FRANÇAIS

CALU REPORTS

CALU Tax Roundtable 2010
At the CALU Annual Meeting on May 4, 2010, Mark Symes, Director of the Financial Sector and Exempt Entities Division of the Income Tax Rulings Directorate, Canada Revenue Agency (CRA), responded to various questions of current concern to CALU members. The CRA´s official responses to the questions are provided in this Report, along with our summary of Mark Symes´ verbal responses to three additional questions. For some questions, CALU has provided a note of clarification or comment concerning the CRA responses. CALU would like to thank Ted Ballantyne, CALU´s former Director, Advanced Tax Policy; and Jillian Welch, Partner, Wilson and Partners LLP, CALU´s Tax Advisor, for their participation in the Roundtable. All statutory references are to the Income Tax Act (Canada) unless otherwise specified.

Life After Death: Modern Genetics and the Estate Claim

In this article by Kimberly Whaley, Partner, Whaley Estate Litigation and a certified specialist in Estates and Trust Law, she considers certain estate law issues that may arise given recent scientific advances in the field of genetics and assisted reproduction, and how the courts are likely to react to these issues.

Science has advanced by leaps and bounds in terms of genetic and reproductive technologies. Genetic testing to determine parentage has been available for decades, and has begun to play a prominent role in legal proceedings, from assessing biological relationships for the purposes of estate disputes to governmental child support collection efforts. DNA testing allows for efficient and cost-effective testing of biological relationships in estate disputes.

This will impact how the Courts in the future interpret the words “mother,” “child” and “issue” in light of current legislation, where, for example, a child has three different mothers, that is: a "genetic mother" (who provides the egg and half of the genetic code); a "gestational mother" (who provides the use of her uterus and gives birth to the child); and, a "social mother" (who raises and cares for the child).

Dealing with Private Company Shares at Death: Post-Mortem and Insurance Planning (Part II)

This article contains the second part of a two-part article dealing with the post-mortem tax planning for an individual who owns private company shares at death. In the article Carol Brubacher of Manulife´s Tax and Estate Planning Group discusses and provides detailed analysis regarding the overall goal of post-mortem planning to minimize the tax burden arising at death and on distribution of a deceased person´s assets to his or her chosen beneficiaries.

In Part I, Carol looked at an individual who owns common shares of an investment corporation at death. In Part II, Carol looks at an individual who owns fixed value preference shares of an operating company.

This article was originally published in Manulife´s Tax and Estate Planning Groups Tax Topics. CALU thanks Carol and Manulife for sharing this excellent discussion with us.

Table ronde sur la fiscalite: apff 2009

Les questions et réponses du numéro d´octobre 2009 de la table ronde sur la fiscalite des strategies financieres et des instruments financiers de l´Association de planification fiscale et financiere.  La CALU remercie Mme Jocelyne Gagnon, Coordonnatrice de la table ronde, qui est membre de la CALU, de nous avoir recommandé ce document. Nous apprecions egalement la participation du Ministere des Finances Canada et l'Agence des douanes et du revenue du Canada.

Please note that CALU has translated key questions from the taxation and financial strategies roundtable and has posted this as a separate document to the CALU website. Our sincere thanks to our colleagues at the APFF for sharing this important information with us.

Paul McKay, CAE

Dealing with Private Company Shares at Death: Post-Mortem and Insurance Planning (Part 1)

This article contains part I of a two-part series dealing with the post-mortem tax planning for an individual who owns private company shares at death. In the article Carol Brubacher of Manulife´s Tax and Estate Planning Group discusses and provides detailed analysis regarding the overall goal of post-mortem planning to minimize the tax burden arising at death and on distribution of a deceased person´s assets to his or her chosen beneficiaries.

In Part I, Carol looks at an individual who owns common shares of an investment corporation at death. In Part II, Carol looks at an individual who owns fixed value preference shares of an operating company.

This article was originally published in Manulife´s Tax and Estate Planning Groups Tax Topics. CALU thanks Carol and Manulife for sharing this excellent discussion with us.

