VIII, s. 84, c. 21, s. 711998, c. 19, s. 1712000, c. 12, ss. 136, 1422001, c. 17, s. 1412003, c. 15, s. 832007, c. 29, s. 192009, c. 2, s. 542011, c. 24, s. 492012, c. 31, s. 342013, c. 34, s. 3002015, c. 36, s. 152020, c. 5, s. 42021, c. 23, s. 322022, c. 19, s. 30
146.4(1)The following definitions apply in this section.assistance holdback amountassistance holdback amount, in relation to a disability savings plan, has the meaning assigned under theCanada Disability Savings Act. (montant de retenue)contributioncontributionto a disability savings plan does not include (other than for the purpose of paragraph (b) of the definitiondisability savings plan)(a)an amount paid into the plan under or because of theCanada Disability Savings Actor a designated provincial program;(b)an amount paid into the plan under or because of any other program that has a similar purpose to a designated provincial program and that is funded, directly or indirectly, by a province (other than an amount paid into the plan by an entity described in subparagraph (a)(iii) of the definitionqualifying personin its capacity as holder of the plan);(c)an amount transferred to the plan in accordance with subsection (8); or(d)other than for the purposes of paragraphs (4)(f) to (h) and (n),(i)a specified RDSP payment as defined in subsection 60.02(1), or(ii)an accumulated income payment made to the plan under subsection 146.1(1.2). (cotisation)designated provincial programdesignated provincial programmeans a program that is established under the laws of a province and that supports savings in registered disability savings plans. (programme provincial désigné)disability assistance paymentdisability assistance payment, in relation to a disability savings plan of a beneficiary, means any payment made from the plan to the beneficiary or to the beneficiary’s estate. (paiement d’aide à l’invalidité)disability savings plandisability savings planof a beneficiary means an arrangement(a)between(i)a corporation (in this definition referred to as the “issuer”)(A)that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and(B)with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of theCanada Disability Savings Act, and(ii)one or more of the following:(A)the beneficiary,(B)an entity that, at the time the arrangement is entered into, is a qualifying person described in paragraph (a) or (b) of the definitionqualifying personin relation to the beneficiary,(B.1)if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,(B.2)a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and(C)a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;(b)under which one or more contributions are to be made in trust to the issuer to be invested, used or otherwise applied by the issuer for the purpose of making payments from the arrangement to the beneficiary; and(c)that is entered into in a taxation year in respect of which(i)the beneficiary is a DTC-eligible individual, or(ii)the beneficiary is not a DTC-eligible individual and an amount is to be transferred from a registered disability savings plan of the beneficiary to the arrangement in accordance with subsection (8). (régime d’épargne-invalidité)DTC-eligible individualDTC-eligible individual, in respect of a taxation year, means an individual in respect of whom an amount is deductible, or would if this Act were read without reference to paragraph 118.3(1)(c) be deductible, under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year. (particulier admissible au CIPH)holderholderof a disability savings plan at any time means each of the following:(a)an entity that has, at that time, rights as an entity with whom the issuer entered into the plan;(b)an entity that has, at that time, rights as a successor or assignee of an entity described in paragraph (a) or in this paragraph; and(c)the beneficiary if, at that time, the beneficiary is not an entity described in paragraph (a) or (b) and has rights under the plan to make decisions (either alone or with other holders of the plan) concerning the plan, except where the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph (4)(n)(ii). (titulaire)issuerissuer, of an arrangement, means the person described as the “issuer” in the definitiondisability savings plan. (émetteur)lifetime disability assistance paymentslifetime disability assistance paymentsunder a disability savings plan of a beneficiary means disability assistance payments that are identified under the terms of the plan as lifetime disability assistance payments and that, after they begin to be paid, are payable at least annually until the earlier of the day on which the beneficiary dies and the day on which the plan is terminated. (paiements viagers pour invalidité)plan trustplan trust, in relation to a disability savings plan, means the trust governed by the plan. (fiducie de régime)qualified investmentqualified investment, for a trust governed by a RDSP, means(a)an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definitionqualified investmentin section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a RDSP” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”;(b)a contract for an annuity issued by a licensed annuities provider where(i)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and(ii)the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract;(c)a contract for an annuity issued by a licensed annuities provider where(i)annual or more frequent periodic payments are or may be made under the contract to the holder of the contract,(ii)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract,(iii)neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan,(iv)the day on which the periodic payments began or are to begin is not later than the end of the later of(A)the year in which the beneficiary under the plan attains the age of 60 years, and(B)the year following the year in which the contract was acquired by the trust,(v)the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years,(vi)the periodic payments(A)are equal, or(B)are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and(vii)the contract requires that, in the event the plan must be terminated in accordance with paragraph (4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and(d)a prescribed investment. (placement admissible)qualifying family memberqualifying family member, in relation to a beneficiary of a disability savings plan, at any time, means an individual who, at that time, is(a)a legal parent of the beneficiary; or(b)a spouse or common-law partner of the beneficiary who is not living separate and apart from the beneficiary by reason of a breakdown of their marriage or common-law partnership. (membre de la famille admissible)qualifying personqualifying person, in relation to a beneficiary of a disability savings plan, at any time, means(a)if the beneficiary has not, at or before that time, attained the age of majority, an entity that is, at that time,(i)a legal parent of the beneficiary,(ii)a guardian, tutor, curator or other individual who is legally authorized to act on behalf of the beneficiary, or(iii)a public department, agency or institution that is legally authorized to act on behalf of the beneficiary;(b)if the beneficiary has, at or before that time, attained the age of majority and is not, at that time, contractually competent to enter into a disability savings plan, an entity that is, at that time, an entity described in subparagraph (a)(ii) or (iii); and(c)other than for the purposes of subparagraph (4)(b)(iv), an individual who is a qualifying family member in relation to the beneficiary if(i)at or before that time, the beneficiary has attained the age of majority and is not a beneficiary under a disability savings plan,(ii)at that time, no entity described in subparagraph (a)(ii) or (iii) is legally authorized to act on behalf of the beneficiary, and(iii)in the issuer’s opinion after reasonable inquiry, the beneficiary’s contractual competence to enter into a disability savings plan at that time is in doubt. (responsable)registered disability savings planregistered