Would the acquisition by a life insurance salesperson of a policy on the life of the salesperson’s spouse or children or parents (father and mother), of which the salesperson would be the holder and for which he or she would be required to pay the required premiums in respect of that policy, make the commissions received taxable? After noting various qualifications, CRA responded:
[W]here a seller of life insurance acquires a policy on the life of the seller or the seller's spouse, common-law partner or dependent child and receives a commission on that policy, the commission would generally not be taxable provided the seller holds the policy and is required to pay the premiums on that policy. The fact that someone other than the policy holder is named as the beneficiary of the policy would generally not change this position.