Deductibility of the Premiums Paid on the Lives of Corporate President or "Key Men"

July 28, 1959 BIR RULING NO. 357-59 Mr. Angel O. Dao Binakayan, Kawit Cavite S i r : With reference to your letter dated June 2, 1959, I have the honor to inform you that premiums paid by a corporation for the insurance of the lives of its president or "key men" are deductible from the gross income for income tax purposes where the members of the families of said president or "key men" are the irrevocable beneficiaries under the policies. However, in a family corporation where the beneficiaries named are members of their respective families and, are also stockholders of the corporation, the premiums paid by the latter on the life insurance policies of its president or "key men" are not deductible, the corporation being indirectly the beneficiaries of the policies. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue