What can a real-life case teach us about non-arms length employees, IRBs, and deductibility?

July 31, 2019 BDO CANADA

On January 4, 2013, an employee of a restaurant owned by her mother endured a motor vehicle accident that left her unable to work for a period of time, even though she continued to receive her regular pay. With the parent claiming this pay was a gift, Aviva Insurance Canada classified it as post-accident income and deducted accordingly from the employees income replacement benefits (IRB).

The dispute over classification of money received from an employer post-accident forms the basis of a complicated case and some key learnings including:

  • What constitutes a monetary "gift" between employer and employee
  • The relevance of whether or not an employer has a disability policy in place
  • How Temporary Disability benefits are defined
  • When payments can and cannot be considered Other Income Replacement Assistance
  • How the adjudicator in this case made their judgement

Download the article

Previous Article
Know Your Worth: How To Value An Insurance Brokerage
Know Your Worth: How To Value An Insurance Brokerage

Learn how to understand the worth of your insurance brokerage, including key business valuation factors.

Next Article
Know your worth: How to value a trucking company
Know your worth: How to value a trucking company

Obtaining an accurate business valuation is essential for any owner of a trucking company.

Are you looking for a cloud solution that optimizes your business?

Learn more