Planning for Success: Coping with Adversity

Financial advisors and their clients are often challenged to be both conservative and creative, particularly when a situation calls for both security and growth potential in  their planning. The task of anticipating enhanced longevity while minimizing current and future tax consequences makes plan design tough enough, with the unsure economic climate adding to the degree of difficulty. In this article, Sue Hudson offers thoughtful and insightful consideration of three case studies which demonstrate the need for flexibility and the importance of relationship management through regular client reviews.

CALU Tax Roundtable 2008

At the CALU Annual Meeting on April 29, 2008, Mickey Sarazin, Director of the Financial Sector and Exempt Entities Division of the Income Tax Rulings Directorate of the Canada Revenue Agency (CRA), responded to various questions and technical issues of current concern. Our summary of his answers to the general questions as well as the CRA´s official responses to the technical questions are provided in this Report. For some questions, CALU has provided a note of clarification or comment concerning the official responses. CALU would also like to thank Ted Ballantyne, CALU´s Director, Advanced Tax Policy and Jillian Welch, Partner, Wilson and Partners LLP, CALU´s Tax Advisor, for their participation in the Roundtable. All statutory references are to the Income Tax Act (Canada) unless otherwise specified.

Charitable Giving & Life Insurance

The charitable applications of life insurance speak directly to its socio-economic value and, as importantly, the value of those who advise as to the solutions offered through the constructive applications of this historic product. Through preferential tax treatments, governments encourage support to worthy causes and organizations and recognize the dynamic that initiates and sustains these charitable forces.

This article by Kevin Wark of PPI Financial Group refreshes the traditional applications of life insurance in the cause-related context of giving and identifies innovative planning opportunities in a new age of donor-centric marketing.

Table ronde 2006 de la CALU sur la politique fiscale

À l´assemblée annuelle de la CALU le 9 mai 2006, Phil Jolie, directeur par intérim de la Division des entreprises et des sociétés de personnes de la Direction des décisions de l´impôt à l´Agence du revenu du Canada (ARC), a répondu à diverses questions sur des sujets techniques d´intérêt courant. Voici les questions et la position de l´ARC sur ces divers sujets. Pour certaines questions, la CALU a fourni une note de clarification ou des commentaires concernant les réponses officielles. Toutes les références à des textes législatifs concernent la Loi de l´impôt sur le revenu (Canada), sauf indication contraire.

CALU Tax Roundtable 2006

At the CALU Annual Meeting on May 9, 2006, Phil Jolie, Acting Director of the Business and Partnerships Division of the Income Tax Rulings Directorate of the Canada Revenue Agency (CRA), responded to various questions regarding technical issues of current concern. The following are the questions and the CRA´s position on the respective issues. For some questions, CALU has provided a note of clarification or comment concerning the official responses. All statutory references are to the Income Tax Act (Canada) unless otherwise specified.

Table ronde 2005 de la CALU sur la politique fiscale

À l´assemblée annuelle de la CALU le 3 mai 2005, Mickey Sarazin, directeur par intérim de la Division des industries financières de la Direction des décisions de l´impôt à l´Agence du revenu du Canada (ARC), a répondu à diverses questions et sujets techniques d´intérêt courant. Voici les questions et la position de l´ARC sur ces divers sujets. Pour certaines questions, la CALU a fourni une note de clarification ou des commentaires concernant les réponses officielles. La CALU tient à remercier également M. Denis Normand, chef principal de la section des institutions financières, division de l'impôt des entreprises de la direction de la politique de l´impôt du ministère des Finances et M. William R. Holmes, pour leur participation à la table ronde de l´ARC. Toutes les références à des textes législatifs concernent la Loi de l´impôt sur le revenu (Canada), sauf indication contraire.

CALU Tax Roundtable 2005

At the CALU Annual Meeting on May 3, 2005, Mickey Sarazin, Acting Director of the Financial Industries Division of the Income Tax Rulings Directorate of the Canada Revenue Agency (CRA), responded to various questions and technical issues of current concern. For some questions, CALU has provided a note of clarification or comment concerning the official responses. CALU also thanks Denis Normand, Senior Chief of the Financial Institutions Section of the Business Income Tax Division of the Tax Policy Branch of the Department of Finance and William R. Holmes, for their participation in the Roundtable. (Please note that all statutory references are to the Income Tax Act (Canada) unless otherwise specified.)

