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Is My Life Insurance Plan a Tax Shelter? (And if So … So What?)
Is your IFA compliant? Read why the CRA’s strict tax shelter definition can retroactively deny your NCPI and interest deductions, and what you can do before an audit.
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The Statutory Trap: How IFA Demand Loans Can Trigger Tax Shelter Rules
The Canadian life insurance industry is falling into a statutory trap. Learn why IFA demand loans can fail the CRA’s 10-year repayment rule under ITA s. 143.2, triggering a $0 Net Cost and unregistered tax shelter classification.
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The IFA Time Bomb: Is Your “Free” Insurance an Unregistered Tax Shelter?
Corporate life insurance plans using Immediate Financing Arrangements may face CRA audit risks if structured to borrow and deduct loans indefinitely. This could lead to severe penalties. Confirm with your tax advisor if a Tax Shelter ID is necessary.
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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.