Warning: The CRA has identified aggressive tax schemes involving insurance products

The Canada Revenue Agency (CRA) is warning Canadians about certain financial arrangements involving critical illness insurance that may be designed to avoid paying taxes. These arrangements often involve complex transactions, like borrowing money and using it to pay for insurance, which can mislead taxpayers and result in serious tax consequences. The CRA has previously issued warnings about similar schemes including those involving Offshore Disability Insurance Plan and Offshore Leveraged Insured Annuity