disability savings planorRDSPmeans a disability savings plan that satisfies the conditions in subsection (2), but does not include a plan to which subsection (3) or (10) applies. (régime enregistré d’épargne-invaliditéouREEI)specified maximum amountspecified maximum amount, for a calendar year in respect of a disability savings plan, means the amount that is the greater of(a)the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year, and(b)the amount determined by the formulaA + BwhereAis 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definitionqualified investment), andBis the total of all amounts each of which is(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investment) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year. (plafond)specified Ministerspecified Ministermeans the minister designated under section 4 of theCanada Disability Savings Act. (ministre responsable)specified yearspecified year, for a disability savings plan of a beneficiary means the particular calendar year in which a medical doctor or a nurse practitioner licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor or the nurse practitioner, the beneficiary is not likely to survive more than five years and(a)if the plan is a specified disability savings plan, each subsequent calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan; or(b)in any other case, each of the five calendar years following the particular calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan. (année déterminée)Marginal note:Specified disability savings plan(1.1)If, in respect of a beneficiary under a registered disability savings plan, a medical doctor or a nurse practitioner licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor or the nurse practitioner, the beneficiary is not likely to survive more than five years, the holder of the plan elects in prescribed form and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan, and the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister, then the plan becomes a specified disability savings plan at the time the notification is received by the specified Minister.Marginal note:Ceasing to be a specified disability savings plan(1.2)A plan ceases to be a specified disability savings plan at the earliest of the following times:(a)the time that the specified Minister receives a notification, in a manner and format acceptable to the specified Minister, from the issuer of the plan that the holder elects that the plan is to cease to be a specified disability savings plan;(b)the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or such greater amount as is required to satisfy the condition in subparagraph (d)(i));(c)the time that is immediately before the time that(i)a contribution is made to the plan,(ii)an amount described in any of paragraphs (a) and (b) and subparagraph (d)(ii) of the definitioncontributionin subsection (1) is paid into the plan,(iii)the plan is terminated,(iv)the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a), or(v)is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1); and(d)the time immediately following the end of a calendar year if(i)in the year the total amount of disability assistance payments made from the plan to the beneficiary is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the year (or such lesser amount as is supported by the property of the plan), and(ii)the year is not the calendar year in which the plan became a specified disability savings plan.(e) and (f)[Repealed, 2012, c. 31, s. 35]Marginal note:Waiting period(1.3)If at any time, a plan has ceased to be a specified disability savings plan because of subsection (1.2), then the holder of the plan may not make an election under subsection (1.1) until 24 months after that time.Marginal note:Waiver(1.4)The Minister may waive the application of subsections (1.2) or (1.3) if it is just and equitable to do so.Marginal note:Beneficiary replacing holder(1.5)Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definitionqualifying personin subsection (1) ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if(a)the beneficiary is determined to be contractually competent by a competent tribunal or other authority under the laws of a province or, in the issuer’s opinion after reasonable inquiry, the beneficiary’s contractual competence to enter into a disability savings plan is no longer in doubt; and(b)the beneficiary notifies the issuer that the beneficiary chooses to become the holder of the plan.Marginal note:Entity replacing holder(1.6)If an entity described in subparagraph (a)(ii) or (iii) of the definitionqualifying personin subsection (1) is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of that definition,(a)the entity shall notify the issuer without delay of the entity’s appointment;(b)the holder of the plan ceases to be a holder of the plan; and(c)the entity becomes the holder of the plan.Marginal note:Rules applicable in case of dispute(1.7)If a dispute arises as a result of an issuer’s acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definitionqualifying personin subsection (1) as a holder of a disability savings plan, from the time the dispute arises until the time that the dispute is resolved or an entity becomes the holder of the plan under subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan.Marginal note:Registered status(2)The conditions that must be satisfied for a disability savings plan of a beneficiary to be a registered disability savings plan are as follows:(a)before the plan is entered into, the issuer of the plan has received written notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4);(b)at or before the time the plan is entered into, the issuer of the plan has been provided with the Social Insurance Number of the beneficiary and the Social Insurance Number or business number, as the case may be, of each entity with which the issuer has entered into the plan; and(c)at the time the plan is entered into, the beneficiary is resident in Canada, except that this condition does not apply if, at that time, the beneficiary is the beneficiary under another registered disability savings plan.Marginal note:Registered status nullified(3)A disability savings plan is deemed never to have been a registered disability savings plan unless(a)the issuer of the plan provides without delay notification of the plan’s establishment in prescribed form containing prescribed information to the specified Minister; and(b)if the beneficiary is the beneficiary under another registered disability savings plan at the time the plan is established, that other plan is terminated without delay.Marginal note:Plan conditions(4)The conditions referred to in paragraph (2)(a) are as follows:(a)the plan stipulates(i)that it is to be operated exclusively for the benefit of the beneficiary under the plan,(ii)that the designation of the beneficiary under the plan is irrevocable, and(iii)that no right of the beneficiary to receive payments from the plan is capable, either in whole or in part, of surrender or assignment;(b)the plan allows an entity to acquire rights as a successor or assignee of a holder of the plan only if the entity is(i)the beneficiary,(ii)the beneficiary’s estate,(iii)a holder of the plan at the time the rights are acquired,(iv)a qualifying person in relation to the beneficiary at the time the rights are acquired, or(v)an individual who is a legal parent of the beneficiary and was previously a holder of the plan;(c)the plan provides that, where an entity (other than a qualifying family member in relation to the beneficiary) that is a holder of the plan ceases to be a qualifying person in relation to the beneficiary at any time, the entity ceases at that time to be a holder of the plan;(d)the plan provides for there to be at least one holder of the plan at all times that the plan is in existence and may provide for the beneficiary (or the beneficiary’s estate, as the case may be) to automatically acquire rights as a successor or assignee of a holder in order to ensure compliance with this requirement;(e)the