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A company has requested clarification regarding the tax treatment of a mixed life insurance policy for its Chairman. The DGT indicates that if the company's waiver of redemption rights becomes unconditional, it results in a benefit in kind for the insured individual.
Executives and companies must be aware that unconditional waivers of insurance redemption rights by an employer can trigger personal income tax liabilities for the employee as a benefit in kind.
The tax team reviews your specific situation.
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