TriStar Industries was recently denied the deduction of the life insurance premiums on the life insurance policies of their key executives on its most recent tax return.Which of the following general limitations to business profit determination best describes the reason for the Canada Revenue Agency's decision?

Question

Quizplus · Accepted Answer

The exempt-income test is likely the reason for the denial, as life insurance premiums are not deductible when the proceeds are not taxable, which is typically the case for key executive policies.

TriStar Industries Was Recently Denied the Deduction of the Life