plan provides that, where an entity becomes a holder of the plan after the plan is entered into, the entity is prohibited (except to the extent otherwise permitted by the Minister or the specified Minister) from exercising their rights as a holder of the plan until the issuer has been advised of the entity having become a holder of the plan and been provided with the entity’s Social Insurance Number or business number, as the case may be;(f)the plan prohibits contributions from being made to the plan at any time if(i)the beneficiary is not a DTC-eligible individual in respect of the taxation year that includes that time, unless the contribution is a specified RDSP payment in respect of the beneficiary, or(ii)the beneficiary died before that time;(g)the plan prohibits a contribution from being made to the plan at any time if(i)the beneficiary attained the age of 59 years before the calendar year that includes that time,(ii)the beneficiary is not resident in Canada at that time, or(iii)the total of the contribution and all other contributions made at or before that time to the plan or to any other registered disability savings plan of the beneficiary would exceed $200,000;(h)the plan prohibits contributions to the plan by any entity that is not a holder of the plan, except with the written consent of a holder of the plan;(i)the plan provides that no payments may be made from the plan other than(i)disability assistance payments,(ii)a transfer in accordance with subsection (8), and(iii)repayments under theCanada Disability Savings Actor a designated provincial program;(j)the plan prohibits a disability assistance payment from being made if it would result in the fair market value of the property held by the plan trust immediately after the payment being less than the assistance holdback amount in relation to the plan;(k)the plan provides for lifetime disability assistance payments to begin to be paid no later than the end of the particular calendar year in which the beneficiary attains the age of 60 years or, if the plan is established in or after the particular year, in the calendar year following the calendar year in which the plan is established;(l)the plan provides that the total amount of lifetime disability assistance payments made in any calendar year (other than a specified year for the plan) shall not exceed the amount determined by the formulaA/(B + 3 - C) + DwhereAis the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definitionqualified investmentin subsection (1)),Bis the greater of 80 and the age in whole years of the beneficiary at the beginning of the calendar year,Cis the age in whole years of the beneficiary at the beginning of the calendar year, andDis the total of all amounts each of which is(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investmentin subsection (1)) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year;(m)the plan stipulates whether or not disability assistance payments that are not lifetime disability assistance payments are to be permitted under the plan;(n)the plan provides that when the total of all amounts paid under theCanada Disability Savings Actbefore the beginning of a calendar year to any registered disability savings plan of the beneficiary exceeds the total of all contributions made before the beginning of the calendar year to any registered disability savings plan of the beneficiary,(i)if the calendar year is not a specified year for the plan and the conditions in clauses (p)(ii)(A) and (B) are not met in the calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the specified maximum amount for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accordance with subsection (8) is to be disregarded if it is made(A)to satisfy an undertaking described in paragraph (8)(d), or(B)in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and(ii)if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year;(iii)[Repealed, 2012, c. 31, s. 35](n.1)the plan provides that, if the beneficiary attained the age of 59 years before a calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not be less than the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan trust);(o)the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust (or an amount equal to its value) to another registered disability savings plan of the beneficiary, together with all information in its possession (other than information provided to the issuer of the other plan by the specified Minister) that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Act and with any conditions and obligations imposed under theCanada Disability Savings Act; and(p)the plan provides for any amounts remaining in the plan (after taking into consideration any repayments under theCanada Disability Savings Actor a designated provincial program) to be paid to the beneficiary or the beneficiary’s estate, as the case may be, and for the plan to be terminated, by the end of the calendar year following the earlier of(i)the calendar year in which the beneficiary dies, and(ii)the first calendar year in which the following conditions are met:(A)the holder of the plan has requested that the issuer terminate the plan, and(B)throughout the year, the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).Marginal note:Transitional rule(4.01)If, after March 18, 2019 and before 2021, a registered disability savings plan would otherwise be required to be terminated because of subparagraph (4)(p)(ii) or any terms of the plan provided because of that subparagraph, then notwithstanding that subparagraph or those terms, the plan is not required to be terminated before 2021 in either of the following circumstances:(a)the beneficiary of the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1), or(b)an election was made under subsection (4.1), as it read immediately before 2021, and the election ceases to be valid after March 18, 2019 and before 2021 because of paragraph (4.2)(b), as it read immediately before 2021.(4.1)[Repealed, 2021, c. 23, s. 33](4.2)[Repealed, 2021, c. 23, s. 33](4.3)[Repealed, 2021, c. 23, s. 33]Marginal note:Trust not taxable(5)No tax is payable under this Part by a trust on the taxable income of the trust for a taxation year if, throughout the period in the year during which the trust was in existence, the trust was governed by a registered disability savings plan, except that(a)tax is payable under this Part by the trust on its taxable income for the year if the trust has borrowed money(i)in the year, or(ii)in a preceding taxation year and has not repaid it before the beginning of the year; and(b)if the trust is not otherwise taxable under paragraph (a) on its taxable income for the year and, at any time in the year, it carries on one or more businesses or holds one or more properties that are not qualified investments for the trust, tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or losses other than from dispositions of those properties, and for this purpose,(i)“income” includes dividends described in section 83, and(ii)paragraphs 38(a) and (b) are to be read as if the fraction set out in each of those paragraphs were replaced by the word “all”.Marginal note:Taxation of disability assistance payments(6)Where a disability assistance payment is made from a registered disability savings plan of a beneficiary, the amount, if any, by which the amount of the payment exceeds the non-taxable portion of the payment shall be included,(a)if the beneficiary is alive at the time the payment is made, in computing the beneficiary’s income for the beneficiary’s taxation year in which the payment is made; and(b)in any other case, in computing the income of the beneficiary’s estate for the estate’s taxation year in which the payment is made.Marginal note:Non-taxable portion of disability assistance payment(7)The non-taxable portion of a disability assistance payment made at a particular time from a registered disability savings plan of a beneficiary is the lesser of the amount of the disability assistance payment and the amount determined by the formulaA × B/C + DwhereAis the amount of the disability assistance payment;Bis the amount, if any, by which(a)the total of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiaryexceeds(b)the total of all amounts each of which is the amount that would be the non-taxable portion of a disability assistance payment made before the particular time from any registered disability savings plan of the beneficiary, if the formula in this subsection were read without reference to the description of D;Cis the amount by which the fair market value of the property held by the plan trust immediately before the payment exceeds the assistance holdback amount in relation to the plan; andDis the amount in respect of which a holder of the plan pays a tax under section 207.05 in respect of the plan, or another plan for which the plan was substituted by the holder, that(a)has not been waived, cancelled or refunded; and(b)has not otherwise been used in the year or a preceding year in computing the non-taxable portion of a disability assistance payment made from the plan or another plan for which the plan was substituted.Marginal note:Transfer of funds(8)An amount is transferred from a registered disability savings plan (in this subsection referred to as the “prior plan”) of a beneficiary in accordance with this subsection if(a)the amount is transferred directly to another registered disability savings plan (in this subsection referred to as the “new plan”) of the beneficiary;(b)the prior plan is terminated immediately after the transfer;(c)the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the specified Minister) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under theCanada Disability Savings Act; and(d)where the beneficiary attained the age of 59 years before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make (in addition to any other disability assistance payments that would otherwise have been made from the new plan in the year) one or more disability assistance payments from the plan in the year, the total of which is equal to the amount, if any, by which(i)the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurredexceeds(ii)the total amount of disability assistance payments made from the prior plan in the year.Marginal note:No income inclusion on transfer(9)An amount transferred in accordance with subsection (8) is not, solely because of that transfer, to be included in computing the income of any taxpayer.Marginal note:Non-compliance — cessation of registered status(10)Where, at any particular time, a registered disability savings plan is non-compliant as described in subsection (11),(a)the plan ceases, as of the particular time, to be a registered disability savings plan (other than for the purposes of applying, as of the particular time, this subsection and subsection (11));(b)a disability assistance payment is deemed to have been made from the plan at the time (in this subsection referred to as the “relevant time”) immediately before the particular time to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate), the amount of which payment is equal to the amount, if any, by which(i)the fair market value of the property held by the plan trust at the relevant timeexceeds(ii)the assistance holdback amount in relation to the plan; and(c)if the plan is non-compliant because of a payment that is not in accordance with paragraph (4)(j), a disability assistance payment is deemed to have been made from the plan at the relevant time (in addition to the payment deemed by paragraph (b) to have been made) to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate)(i)the amount of which payment is equal to the amount by which the lesser of(A)the assistance holdback amount in relation to the plan, and(B)the fair market value of the property held by the plan trust at the relevant timeexceeds(C)the fair market value of the property held by the plan trust immediately after the particular time, and(ii)the non-taxable portion of which is deemed to be nil.Marginal note:Non-compliance(11)A registered disability savings plan is non-compliant(a)at any time that the plan fails to comply with a condition in subsection (4);(b)at any time that there is a failure to administer the plan in accordance with its terms (other than those terms which the plan is required by subparagraph (4)(a)(i) to stipulate); and(c)at any time that a person fails to comply with a condition or an obligation imposed, with respect to the plan, under theCanada Disability Savings Act, and the specified Minister has notified the Minister that, in the specified Minister’s opinion, it is appropriate that the plan be considered to be non-compliant because of the failure.Marginal note:Non-application of subsection (11)(12)Where a registered disability savings plan would otherwise be non-compliant at a particular time because of a failure described in paragraph (11)(a) or (b),(a)the Minister may waive the application of the relevant paragraph with respect to the failure, if it is just and equitable to do so;(b)the Minister may deem the failure to have occurred at a later time;(c)if the failure consists of the making of a contribution that is prohibited under any of paragraphs (4)(f) to (h), an amount equal to the amount of the contribution has been withdrawn from the plan within such period as is specified by the Minister and the Minister has approved the application of this paragraph with respect to the failure,(i)the contribution is deemed never to have been made, and(ii)the withdrawal is deemed not to be a disability assistance payment and not to be in contravention of the condition in paragraph (4)(i); or(d)if the failure consists of the plan not being terminated by the time set out in paragraph (4)(p) and the failure was due to the issuer being unaware of, or there being some uncertainty as to, the existence of circumstances requiring that the plan be terminated,(i)the Minister may specify a later time by which the plan is to be terminated (but no later than is reasonably necessary for the plan to be terminated in an orderly manner), and(ii)paragraph (4)(p) and the plan terms are, for the purposes of paragraphs (11)(a) and (b), to be read as though they required the plan to be terminated by the time so specified.Marginal note:Obligations of issuer(13)The issuer of a registered disability savings plan shall,(a)where an entity becomes a holder of the plan after the plan is entered into, so notify the specified Minister in prescribed form containing prescribed information on or before the day that is 60 days after the later of(i)the day on which the issuer is advised of the entity having become a holder of the plan, and(ii)the day on which the issuer is provided with the new holder’s Social Insurance Number or business number, as the case may be;(b)not amend the plan before having received notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the amended plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4);(c)where the issuer becomes aware that the plan is, or is likely to become, non-compliant (determined without reference to paragraph (11)(c) and subsection (12)), notify the Minister and the specified Minister of this fact on or before the day that is 30 days after the day on which the issuer becomes so aware; and(d)[Repealed, 2017, c. 33, s. 58](e)if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definitionqualifying personin subsection (1),(i)so notify the beneficiary under the plan without delay in writing and include in the notification information setting out the circumstances in which the holder of the plan may be replaced under subsection (1.5) or (1.6), and(ii)collect and use any information provided by the holder of the plan that is relevant to the administration and operation of the plan.Marginal note:Issuer’s liability(14)If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual’s contractual competence to enter into a disability savings plan is in doubt, no action lies against the issuer for entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definitionqualifying personin subsection (1).
