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Legal Terms

Terms & Conditions

1. In line with section 248(1) of the Canadian Income Tax Act, Kibono establishes a PHSP (also known as health care spending account, private health services plan, or cost-plus program) with said Company/Individual. Kibono agrees to indemnify the covered member/members of the planholder for all eligible medical expenses covered under the plan. Company/Individual agrees to fund the plan for the agreed upon fee (Admin fee payable is calculated on the total claim amount) and Kibono agrees to remit and record all taxes paid on your part to meet the necessary requirements to turn medical expenses into a tax-deductible business expense within the limits Company/Individual created. Business accounts are required to pay Kibono the total claimed amount plus all taxes and admin fee payable. Individuals (Sole Proprietors) will only be required to pay the taxes and admin fee payable to Kibono as no reimbursement for the claim amount will be made.

2. Kibono plans apply to all eligible medical expenses as defined in subsection 118.2(2) of the Canadian Income Tax Act. A list of those eligible expenses can be found here

3. Kibono plans include all covered employees as added by Company/Individual who are considered “claimants”. The term “claimant” includes the employee, employees spouse, or any member of their household with whom the employee is connected by blood relationship, marriage, or adoption.

4. Company/Individual has established a start date being the date in which legal terms have been read and checkbox is agreed to and which will end in 12 months and renewed accordingly. Each eligible employee can submit claims for this period and Company/Individual can produce a tax deduction slip for any period selected in your profile that coincides to your own tax-year.

5. If Incorporated - Each member of Company can be offered different limits under the plan based on metrics decided by you. Kibono plans are there for the benefit of your AND your employees, therefore, you (as in Company) cannot limit participation in the plan based solely on their position as a shareholder. Classes (and the class breakdown should be shown) can have different limits based on the metrics you decide however, you cannot discriminate between individuals in the same class.

6. Kibono will adjudicate all claims and remit all necessary taxes (2% Ontario Premium Tax, 8% RST) to satisfy the necessary requirements for an income tax deduction. For Business Accounts, Kibono will issue a reimbursement payment for the total cost of the eligible expenses to the claimant/s.

7. Kibono offers an audit function (free feature) whereby Kibono will request electronic evidence for the claim submitted by the claimant/s (ie. invoices, payment, doctor's notes etc.) Kibono will use professional judgement to ensure the support reconciles to the claim submitted.
Kibono will not be held responsible for any fraudulent claims submitted and processed regardless if an audit (by Kibono) was conducted.
A Kibono audit only provides the Company/Individual with a reasonable amount of assurance that the claim support provided, reconciles to the claim submitted. Not whether the claim is ultimately legitimate or not.
Should the Canada Revenue Agency (CRA) conduct an audit of the Company or Individual, Kibono will not be held responsible for any unsupported claims or the overall outcome of their (CRA) audit.

For Sole Proprietors

1. The individual must be actively engaged alone or as a partner in business.

2. Self-employment must be the individual’s primary source of income in the year (more than 50 per cent) or income from other sources cannot exceed $10,000.

3. Equivalent PHSP coverage must be extended to all full-time arm’s-length employees; this normally means non-family members. Anti-avoidance rules will ensure that this condition cannot be avoided by using a management company to hire employees.

4. PHSP contributions will be deductible to a maximum of $1,500 for a qualified applicant and $1,500 for their spouse. There is an additional amount of $750 available per child. However, if the child is attending a recognized educational institution, their limits will be raised to $1,500 from age 18 to 25 (If this is the case, you must choose "Adult" instead of "Child" in order to access the $1,500 limit instead of the standard $750 child limit.) These limits are exclusive of fees/taxes. This is an actual family limit and not attributed per individual family member.

5. PHSP costs will be deductible only if the plan is purchased from a third party in the business of selling insurance or if the plan is operated by a trustee who is in the business of operating such plans.

6. Where a deduction for PHSP cost is claimed, the amount will not also qualify for medical expense tax credits. The benefits for the average business owner are best shown through the following examples: Taxpayers in the 26 per cent federal tax bracket (based on the 1996 B.C. tax form) would have to earn $167.52 before paying a S100 medical or dental expense. Taxpayers in the 29 per cent federal tax bracket would have to earn $203.79 before paying the same S100 expense.

7. Kibono offers an audit function (free feature) whereby Kibono will request electronic evidence for the claim submitted by the claimant/s (ie. invoices, payment, doctor's notes etc.) Kibono will use professional judgement to ensure the support reconciles to the claim submitted.
Kibono will not be held responsible for any fraudulent claims submitted and processed regardless if an audit (by Kibono) was conducted.
A Kibono audit only provides the Company/Individual with a reasonable amount of assurance that the claim support provided, reconciles to the claim submitted. Not whether the claim is ultimately legitimate or not.
Should the Canada Revenue Agency (CRA) conduct an audit of the Company or Individual, Kibono will not be held responsible for any unsupported claims or the overall outcome of their (CRA) audit.

Privacy

1. Kibono receives and stores all information on Amazon Web Service servers and Heroku cloud platforms which are secured under their own respective security policies. Please refer to their websites for additional understanding of their data and security policies.

2. Kibono will have access to email addresses, mailing/billing addresses and any claim data (service date, type of claim (medical, dental, vision, drug), amount and name of claimant) submitted to us. In addition, Kibono will have access to any documents submitted to us as part of an audit request. Kibono will ensure all data remains private and will not be distributed or sold to any third party without the consent of the owner/Company or individual themselves.