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Tabitha Tantrum (she/her) and her business partner, Chris (them/they), run a company called Multimedia Inc Pty Ltd together. Chris is the creative brain behind Multimedia
- Tabitha Tantrum (she/her) and her business partner, Chris (them/they), run a company called Multimedia Inc Pty Ltd together. Chris is the creative brain behind Multimedia Inc. Pty Ltd. The business has taken out a life and total and permanent disability (TPD) insurance policy on Chriss life so that if they died or became permanently disabled the business would be able to hire someone to carry on the creative side of the business while a new long-term manager is found. Multimedia Inc. Pty Ltd owns the insurance policy and pays the premiums which are claimed as a tax deduction. Two months later, Chris has an accident that tragically kills them. Multimedia Inc. Pty Ltd receives the proceeds of the Life insurance policy.
Discuss the tax treatment of the proceeds of this policy.
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