(a)an amount paid into the plan under or because of theCanada Disability Savings Actor a designated provincial program;(b)an amount paid into the plan under or because of any other program that has a similar purpose to a designated provincial program and that is funded, directly or indirectly, by a province (other than an amount paid into the plan by an entity described in subparagraph (a)(iii) of the definitionqualifying personin its capacity as holder of the plan);(c)an amount transferred to the plan in accordance with subsection (8); or(d)other than for the purposes of paragraphs (4)(f) to (h) and (n),(i)a specified RDSP payment as defined in subsection 60.02(1), or(ii)an accumulated income payment made to the plan under subsection 146.1(1.2). (cotisation)
(i)a specified RDSP payment as defined in subsection 60.02(1), or(ii)an accumulated income payment made to the plan under subsection 146.1(1.2). (cotisation)
(a)between(i)a corporation (in this definition referred to as the “issuer”)(A)that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and(B)with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of theCanada Disability Savings Act, and(ii)one or more of the following:(A)the beneficiary,(B)an entity that, at the time the arrangement is entered into, is a qualifying person described in paragraph (a) or (b) of the definitionqualifying personin relation to the beneficiary,(B.1)if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,(B.2)a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and(C)a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;(b)under which one or more contributions are to be made in trust to the issuer to be invested, used or otherwise applied by the issuer for the purpose of making payments from the arrangement to the beneficiary; and(c)that is entered into in a taxation year in respect of which(i)the beneficiary is a DTC-eligible individual, or(ii)the beneficiary is not a DTC-eligible individual and an amount is to be transferred from a registered disability savings plan of the beneficiary to the arrangement in accordance with subsection (8). (régime d’épargne-invalidité)
(i)a corporation (in this definition referred to as the “issuer”)(A)that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and(B)with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of theCanada Disability Savings Act, and(ii)one or more of the following:(A)the beneficiary,(B)an entity that, at the time the arrangement is entered into, is a qualifying person described in paragraph (a) or (b) of the definitionqualifying personin relation to the beneficiary,(B.1)if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,(B.2)a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and(C)a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;
(A)that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, and(B)with which the specified Minister has entered into an agreement that applies to the arrangement for the purposes of theCanada Disability Savings Act, and
(A)the beneficiary,(B)an entity that, at the time the arrangement is entered into, is a qualifying person described in paragraph (a) or (b) of the definitionqualifying personin relation to the beneficiary,(B.1)if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,(B.2)a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and(C)a legal parent of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;
(i)the beneficiary is a DTC-eligible individual, or(ii)the beneficiary is not a DTC-eligible individual and an amount is to be transferred from a registered disability savings plan of the beneficiary to the arrangement in accordance with subsection (8). (régime d’épargne-invalidité)
(a)an entity that has, at that time, rights as an entity with whom the issuer entered into the plan;(b)an entity that has, at that time, rights as a successor or assignee of an entity described in paragraph (a) or in this paragraph; and(c)the beneficiary if, at that time, the beneficiary is not an entity described in paragraph (a) or (b) and has rights under the plan to make decisions (either alone or with other holders of the plan) concerning the plan, except where the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph (4)(n)(ii). (titulaire)
(a)an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definitionqualified investmentin section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a RDSP” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”;(b)a contract for an annuity issued by a licensed annuities provider where(i)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and(ii)the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract;(c)a contract for an annuity issued by a licensed annuities provider where(i)annual or more frequent periodic payments are or may be made under the contract to the holder of the contract,(ii)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract,(iii)neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan,(iv)the day on which the periodic payments began or are to begin is not later than the end of the later of(A)the year in which the beneficiary under the plan attains the age of 60 years, and(B)the year following the year in which the contract was acquired by the trust,(v)the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years,(vi)the periodic payments(A)are equal, or(B)are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and(vii)the contract requires that, in the event the plan must be terminated in accordance with paragraph (4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and(d)a prescribed investment. (placement admissible)
(i)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and(ii)the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract;
(i)annual or more frequent periodic payments are or may be made under the contract to the holder of the contract,(ii)the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract,(iii)neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan,(iv)the day on which the periodic payments began or are to begin is not later than the end of the later of(A)the year in which the beneficiary under the plan attains the age of 60 years, and(B)the year following the year in which the contract was acquired by the trust,(v)the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years,(vi)the periodic payments(A)are equal, or(B)are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and(vii)the contract requires that, in the event the plan must be terminated in accordance with paragraph (4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and
(A)the year in which the beneficiary under the plan attains the age of 60 years, and(B)the year following the year in which the contract was acquired by the trust,
(A)are equal, or(B)are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and
(a)a legal parent of the beneficiary; or(b)a spouse or common-law partner of the beneficiary who is not living separate and apart from the beneficiary by reason of a breakdown of their marriage or common-law partnership. (membre de la famille admissible)
(a)if the beneficiary has not, at or before that time, attained the age of majority, an entity that is, at that time,(i)a legal parent of the beneficiary,(ii)a guardian, tutor, curator or other individual who is legally authorized to act on behalf of the beneficiary, or(iii)a public department, agency or institution that is legally authorized to act on behalf of the beneficiary;(b)if the beneficiary has, at or before that time, attained the age of majority and is not, at that time, contractually competent to enter into a disability savings plan, an entity that is, at that time, an entity described in subparagraph (a)(ii) or (iii); and(c)other than for the purposes of subparagraph (4)(b)(iv), an individual who is a qualifying family member in relation to the beneficiary if(i)at or before that time, the beneficiary has attained the age of majority and is not a beneficiary under a disability savings plan,(ii)at that time, no entity described in subparagraph (a)(ii) or (iii) is legally authorized to act on behalf of the beneficiary, and(iii)in the issuer’s opinion after reasonable inquiry, the beneficiary’s contractual competence to enter into a disability savings plan at that time is in doubt. (responsable)
(i)a legal parent of the beneficiary,(ii)a guardian, tutor, curator or other individual who is legally authorized to act on behalf of the beneficiary, or(iii)a public department, agency or institution that is legally authorized to act on behalf of the beneficiary;
(i)at or before that time, the beneficiary has attained the age of majority and is not a beneficiary under a disability savings plan,(ii)at that time, no entity described in subparagraph (a)(ii) or (iii) is legally authorized to act on behalf of the beneficiary, and(iii)in the issuer’s opinion after reasonable inquiry, the beneficiary’s contractual competence to enter into a disability savings plan at that time is in doubt. (responsable)
(a)the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year, and(b)the amount determined by the formulaA + BwhereAis 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definitionqualified investment), andBis the total of all amounts each of which is(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investment) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year. (plafond)
(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investment) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year. (plafond)
(a)if the plan is a specified disability savings plan, each subsequent calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan; or(b)in any other case, each of the five calendar years following the particular calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan. (année déterminée)
(a)the time that the specified Minister receives a notification, in a manner and format acceptable to the specified Minister, from the issuer of the plan that the holder elects that the plan is to cease to be a specified disability savings plan;(b)the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or such greater amount as is required to satisfy the condition in subparagraph (d)(i));(c)the time that is immediately before the time that(i)a contribution is made to the plan,(ii)an amount described in any of paragraphs (a) and (b) and subparagraph (d)(ii) of the definitioncontributionin subsection (1) is paid into the plan,(iii)the plan is terminated,(iv)the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a), or(v)is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1); and(d)the time immediately following the end of a calendar year if(i)in the year the total amount of disability assistance payments made from the plan to the beneficiary is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the year (or such lesser amount as is supported by the property of the plan), and(ii)the year is not the calendar year in which the plan became a specified disability savings plan.(e) and (f)[Repealed, 2012, c. 31, s. 35]
(i)a contribution is made to the plan,(ii)an amount described in any of paragraphs (a) and (b) and subparagraph (d)(ii) of the definitioncontributionin subsection (1) is paid into the plan,(iii)the plan is terminated,(iv)the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a), or(v)is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1); and
(i)in the year the total amount of disability assistance payments made from the plan to the beneficiary is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the year (or such lesser amount as is supported by the property of the plan), and(ii)the year is not the calendar year in which the plan became a specified disability savings plan.
