Premiums to be Paid by a Corporation on the Life Insurance Policy

November 10, 1960 BIR RULING NO. 538-60 Mr. R. J. Gurbuxani 355-357 Juan Luna St. Cebu City S i r : In reply to the query contained in your letter dated October 11, 1960, I have the honor to inform you that the premiums to be paid by your corporation on the life insurance policy covering your life with your wife as the beneficiary are not deductible from the gross income of the corporation, pursuant to Section 31(s)(4) of the Tax Code, it being shown that the corporation is a family corporation and the same is indirectly the beneficiary under such policy. The proceeds thereof paid to the beneficiary upon the death of the insured are not taxable. (Section 29(b)(1), Tax Code). cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue