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Is My IFA Life Insurance a Tax Shelter? (in Plain English)
This memorandum provides a simplified analysis of Immediate Financing Arrangements (IFAs) under the Income Tax Act, explaining their classification as tax shelters. It emphasizes the significance of presented tax benefits compared to net costs and the implications for promoters and subscribers, including penalties and reporting requirements. For detailed information, refer to tax-shelter.ca.
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Is My IFA Life Insurance Plan a Tax Shelter?
An objective, mechanical breakdown of the compliance risks hidden in fully financed life insurance strategies. Read why the specific tracing, demand-loan structures, and tax deductions used to sell IFAs might inadvertently trigger the strict tax-shelter definitions of the Income Tax Act.
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The Not-So-Sweet Honey Trap: What the Tax Court’s Latest Ruling Means for IFAs
The Tax Court of Canada’s ruling in Honey v. The King highlights vulnerabilities in Immediate Financing Arrangements (IFAs) by dismantling traditional defenses used in leveraged insurance strategies. The decision indicates a crackdown on these structures, revealing that CRA audits can access broad data and that courts may not recognize the separation between loans and policies,…
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Understanding Universal Life (UL)
Demystifying Universal Life (UL) insurance: How to integrate a guaranteed life insurance contract with a tax-exempt depository to create a powerful, self-funding asset-location tool.
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Corporate Life Insurance and Post-Mortem Pipelines: Optimizing the Sequence
The post discusses the complexities of post-mortem tax planning for Canadian business owners involving corporate-owned life insurance and pipeline strategies. Strategic sequencing of transactions is vital to maintain tax efficiency and avoid complications with tax benefits.