Les Investissements Nolinor Inc. v. ARQ, 2023 QCCQ 3835 -- summary under Paragraph 20(1)(e.2)

The taxpayer (Nolinor) was required pursuant to a covenant under its loan agreement with a Canadian bank to take out a policy on the life of the individual who was its CEO and (through a holding company) its wholly-owning shareholder (Mr. Prudhomme) and assign that policy to the Bank as security for the loan. The ARQ denied the deduction by Nolinor of deductions for the premiums paid by Nolinor on the policy since Mr. Prudhomme was named as the policyholder. In allowing the deduction under TA s. 176.6 (similar to ITA s. 20(1)(e.2),) Richard JCQ found that in substance Nolinor was the policyholder.