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PDF version Dear Broker,
Effective July 1, 2017, Clients with international tax status purchasing a Whole Life Insurance policy with cash value through Canada Protection Plan are required to provide a “Declaration of Tax Residence”.
This is a requirement under Canadian law which obligates financial institutions to provide certain information to the Canada Revenue Agency (CRA), which in turn transfers that information to the applicable international tax agencies. We will not settle applications for Clients with international tax status without the completed Declaration of Tax Residence form.
A "Declaration of Tax Residence" certifies the policy holder’s country of tax residence and includes their TIN(s) and date of birth. Please refer to the below applicable CRA form RC520 - Declaration of Tax Residence for Individuals – Part XIX of the Income Tax Act or RC521 - Declaration of Tax Residence for Entities – Part XIX of the Income Tax Act.
The declaration will also be required for certain inforce policy forms such as conversions and change of owner. Links to the forms are below.
http://www.cra-arc.gc.ca/E/pbg/tf/rc520/rc520-17e.pdf
http://www.cra-arc.gc.ca/E/pbg/tf/rc521/rc521-17e.pdf
Please send all executed “Declaration of Tax Residence” forms to Canada Protection Plan Head Office along with the application or email us at newbusiness@cpp.ca.
Financial institutions cannot provide advice about tax residency to clients. If your Client is unsure about their tax residency status, they should consult a tax advisor.
Reference Material & Forms:
http://www.cpp.ca/advisors/advisor-support-reference-material-forms/
