Revised legislative proposals from Canada’s Finance Department outline rules for transitioning the Health and Welfare Trusts (HWTs) that allow employers to provide benefits to their employees — to Employee Life and Health Trusts (ELHTs). This follows a consultation process in 2019. Final legislation is expected “at an early opportunity.” The proposals would:
Budget 2018 originally announced that the Canada Revenue Agency (CRA) would no longer apply its administrative rules with respect to HWTs after the end of 2020. The Department of Finance Canada and the CRA extended this date until the end of 2021.