For Building, Accessing, and Transferring Corporate Wealth
Turn corporate capital into a system that grows tax-sheltered, compounds uninterrupted, and flows efficiently to you and your estate.
1 Most Corporate Investment Strategies Are Tax-Inefficient
Passive income can be taxed as high as 43–51%
Annual taxation slows compounding
Accessing funds personally triggers another layer of tax
2 What If Your Corporate Capital Could Grow… Without Tax Drag?
Grow capital tax-sheltered
Avoid annual taxation
Access funds without triggering income
Transfer wealth tax-efficiently
3 Tax Treatment & Growth
4 Benefits of Corporate Ownership of the Policy
Corporate dollars fund premiums: Uses lower-tax corporate earnings rather than higher-tax personal income
Avoids shareholder withdrawal taxes: No need to pay dividends or salary first to fund premiums
Tax paid once: Funds are taxed at the corporate level only, not again personally to fund the policy
Zero passive income tax drag: Growth inside the policy avoids the 43–51% tax on corporate passive investment income
Estate Benefits
Death benefit paid to corporation tax-free
CDA credit allows tax-free dividends to heirs/shareholders
Provides liquidity for estate taxes or corporate share redemption
5 Corporate IRP (Insured Retirement Plan) Strategy Create Tax-Efficient Retirement Income
Retirement Income Strategy
Cash value used as collateral for third-party bank loans
Policyholder borrows against the policy instead of withdrawing funds
This allows the cash value to continue compounding uninterrupted, increasing its base for higher compounding
Borrowed funds are not taxable income
Retirement Income Flow
Bank loan provides tax-efficient retirement income
Loan balance is repaid from the death benefit at death
Remaining proceeds flow tax-efficiently to beneficiaries via CDA
6 Role of Corporate Guarantee Fees Turn Corporate Risk Into Corporate Income
The corporation guarantees the shareholder’s bank loan secured by the policy
Shareholder pays the corporation a reasonable guarantee (consideration) fee
Fee reflects fair market value compensation for corporate risk
Benefits
Avoids potential shareholder benefit issues under ITA s.15
Creates taxable income inside the corporation in exchange for the guarantee
Provides documented commercial rationale for the structure
Helps demonstrate an arm’s-length style financial arrangement
7 Key Strategic Outcome .. What This Actually Does for You
Tax-sheltered capital growth
Capital rows tax-advantaged inside the policy
Reduced passive income tax
Avoids the 43-51% tax on corporate passive investments
Tax-efficient retirement income
Access cash value through loans without triggering taxable income
Estate liquidity and tax-free wealth transfer
Tax-free death benefit credited to CDA for tax-efficient distribution
Corporate compensation via guarantee fees
Guarantee fees create corporate income and supports arm’s-length commercial structure
This Isn't Just Insurance
It’s a system that allows your corporate capital to:
Build it. Use it. Pass it on. - all without losing control to tax
