act

Section 869.4 Disposition versions

2022-06-08

869.4. For the purpose of computing the income of an employer, the following rules apply:

(a)  the employer may deduct for a taxation year the portion of its contributions to an employee life and health trust made in the year that may reasonably be regarded as having been contributed to enable the trust to

i.  pay premiums to an insurance corporation that is licensed to provide insurance under the laws of Canada or a province for insurance coverage for the year or a preceding taxation year in respect of designated employee benefits for beneficiaries described in subparagraph i or ii of subparagraph d of the first paragraph of section 869.2, or

ii.  otherwise provide

(1)  group term life insurance as described in clause B of subparagraph iii of paragraph a of subsection 9 of section 18 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), or

(2)  any designated employee benefits payable in the year or a preceding taxation year to, or for the benefit of, beneficiaries described in subparagraph i or ii of subparagraph d of the first paragraph of section 869.2; and

(b)  the portion of any contribution made to an employee life and health trust that exceeds the amount deductible under paragraph a and that may reasonably be regarded as enabling the trust to provide or pay benefits described in subparagraphs i and ii of paragraph a in a subsequent taxation year is deductible for that year.

2011, c. 6, s. 174; 2022, c. 23, s. 75.

2011-06-06

869.4. For the purpose of computing the income of an employer, the following rules apply:

(a)  the employer may deduct for a taxation year the portion of its contributions to an employee life and health trust made in the year that may reasonably be regarded as having been contributed to enable the trust to

i.  pay premiums to an insurance corporation that is licensed to provide insurance under the laws of Canada or a province for insurance coverage for the year or a preceding taxation year in respect of designated employee benefits for beneficiaries described in subparagraph i or ii of paragraph d of section 869.2, or

ii.  otherwise provide

(1)  group term life insurance as described in clause B of subparagraph iii of paragraph a of subsection 9 of section 18 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), or

(2)  any designated employee benefits payable in the year or a preceding taxation year to, or for the benefit of, beneficiaries described in subparagraph i or ii of paragraph d of section 869.2; and

(b)  the portion of any contribution made to an employee life and health trust that exceeds the amount deductible under paragraph a and that may reasonably be regarded as enabling the trust to provide or pay benefits described in subparagraphs i and ii of paragraph a in a subsequent taxation year is deductible for that year.

2011, c. 6, s. 174.