Читать книгу Kickstart Your Corporation - Andrew Feindel - Страница 20

If you're thinking about transferring a personally held insurance policy to your corporation, you need to proceed with great care, specifically comparing:

 The corporate savings of the corporation paying the insurance premium (note that life insurance premiums are not a deductible expense unless specifically required as part of collateral on debt) minus the income tax due on the cash surrender value (CSV) minus the adjusted cost base (ACB) at the transfer; and

 The cost of paying a lump-sum bonus this year so that, after personal income tax, you have enough remaining to pay the tax due on the taxable income.

While the March 2016 federal budget reduced the benefits of transferring insurance policies to a corporation, it recommended that consideration which is at least equal to the higher of the CSV and the ACB of the policy be paid. If this recommendation is implemented, the policy's new ACB will be the highest of the following amounts: the value of the policy (CSV), the fair market value of the consideration paid, and the ACB. This new ACB will affect the taxation of the insurance plan. If the policy is surrendered before death, there is a gain to the extent that the CSV exceeds the ACB. On death, any life insurance proceeds received, assuming the corporation is the beneficiary, are added to the CDA account, and can be paid out as a tax-free capital dividend.