Tax questions? You ask lah! #64

Published: Wed, 03/02/22

Tax questions? You ask lah!

Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!

Andy has received insurance compensation from insurance company due to a car accident. He has no income since accident happened, now he wants to use the compensation money to buy a car. Will he be taxed for buying a car with the compensation money?

A:
No, it is not taxable as this compensation is capital in nature and is not considered as an income.

Is it required to declare medical insurance premium paid by the company in staff’s Form EA?

A:
It depends on who is the policy owner of this medical insurance. If the policy owner is the company then it needs not to be included in the Form EA. If the staff is the policy owner, then it needs to be included in the Form EA as perquisite of the staff.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

P.S. I've received a lot of tax questions, so now I am answering the frequently asked questions and sharing them with you weekly!

P.P.S. Do you want more tax saving tips? Because this is just the tip of the iceberg. Join my FREE tax livestream @ https://bit.ly/zen-taxlive

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