I-3 - Taxation Act

Section 869.3 Disposition versions

2022-06-08

869.3. No amount may be deducted in a taxation year by an employee life and health trust under paragraph a of section 657 if the trust

(a)  is not operated in the year in accordance with the terms required by section 869.2 to govern the trust, unless it is reasonable to conclude that its trustees neither knew nor ought to have known that designated employee benefits have been provided to, or contributions have been made in respect of, beneficiaries other than those described in subparagraphs i and ii of subparagraph d of the first paragraph of section 869.2; or

(b)  provides any benefit for which, if the benefit had been paid directly to the employee and not out of the trust, the contributions or premiums would not be deductible in computing an employer’s income in respect of any taxation year.

2011, c. 6, s. 174; 2022, c. 23, s. 74.

2011-06-06

869.3. No amount may be deducted in a taxation year by an employee life and health trust under paragraph a of section 657 if the trust

(a)  is not operated in the year in accordance with the terms required by section 869.2 to govern the trust; or

(b)  is operated or maintained in the year primarily for the benefit of one or more key employees or their family members described in subparagraph ii of paragraph d of section 869.2.

2011, c. 6, s. 174.