On January 24, 2017, Canada Revenue Agency (CRA) issued an Advance Tax Ruling (ATR) to McKellar Structured Settlements’ Legal Department confirming that pre-settlement interest in Statutory Accident Benefits (SABS) cases can be structured.

Prior to the receipt of this favourable Ruling, SABS interest could not be structured. In the past, claimants who received a settlement or award that included SABS interest were forced to take the SABS interest component as a lump sum or risk tainting the tax compliance of their structure. The investment of that lump sum then resulted in income tax liability and the potential loss of income-tested government benefits. As of the date of this Ruling, SABS interest can now be structured on a guaranteed, tax-free basis.

As Canada's largest and oldest structured settlement provider, McKellar Structured Settlements has unparalleled expertise in the industry. With more than 40 people on staff, including our in-house lawyers, a Chartered Accountant, an innovative Brokerage department, and a large group of outstanding Structure Analysts, McKellar has the resources necessary to ensure that every file is treated as if it were our only file.

If you have questions about the impact of this Ruling on a current matter or would like more information, please contact McKellar at info@mckellar.com or call us at 1-800-265-8381.