(a)the beneficiary is determined to be contractually competent by a competent tribunal or other authority under the laws of a province or, in the issuer’s opinion after reasonable inquiry, the beneficiary’s contractual competence to enter into a disability savings plan is no longer in doubt; and(b)the beneficiary notifies the issuer that the beneficiary chooses to become the holder of the plan.
(a)the entity shall notify the issuer without delay of the entity’s appointment;(b)the holder of the plan ceases to be a holder of the plan; and(c)the entity becomes the holder of the plan.
(a)before the plan is entered into, the issuer of the plan has received written notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4);(b)at or before the time the plan is entered into, the issuer of the plan has been provided with the Social Insurance Number of the beneficiary and the Social Insurance Number or business number, as the case may be, of each entity with which the issuer has entered into the plan; and(c)at the time the plan is entered into, the beneficiary is resident in Canada, except that this condition does not apply if, at that time, the beneficiary is the beneficiary under another registered disability savings plan.
(a)the issuer of the plan provides without delay notification of the plan’s establishment in prescribed form containing prescribed information to the specified Minister; and(b)if the beneficiary is the beneficiary under another registered disability savings plan at the time the plan is established, that other plan is terminated without delay.
(a)the plan stipulates(i)that it is to be operated exclusively for the benefit of the beneficiary under the plan,(ii)that the designation of the beneficiary under the plan is irrevocable, and(iii)that no right of the beneficiary to receive payments from the plan is capable, either in whole or in part, of surrender or assignment;(b)the plan allows an entity to acquire rights as a successor or assignee of a holder of the plan only if the entity is(i)the beneficiary,(ii)the beneficiary’s estate,(iii)a holder of the plan at the time the rights are acquired,(iv)a qualifying person in relation to the beneficiary at the time the rights are acquired, or(v)an individual who is a legal parent of the beneficiary and was previously a holder of the plan;(c)the plan provides that, where an entity (other than a qualifying family member in relation to the beneficiary) that is a holder of the plan ceases to be a qualifying person in relation to the beneficiary at any time, the entity ceases at that time to be a holder of the plan;(d)the plan provides for there to be at least one holder of the plan at all times that the plan is in existence and may provide for the beneficiary (or the beneficiary’s estate, as the case may be) to automatically acquire rights as a successor or assignee of a holder in order to ensure compliance with this requirement;(e)the plan provides that, where an entity becomes a holder of the plan after the plan is entered into, the entity is prohibited (except to the extent otherwise permitted by the Minister or the specified Minister) from exercising their rights as a holder of the plan until the issuer has been advised of the entity having become a holder of the plan and been provided with the entity’s Social Insurance Number or business number, as the case may be;(f)the plan prohibits contributions from being made to the plan at any time if(i)the beneficiary is not a DTC-eligible individual in respect of the taxation year that includes that time, unless the contribution is a specified RDSP payment in respect of the beneficiary, or(ii)the beneficiary died before that time;(g)the plan prohibits a contribution from being made to the plan at any time if(i)the beneficiary attained the age of 59 years before the calendar year that includes that time,(ii)the beneficiary is not resident in Canada at that time, or(iii)the total of the contribution and all other contributions made at or before that time to the plan or to any other registered disability savings plan of the beneficiary would exceed $200,000;(h)the plan prohibits contributions to the plan by any entity that is not a holder of the plan, except with the written consent of a holder of the plan;(i)the plan provides that no payments may be made from the plan other than(i)disability assistance payments,(ii)a transfer in accordance with subsection (8), and(iii)repayments under theCanada Disability Savings Actor a designated provincial program;(j)the plan prohibits a disability assistance payment from being made if it would result in the fair market value of the property held by the plan trust immediately after the payment being less than the assistance holdback amount in relation to the plan;(k)the plan provides for lifetime disability assistance payments to begin to be paid no later than the end of the particular calendar year in which the beneficiary attains the age of 60 years or, if the plan is established in or after the particular year, in the calendar year following the calendar year in which the plan is established;(l)the plan provides that the total amount of lifetime disability assistance payments made in any calendar year (other than a specified year for the plan) shall not exceed the amount determined by the formulaA/(B + 3 - C) + DwhereAis the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definitionqualified investmentin subsection (1)),Bis the greater of 80 and the age in whole years of the beneficiary at the beginning of the calendar year,Cis the age in whole years of the beneficiary at the beginning of the calendar year, andDis the total of all amounts each of which is(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investmentin subsection (1)) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year;(m)the plan stipulates whether or not disability assistance payments that are not lifetime disability assistance payments are to be permitted under the plan;(n)the plan provides that when the total of all amounts paid under theCanada Disability Savings Actbefore the beginning of a calendar year to any registered disability savings plan of the beneficiary exceeds the total of all contributions made before the beginning of the calendar year to any registered disability savings plan of the beneficiary,(i)if the calendar year is not a specified year for the plan and the conditions in clauses (p)(ii)(A) and (B) are not met in the calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the specified maximum amount for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accordance with subsection (8) is to be disregarded if it is made(A)to satisfy an undertaking described in paragraph (8)(d), or(B)in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and(ii)if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year;(iii)[Repealed, 2012, c. 31, s. 35](n.1)the plan provides that, if the beneficiary attained the age of 59 years before a calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not be less than the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan trust);(o)the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust (or an amount equal to its value) to another registered disability savings plan of the beneficiary, together with all information in its possession (other than information provided to the issuer of the other plan by the specified Minister) that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Act and with any conditions and obligations imposed under theCanada Disability Savings Act; and(p)the plan provides for any amounts remaining in the plan (after taking into consideration any repayments under theCanada Disability Savings Actor a designated provincial program) to be paid to the beneficiary or the beneficiary’s estate, as the case may be, and for the plan to be terminated, by the end of the calendar year following the earlier of(i)the calendar year in which the beneficiary dies, and(ii)the first calendar year in which the following conditions are met:(A)the holder of the plan has requested that the issuer terminate the plan, and(B)throughout the year, the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).
