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Q: Is key man insurance purchased under the name of a director tax deductible for the company?

A: Key man insurance purchased under the name of a director is a private expenditure hence the premium paid is not allowed for tax deduction. However, if this is a perquisite for the director as stated in the employment contract, it will be tax deductible for the company but is also a taxable income for the director.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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