Table Ronde 2004 de la CALU sur la politique fiscale

À l´assemblée annuelle de la CALU le 4 mai 2004, Mickey Sarazin, directeur par intérim de la Division des industries financières de la Direction des décisions de l´impôt à l´Agence du revenu du Canada (ARC), a répondu à diverses questions et sujets techniques d´intérêt courant. Voici les questions et la position de l´ARC sur ces divers sujets. Pour certaines questions, la CALU a fourni une note de clarification ou des commentaires concernant les réponses officielles.Toutes les références à des textes législatifs concernent la Loi de l´impôt sur le revenu (Canada), sauf indication contraire.

CALU Tax Roundtable 2004

At the CALU Annual Meeting on May 4, 2004, Mickey Sarazin, Acting Director of the Financial Industries Division of the Income Tax Rulings Directorate of the Canada Revenue Agency (CRA), responded to various questions and technical issues of current concern. The following are the questions and the Agency's position on such issues as transfer of a life insurance policy, gift of a life insurance policy to charity, corporate-owned life insurance, and borrowing to acquire common shares. For some questions, CALU has provided a note of clarification or comment concerning the official responses. All statutory references are to the Income Tax Act (Canada) unless otherwise specified.

DOCUMENTS ENGLISH/FRANÇAIS

Réponses de L´ARC : Table ronde 2010 de la CALU sur la politique fiscale

À l´assemblée annuelle de la CALU le 4 mai 2010, Mark Symes, directeur de la Division du secteur financier et des entités exonérées de la Direction des décisions de l´impôt à l´Agence du revenu du Canada (ARC), a répondu à diverses questions d´intérêt courant pour les membres de la CALU. Ce Rapport transmet les réponses officielles de l'ARC à nos questions, ainsi qu'un sommaire des réponses verbales de Mark Symes à trois questions supplémentaires. Pour certaines questions, la CALU a fourni une note de clarification ou des commentaires concernant les réponses de l'ARC. La CALU tient à remercier Ted Ballantyne, ancien directeur, politique fiscale avancée, de la CALU, et Jillian Welch, associée chez Wilson and Partners LLP, conseiller fiscal de la CALU, pour leur participation à la table ronde. Toutes les références à des textes législatifs concernent la Loi de l´impôt sur le revenu (Canada), sauf indication contraire.

A New Age of Advice

CALU has begun programming for its 2011 Annual Meeting as per this message from AGM Chair Simon Hiebert regarding the theme "A New Age of Advice" and possible programming of presentations and workshops.

Paul McKay CAE

CALU's Exempt Test Submission to Finance
On November 10, 2009, CALU made a submission to the Department of Finance Canada relating to possible changes to the exempt test as a result of discussions that have taken place over the past two years or so. (Click on the PDF file below to view a copy of the submission.) The submission essentially summarizes CALU´s position on various issues relating to the current exempt test rules and related topics. 

CALU Tax Bulletin 2009

The Canada Revenue Agency (CRA) recently announced a change in assessing practice that will affect certain planning structures involving corporate owned insurance. The purpose of this bulletin is to review the announced changes and how they will affect current and new insurance structures.

2009 APFF Tax Roundtable

In October of 2009, L'Association de planification fiscale et financiere, APFF, held their annual convention in Montreal. At that time, a Tax Roundtable, coordinated by Mme Jocelyne Gagnon, a member of APFF and of CALU, was held with representatives of the Canada Revenue Agency and the Department of Finance Canada responding to questions of importance to the taxation and advanced planning applications of life insurance and related financial products. The attached PDF file is the English translation of a portion of the original document french language document which is also posted to this site. CALU would also like to recognize the efforts of CALU member Me. Helene Marquis, who is a member of the APFF Board of Directors.

Paul McKay, CAE

Disability Benefits under UL policies: CALU submission to CRA 2009

On April 1, 2009, CALU wrote to the Canada Revenue Agency (CRA) about a December 2008 CRA Technical Letter which questioned whether the payment of disability benefits under a universal life policies from the accumulating fund was in fact a disability benefit for income tax purposes. Our arguments are similar to the arguments CALU made in 2000 with respect to payments made at the first death under a joint last-to-die policy.