(i)that it is to be operated exclusively for the benefit of the beneficiary under the plan,(ii)that the designation of the beneficiary under the plan is irrevocable, and(iii)that no right of the beneficiary to receive payments from the plan is capable, either in whole or in part, of surrender or assignment;
(i)the beneficiary,(ii)the beneficiary’s estate,(iii)a holder of the plan at the time the rights are acquired,(iv)a qualifying person in relation to the beneficiary at the time the rights are acquired, or(v)an individual who is a legal parent of the beneficiary and was previously a holder of the plan;
(i)the beneficiary is not a DTC-eligible individual in respect of the taxation year that includes that time, unless the contribution is a specified RDSP payment in respect of the beneficiary, or(ii)the beneficiary died before that time;
(i)the beneficiary attained the age of 59 years before the calendar year that includes that time,(ii)the beneficiary is not resident in Canada at that time, or(iii)the total of the contribution and all other contributions made at or before that time to the plan or to any other registered disability savings plan of the beneficiary would exceed $200,000;
(i)disability assistance payments,(ii)a transfer in accordance with subsection (8), and(iii)repayments under theCanada Disability Savings Actor a designated provincial program;
(i)a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definitionqualified investmentin subsection (1)) that is paid to the plan trust in the calendar year, or(ii)if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year;
(i)if the calendar year is not a specified year for the plan and the conditions in clauses (p)(ii)(A) and (B) are not met in the calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the specified maximum amount for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accordance with subsection (8) is to be disregarded if it is made(A)to satisfy an undertaking described in paragraph (8)(d), or(B)in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and(ii)if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year;(iii)[Repealed, 2012, c. 31, s. 35]
(A)to satisfy an undertaking described in paragraph (8)(d), or(B)in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and
(i)the calendar year in which the beneficiary dies, and(ii)the first calendar year in which the following conditions are met:(A)the holder of the plan has requested that the issuer terminate the plan, and(B)throughout the year, the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).
(A)the holder of the plan has requested that the issuer terminate the plan, and(B)throughout the year, the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).
(a)the beneficiary of the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1), or(b)an election was made under subsection (4.1), as it read immediately before 2021, and the election ceases to be valid after March 18, 2019 and before 2021 because of paragraph (4.2)(b), as it read immediately before 2021.
(a)tax is payable under this Part by the trust on its taxable income for the year if the trust has borrowed money(i)in the year, or(ii)in a preceding taxation year and has not repaid it before the beginning of the year; and(b)if the trust is not otherwise taxable under paragraph (a) on its taxable income for the year and, at any time in the year, it carries on one or more businesses or holds one or more properties that are not qualified investments for the trust, tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or losses other than from dispositions of those properties, and for this purpose,(i)“income” includes dividends described in section 83, and(ii)paragraphs 38(a) and (b) are to be read as if the fraction set out in each of those paragraphs were replaced by the word “all”.
(i)in the year, or(ii)in a preceding taxation year and has not repaid it before the beginning of the year; and
(i)“income” includes dividends described in section 83, and(ii)paragraphs 38(a) and (b) are to be read as if the fraction set out in each of those paragraphs were replaced by the word “all”.
(a)if the beneficiary is alive at the time the payment is made, in computing the beneficiary’s income for the beneficiary’s taxation year in which the payment is made; and(b)in any other case, in computing the income of the beneficiary’s estate for the estate’s taxation year in which the payment is made.
(a)the total of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiary
(b)the total of all amounts each of which is the amount that would be the non-taxable portion of a disability assistance payment made before the particular time from any registered disability savings plan of the beneficiary, if the formula in this subsection were read without reference to the description of D;
(a)has not been waived, cancelled or refunded; and(b)has not otherwise been used in the year or a preceding year in computing the non-taxable portion of a disability assistance payment made from the plan or another plan for which the plan was substituted.
(a)the amount is transferred directly to another registered disability savings plan (in this subsection referred to as the “new plan”) of the beneficiary;(b)the prior plan is terminated immediately after the transfer;(c)the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the specified Minister) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under theCanada Disability Savings Act; and(d)where the beneficiary attained the age of 59 years before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make (in addition to any other disability assistance payments that would otherwise have been made from the new plan in the year) one or more disability assistance payments from the plan in the year, the total of which is equal to the amount, if any, by which(i)the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurredexceeds(ii)the total amount of disability assistance payments made from the prior plan in the year.
(i)the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurred
(ii)the total amount of disability assistance payments made from the prior plan in the year.
(a)the plan ceases, as of the particular time, to be a registered disability savings plan (other than for the purposes of applying, as of the particular time, this subsection and subsection (11));(b)a disability assistance payment is deemed to have been made from the plan at the time (in this subsection referred to as the “relevant time”) immediately before the particular time to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate), the amount of which payment is equal to the amount, if any, by which(i)the fair market value of the property held by the plan trust at the relevant timeexceeds(ii)the assistance holdback amount in relation to the plan; and(c)if the plan is non-compliant because of a payment that is not in accordance with paragraph (4)(j), a disability assistance payment is deemed to have been made from the plan at the relevant time (in addition to the payment deemed by paragraph (b) to have been made) to the beneficiary under the plan (or, if the beneficiary is deceased at the relevant time, to the beneficiary’s estate)(i)the amount of which payment is equal to the amount by which the lesser of(A)the assistance holdback amount in relation to the plan, and(B)the fair market value of the property held by the plan trust at the relevant timeexceeds(C)the fair market value of the property held by the plan trust immediately after the particular time, and(ii)the non-taxable portion of which is deemed to be nil.
(i)the fair market value of the property held by the plan trust at the relevant time
(ii)the assistance holdback amount in relation to the plan; and
(i)the amount of which payment is equal to the amount by which the lesser of(A)the assistance holdback amount in relation to the plan, and(B)the fair market value of the property held by the plan trust at the relevant timeexceeds(C)the fair market value of the property held by the plan trust immediately after the particular time, and(ii)the non-taxable portion of which is deemed to be nil.
(A)the assistance holdback amount in relation to the plan, and(B)the fair market value of the property held by the plan trust at the relevant time
(C)the fair market value of the property held by the plan trust immediately after the particular time, and
(a)at any time that the plan fails to comply with a condition in subsection (4);(b)at any time that there is a failure to administer the plan in accordance with its terms (other than those terms which the plan is required by subparagraph (4)(a)(i) to stipulate); and(c)at any time that a person fails to comply with a condition or an obligation imposed, with respect to the plan, under theCanada Disability Savings Act, and the specified Minister has notified the Minister that, in the specified Minister’s opinion, it is appropriate that the plan be considered to be non-compliant because of the failure.
