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Although certain long-term disability (LTD) policies provide benefits that are taxable, partial indemnity costs for the recovery of these benefits should not attract a tax liability as they are insurance benefits rather than employment income, Toronto personal injury lawyer Paul Cahill writes in The Lawyers Weekly.

http://www.advocatedaily.com/paul-cahill-costs-paid-for-ltd-claim-should-not-attract-tax-liability.html