In his webinar on November 2, 2021, CEO & Chairman, John Nicola, provided exclusive insight into Canada’s taxation environment and explained how to optimize your tax planning strategy in light of current regulations and took the time to answer viewer questions. Each week, we will publish his answers to your questions.
Will the Government find a way to stop income stripping or change the way life insurance death benefits are tax-free (to corporations as well)?
I assume the question is referring to Capital gains surplus strips. I have been told by many people more expert on tax than I that this strategy is on the Department of Finance’s radar but so far no changes have been made. It might be reasonable to assume that this approach to tax planning might not be around for much longer.
On life insurance, we are not aware of any planned changes to the taxation of death benefits personally or corporately. The best source for an update on this would be CALU (ww.calu.com)
This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.