Public Consultation: Draft Legislative Proposals on the Conversion of Health and Welfare Trusts

The Department of Finance has launched public consultations relating to legislative proposals supporting the conversion of Health and Welfare trusts.

Budget 2018 proposed that legislative provisions be introduced to convert the Health and Welfare Trusts that allow Canadian employers to provide benefits to their employees into Employee Life and Health Trusts. This means that there will only be one set of tax rules that would apply to these arrangements after 2020. Having one set of tax rules will help reduce redundancy and provide greater certainty for taxpayers.

In support of this legislation, the Department of Finance has released draft legislative proposals that would facilitate the conversion of existing Health and Welfare Trusts into Employee Life and Health Trusts and amend the existing Employee Life and Health Trust tax rules to allow what are currently Health and Welfare Trust arrangements to continue to operate in a manner similar to that in which they currently operate.

Consultations will end on July 31, 2019. You can send your comments to This email address is being protected from spambots. You need JavaScript enabled to view it. or mail them to this address:

Tax Policy Branch
Department of Finance Canada
90 Elgin Street Ottawa, Ontario
K1A 0G5

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