CRA BULLETIN #: IT-85R2

Health and Welfare Trusts for Employees

CANADA REVENUE AGENCY BULLETIN #: IT-85R2

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

 

contactus

 

QR CSIAPhone


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