Transfer of a Life Policy and Capital Dividend Account: CALU recommendations to Finance 2009

CALU has written to the Department of Finance to recommend changes to the Income Tax Act which would accommodate the transfer of a life insurance policy from a shareholder to a corporation under the relevant section of the Act, as well as to allow a private corporation which was the beneficiary of a life insurance policy owned by a trust to have the death benefit credited to its capital dividend account.  

2008 APFF Tax Roundtable

In October of 2008, L'Association de planification fiscale et financiere, APFF, held their annual convention in Quebec. At that time, a Tax Roundtable, coordinated by APFF and CALU member Jocelyne Gagnon, Director Taxation (Quebec) for PPI Financial Group, was held with representatives of the Canada Revenue Agency responding to questions of importance to the taxation and advanced planning applications of life insurance and related financial products. The attached PDF file is the English translation of the original document.  

Table ronde sur la fiscalite apff 2008

Les questions et réponses du numéro d´octobre 2008 de la Table ronde sur la fiscalite des strategies financieres et des instruments financiers de l´apff.  La CALU remercie Mme Jocelyne Gagnon, Coordonnatrice de la table ronde, qui est membre de la CALU, de nous avoir recommandé ce document.

Table ronde 2008 de la CALU sur la politique fiscale

À l´assemblée annuelle de la CALU le 29 avril 2008, Mickey Sarazin, directeur de la Division du secteur financier et des entités exonérées de la Direction des décisions de l´impôt à l´Agence du revenu du Canada (ARC), a répondu à diverses questions et sujets techniques d´intérêt courant. 

Table Ronde sur la fiscalite apff 2007

Les questions et réponses du numéro d´octobre 2007 de la Table ronde sur la fiscalite des strategies financieres et des instruments financiers de l´apff.  La CALU remercie Mme Jocelyne Gagnon, Coordonnatrice de la table ronde, qui est membre de la CALU, de nous avoir recommandé ce document.

Table ronde sur la fiscalite apff 2006

Les questions et réponses du numéro d´octobre 2006 de la Table ronde sur la fiscalite des strategies financieres et des instruments financiers de l´APFF.  La CALU remercie Mme Jocelyne Gagnon, qui est membre de la CALU et a participé au panel de la table ronde, de nous avoir recommandé ce document.

Paul McKay, cae

Table ronde sur les produits financiers apff 2005

Les questions et réponses du numéro d´octobre 2005 de la Table ronde sur les produits financiers de l´APFF.  La CALU remercie Mme Jocelyne Gagnon, qui est membre de la CALU et a participé au panel de la table ronde, de nous avoir recommandé ce document.

Paul McKay, cae

Le «coût net de l´assurance pure»

Le «coût net de l´assurance pure» ou CNAP est un concept d´une importance fondamentale en assurance-vie, qui mérite d´être examiné en détail par les agents, les conseillers et les consommateurs. On comprend facilement que le conseiller et le consommateur s´attendent à ce que le CNAP d´une police fournie par deux assureurs différents mais assurant la même personne (le capital de risque net étant égal) soit identique dans les deux cas. En réalité, les directives fournies par la Loi de l´impôt sur le revenu et les règlements ne constituent pas un guide vraiment complet. Dans le présent article, Florence Marino, qui est membre de la CALU, fait un tour d'horizon des origines du concept, de ses applications et de ses interprétations.

Paul McKay, cae

Table ronde sur les produits financiers apff 2004

Les questions et réponses du numéro d´octobre 2004 de la Table ronde sur les produits financiers de l´APFF. La CALU remercie Mme Jocelyne Gagnon, qui est membre de la CALU et a participé au panel de la table ronde, de nous avoir recommandé ce document.

Paul McKay, cae

Methodes Pour Garantir Un Emprunt Avec un Contrat D´Assurance-Vie

Il existe plusieurs façons de procéder à la mise en garantie d´un contrat d´assurance-vie. Toutefois, certaines méthodes peuvent générer des conséquences très différentes et parfois non souhaitables. Il arrive fréquemment que le prêteur impose ses règles sans tenir compte des pertes économiques possibles pour l´emprunteur. Par Hélène Marquis, LL.L., D. Fisc., Pl. Fin. TEP.