Jayson Lowe explains that a Canadian corporation can own an insurance policy, which is exempt from passive investment income tax rules. The policy also creates advantages through the Capital Dividend Account, a notional account that provides additional tax benefits.
Can we get a contract under an incorporation in Canada? The answer is absolutely yes, and there are some advantages there. The policy itself is exempt from the passive investment income tax rules, but there are a number of other advantages related to the CDA, the capital dividend account, which is just a notional account. You can do some research on that, but yes, and there are many advantages. Want to learn more? Just visit watchibc.com. That's watchibc.com.
