VIII, s. 121, c. 21, s. 941998, c. 19, s. 2122014, c. 39, s. 62
207.61(1)A custodian of a retirement compensation arrangement shall pay a tax under this Part for a calendar year if, at any time in the year,(a)the arrangement acquires property that is a prohibited investment for the arrangement; or(b)subject property of the arrangement becomes a prohibited investment for the arrangement after March 29, 2012.Marginal note:Amount of tax payable(2)The amount of tax payable in respect of each property described in subsection (1) is 50% of the fair market value of the property at the time referred to in that subsection.Marginal note:Refund(3)If in a calendar year an RCA trust disposes of a property in respect of which a tax is imposed under subsection (1) on the custodian of the retirement compensation arrangement, the custodian is entitled to a refund for the year of an amount equal to(a)the amount of the tax so imposed, unless paragraph (b) applies; or(b)nil,(i)if it is reasonable to consider that the custodian, or a specified beneficiary of the arrangement, knew, or ought to have known, at the time the property was acquired by the arrangement, that it was, or would become, a property described in subsection (1), or(ii)if the property is not disposed of by the arrangement before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.Marginal note:Deemed disposition and reacquisition(4)If, at any time, a property held by an RCA trust ceases to be, or becomes, a prohibited investment for the RCA trust, the RCA trust is deemed to have disposed of the property immediately before that time for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired the property at that time at a cost equal to that fair market value.
(a)the arrangement acquires property that is a prohibited investment for the arrangement; or(b)subject property of the arrangement becomes a prohibited investment for the arrangement after March 29, 2012.
(a)the amount of the tax so imposed, unless paragraph (b) applies; or(b)nil,(i)if it is reasonable to consider that the custodian, or a specified beneficiary of the arrangement, knew, or ought to have known, at the time the property was acquired by the arrangement, that it was, or would become, a property described in subsection (1), or(ii)if the property is not disposed of by the arrangement before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
(i)if it is reasonable to consider that the custodian, or a specified beneficiary of the arrangement, knew, or ought to have known, at the time the property was acquired by the arrangement, that it was, or would become, a property described in subsection (1), or(ii)if the property is not disposed of by the arrangement before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 45
207.62(1)A custodian of a retirement compensation arrangement shall pay a tax under this Part for a calendar year if, in the year, an advantage in relation to the arrangement is extended to, or is received or receivable by, an RCA trust under the arrangement, a specified beneficiary of the arrangement or any person who does not deal at arm’s length with the specified beneficiary.Marginal note:Amount of tax payable(2)The amount of tax payable in respect of an advantage described in subsection (1) is(a)in the case of a benefit, the fair market value of the benefit;(b)in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and(c)in the case of an RCA strip, the amount of the RCA strip.
(a)in the case of a benefit, the fair market value of the benefit;(b)in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and(c)in the case of an RCA strip, the amount of the RCA strip.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 45
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 45
(a)whether the tax arose as a consequence of reasonable error; and(b)the extent to which the transaction or event or series of transactions or events that gave rise to the tax also gave rise to another tax under this Act.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 45
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 45
207.7(1)Every custodian of a retirement compensation arrangement shall pay a tax under this Part for each taxation year of an RCA trust under the arrangement equal to the amount, if any, by which the refundable tax of the arrangement at the end of the year exceeds the refundable tax of the arrangement at the end of the immediately preceding taxation year, if any.Marginal note:Refund(2)Where the custodian of a retirement compensation arrangement has filed a return under this Part for a taxation year within three years after the end of the year, the Minister(a)may, on sending the notice of assessment for the year or a notification that no tax is payable for the year, refund without application an amount equal to the amount, if any, by which the refundable tax of the arrangement at the end of the immediately preceding year exceeds the refundable tax of the arrangement at the end of the year; and(b)shall, with all due dispatch, make such a refund after sending the notice of assessment if application for it has been made in writing by the custodian within three years after the day of sending of a notice of an original assessment for the year or of a notification that no tax is payable for the year.Marginal note:Payment of tax(3)Every custodian of a retirement compensation arrangement shall, within 90 days after the end of each taxation year of an RCA trust under the arrangement,(a)file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;(b)estimate in the return the amount of tax, if any, payable by the custodian under this Part for the year; and(c)pay to the Receiver General the amount of tax, if any, payable by the custodian under this Part for the year.Marginal note:Provisions applicable to Part(4)Subsections 150(2) and 150(3), sections 152 and 158, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require.
(a)may, on sending the notice of assessment for the year or a notification that no tax is payable for the year, refund without application an amount equal to the amount, if any, by which the refundable tax of the arrangement at the end of the immediately preceding year exceeds the refundable tax of the arrangement at the end of the year; and(b)shall, with all due dispatch, make such a refund after sending the notice of assessment if application for it has been made in writing by the custodian within three years after the day of sending of a notice of an original assessment for the year or of a notification that no tax is payable for the year.
