Health and Welfare Trusts for Employees


SUBJECT: INCOME TAX ACT - Health and Welfare Trusts for Employees.

REFERENCE: Paragraph 6(1)(a) and section 104 (also subsections 6(4), 12.2(3), (4), and (7), paragraphs 6(1)(f), 56(1)(d), and (d.1), 60(a), 110(8)(a) and subparagraphs 148(9)(c)(vii) and (ix); also section 19 of the Income Tax Application Rules, 1971 (ITAR))

Bulletin Information

The general thrust of paragraph 6(1)(a) is to include in employment income the value of all benefits received or enjoyed in respect of an employee's employment. However, there are a number of specific exceptions many of which can be described as benefits relating to the health and welfare of the employee. In some cases, the scope of the excepted benefits and applicable tax treatment are well established by other provisions of the Act, (e.g., registered pension funds or plans, deferred profit sharing plans, supplementary unemployment benefit plans, the standby charge for the use of an employer's automobile, employee benefit plans and employee trusts). The treatment to be accorded to the other exceptions can be less clear, particularly when the benefits form part of an omnibus health and welfare program administered by an employer. The purpose of this bulletin is to describe the tax treatment accorded to an employee health and welfare benefit program that is administered by an employer through a trust arrangement and that is restricted to

  • (a) a group sickness or accident insurance plan 
  • (b) a private health services plan,
  • (c) a group term life insurance policy, or
  • (d) any combination of (a) to (c)

To read the entire bulletin please click on the CRA Bulletin Icon Below

 CRA Bulletin125x68

If you have any comments regarding matters discussed in an IT, please send them to:

Manager, Technical Publications and Projects Section
Income Tax Rulings Directorate
Policy and Legislation Branch
Canada Customs and Revenue Agency
Ottawa ON K1A 0L5





  • No comments found
Moose.jpg Croatian Franciscan Centre.jpg Rogers Center-football.jpg Guelph U.jpg Hockey Hall of Fame, Toronto, ON.jpg York U.jpg Lake Muskoka.jpg Yonge St.jpg Niagara vineyard.jpg WindMill.jpg vineyard2.jpg CottageCountry2.jpg Burlington.jpg Halton Country.jpg Rogers Center 2.jpg Univerity college U of T, Toronto, ON.jpg UnionStation.jpg TorontoWaterFront.jpg toronto harbour.jpg CFL TigerCat Cheerleaders, Hamilton, ON.jpg CanadianRail.jpg Via_1.jpg parliament.jpg escarpment.jpg Wolf Lake.jpg Niagara falls.jpg Pearson.jpg LondonSkyline.jpg Brock U.jpg cottagecountry.jpg ROM1.jpg Queens U 2.jpg Goose1.jpg Western U.jpg Queens U.jpg RoyalYork.jpg Rogers Center 1.jpg badlands.jpg Eaton's Center.jpg Sunset1.jpg Hamilton.jpg Ukranian Church.jpg TorontoBeach.jpg lightning.jpg HartHouse, TorontoON.jpg