(a)file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;(b)estimate in the return the amount of tax, if any, payable by the custodian under this Part for the year; and(c)pay to the Receiver General the amount of tax, if any, payable by the custodian under this Part for the year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1987, c. 46, s. 622010, c. 25, s. 63
207.8(1)In this Part,excess EPSP amount, of a specified employee for a taxation year in respect of an employer, means the amount determined by the formulaA – (20% × B)whereAis the portion of the total of all amounts paid by the employer of the specified employee (or by a corporation with which the employer does not deal at arm’s length) to a trust governed by an employees profit sharing plan that is allocated for the year to the specified employee; andBis the specified employee’s total income for the year from an office or employment with the employer computed without reference to paragraph 6(1)(d) and sections 7 and 8.Marginal note:Tax payable(2)If a specified employee has an excess EPSP amount for a taxation year, the specified employee shall pay a tax for the year equal to the amount determined by the formula(A + B) × CwhereAis the highest individual percentage for the year;Bis(a)if the specified employee is resident in Quebec at the end of the year, 0%,(b)if the specified employee is resident in a province other than Quebec at the end of the year, the highest percentage rate of tax, including surtaxes but not taxes that are limited to a maximum amount, imposed by the province for the year on the income of an individual who is a resident of the province, or(c)in any other case, 14%; andCis the total of all excess EPSP amounts of the specified employee for the year.Marginal note:Waiver or cancellation(3)If a specified employee would otherwise be liable to pay a tax under subsection (2), the Minister may waive or cancel all or part of the liability if the Minister considers it just and equitable to do so having regard to all the circumstances.Marginal note:Return and payment of tax(4)Every person who is liable to pay tax under this Part for a taxation year shall(a)on or before the person’s filing-due date for the year, file with the Minister a return for the year under this Part in prescribed form and containing prescribed information; and(b)on or before the person’s balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by the person for the year.Marginal note:Provisions applicable to this Part(5)Subsections 150(2) and (3), sections 152, 155 to 156.1, 158 to 160.1, 161 and 161.2 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.
(a)if the specified employee is resident in Quebec at the end of the year, 0%,(b)if the specified employee is resident in a province other than Quebec at the end of the year, the highest percentage rate of tax, including surtaxes but not taxes that are limited to a maximum amount, imposed by the province for the year on the income of an individual who is a resident of the province, or(c)in any other case, 14%; and
(a)on or before the person’s filing-due date for the year, file with the Minister a return for the year under this Part in prescribed form and containing prescribed information; and(b)on or before the person’s balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by the person for the year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2012, c. 31, s. 462016, c. 7, s. 62
207.9(1)The following definitions apply in this Part.participating employerparticipating employerof an employee life and health trust means an employer that provides designated employee benefits for its employees through a trust that meets the conditions described in subsection 144.1(2). (employeur participant)prohibited investmentprohibited investment, at any time for an employee life and health trust, means property that is at that time(a)a share of the capital stock of, an interest in or a debt of(i)a participating employer of the employee life and health trust, or(ii)a person or partnership that does not deal at arm’s length with a participating employer of the employee life and health trust; or(b)an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a). (placement interdit)Marginal note:Tax payable on prohibited investment(2)A trust shall pay a tax under this Part for a calendar year if, at any time in the year while the trust is an employee life and health trust,(a)the trust acquires property that is a prohibited investment for the trust; or(b)income is received or becomes receivable by the trust from, or the trust has a taxable capital gain from the disposition of, a prohibited investment for the trust.Marginal note:Amount of tax payable(3)The amount of tax payable under subsection (2) is(a)if paragraph (2)(a) applies, 50% of the fair market value of the property at the time it is acquired; and(b)if paragraph (2)(b) applies, 50% of the income or the taxable capital gain.Marginal note:Refund(4)If in a calendar year a trust disposes of a property in respect of which a tax is imposed on the trust under subsection (2), the trust is entitled to a refund for the year of an amount equal to(a)the amount of the tax so imposed, unless paragraph (b) applies; or(b)nil, if(i)it is reasonable to consider that the trustees knew, or ought to have known, at the time the property was acquired that it was, or would become, a property described in subsection (2), or(ii)the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.Marginal note:Deemed disposition and reacquisition(5)If, at any time, a property held by an employee life and health trust ceases to be, or becomes, a prohibited investment for the employee life and health trust, the employee life and health trust is deemed to have disposed of the property immediately before that time for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired the property at that time at a cost equal to that fair market value.
(a)a share of the capital stock of, an interest in or a debt of(i)a participating employer of the employee life and health trust, or(ii)a person or partnership that does not deal at arm’s length with a participating employer of the employee life and health trust; or(b)an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a). (placement interdit)
(i)a participating employer of the employee life and health trust, or(ii)a person or partnership that does not deal at arm’s length with a participating employer of the employee life and health trust; or
(a)the trust acquires property that is a prohibited investment for the trust; or(b)income is received or becomes receivable by the trust from, or the trust has a taxable capital gain from the disposition of, a prohibited investment for the trust.
(a)if paragraph (2)(a) applies, 50% of the fair market value of the property at the time it is acquired; and(b)if paragraph (2)(b) applies, 50% of the income or the taxable capital gain.
(a)the amount of the tax so imposed, unless paragraph (b) applies; or(b)nil, if(i)it is reasonable to consider that the trustees knew, or ought to have known, at the time the property was acquired that it was, or would become, a property described in subsection (2), or(ii)the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
(i)it is reasonable to consider that the trustees knew, or ought to have known, at the time the property was acquired that it was, or would become, a property described in subsection (2), or(ii)the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2021, c. 23, s. 50
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 2081994, c. 7, Sch