(a)the Minister may waive the application of the relevant paragraph with respect to the failure, if it is just and equitable to do so;(b)the Minister may deem the failure to have occurred at a later time;(c)if the failure consists of the making of a contribution that is prohibited under any of paragraphs (4)(f) to (h), an amount equal to the amount of the contribution has been withdrawn from the plan within such period as is specified by the Minister and the Minister has approved the application of this paragraph with respect to the failure,(i)the contribution is deemed never to have been made, and(ii)the withdrawal is deemed not to be a disability assistance payment and not to be in contravention of the condition in paragraph (4)(i); or(d)if the failure consists of the plan not being terminated by the time set out in paragraph (4)(p) and the failure was due to the issuer being unaware of, or there being some uncertainty as to, the existence of circumstances requiring that the plan be terminated,(i)the Minister may specify a later time by which the plan is to be terminated (but no later than is reasonably necessary for the plan to be terminated in an orderly manner), and(ii)paragraph (4)(p) and the plan terms are, for the purposes of paragraphs (11)(a) and (b), to be read as though they required the plan to be terminated by the time so specified.
(i)the contribution is deemed never to have been made, and(ii)the withdrawal is deemed not to be a disability assistance payment and not to be in contravention of the condition in paragraph (4)(i); or
(i)the Minister may specify a later time by which the plan is to be terminated (but no later than is reasonably necessary for the plan to be terminated in an orderly manner), and(ii)paragraph (4)(p) and the plan terms are, for the purposes of paragraphs (11)(a) and (b), to be read as though they required the plan to be terminated by the time so specified.
(a)where an entity becomes a holder of the plan after the plan is entered into, so notify the specified Minister in prescribed form containing prescribed information on or before the day that is 60 days after the later of(i)the day on which the issuer is advised of the entity having become a holder of the plan, and(ii)the day on which the issuer is provided with the new holder’s Social Insurance Number or business number, as the case may be;(b)not amend the plan before having received notification from the Minister that, in the Minister’s opinion, a plan whose terms are identical to the amended plan would, if entered into by entities eligible to enter into a disability savings plan, comply with the conditions in subsection (4);(c)where the issuer becomes aware that the plan is, or is likely to become, non-compliant (determined without reference to paragraph (11)(c) and subsection (12)), notify the Minister and the specified Minister of this fact on or before the day that is 30 days after the day on which the issuer becomes so aware; and(d)[Repealed, 2017, c. 33, s. 58](e)if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definitionqualifying personin subsection (1),(i)so notify the beneficiary under the plan without delay in writing and include in the notification information setting out the circumstances in which the holder of the plan may be replaced under subsection (1.5) or (1.6), and(ii)collect and use any information provided by the holder of the plan that is relevant to the administration and operation of the plan.
(i)the day on which the issuer is advised of the entity having become a holder of the plan, and(ii)the day on which the issuer is provided with the new holder’s Social Insurance Number or business number, as the case may be;
(i)so notify the beneficiary under the plan without delay in writing and include in the notification information setting out the circumstances in which the holder of the plan may be replaced under subsection (1.5) or (1.6), and(ii)collect and use any information provided by the holder of the plan that is relevant to the administration and operation of the plan.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2007, c. 35, s. 1152008, c. 28, s. 252010, c. 12, s. 17, c. 25, s. 362011, c. 15, s. 22012, c. 19, s. 6, c. 31, s. 352013, c. 33, s. 162015, c. 36, s. 162017, c. 33, s. 582018, c. 12, s. 242021, c. 23, s. 33
146.5(1)The following definitions apply in this section.advanced life deferred annuityadvanced life deferred annuitymeans a contract for an annuity that meets the following conditions:(a)it is issued by a licensed annuities provider;(b)it specifies that it is intended to qualify as an advanced life deferred annuity under this Act;(c)periodic annuity payments under the contract(i)commence to be paid no later than the end of the calendar year in which the annuitant attains 85 years of age, and(ii)are payable for the life of the annuitant or for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner;(d)periodic annuity payments under the contract are payable(i)in equal amounts, or(ii)in amounts that are not equal only because the payments(A)are adjusted in whole or in part to reflect(I)increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(II)increases at a rate specified in the contract, not exceeding 2% per annum, or(B)are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner;(e)if an annuity is payable for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner and the annuitant dies before payments commence to be paid, then the payments to the annuitant’s spouse or common-law partner shall(i)commence no later than the date that they would have commenced if the annuitant were alive, and(ii)be adjusted in accordance with generally accepted actuarial principles if the payments commence before the date they would have commenced if the annuitant were alive;(f)the amount to be paid, if any, to one or more beneficiaries under the contract after the death of the annuitant — or, in the case of a joint-lives annuity, after the last death of the annuitant and the annuitant’s spouse or common-law partner — shall(i)be paid as soon as practicable after the death of the annuitant or the last death of the annuitant and the annuitant’s spouse or common-law partner, as the case may be, and(ii)not exceed the amount, if any, by which the total amount transferred to acquire the annuity exceeds the total amount of annuity payments made under the contract;(g)it provides that all or part of the amount transferred to acquire the annuity may be refunded, if(i)the refund is paid to reduce the amount of tax that would otherwise be payable by the annuitant under Part XI, and(ii)the refund is(A)paid to the annuitant, or(B)transferred directly to(I)the issuer of a registered retirement savings plan of the annuitant,(II)the carrier of a registered retirement income fund of the annuitant,(III)the administrator of a pooled registered pension plan under which the annuitant is a member, or(IV)the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;(h)if it provides that the spouse or common-law partner may request a payment in a single amount in full or partial satisfaction of the spouse’s or common-law partner’s entitlement to payments described in subparagraph (c)(ii) as a consequence of the death of the annuitant, then the single amount cannot exceed the present value (at the time the single amount is paid) of the other payments that, as a consequence of the payment of the single amount, cease to be provided;(i)no right under the contract is capable of being assigned, charged, anticipated, given as security or surrendered; and(j)it does not provide for any payment under the contract except as specified in this definition. (rente viagère différée à un âge avancé)annuitantannuitantmeans an individual who has acquired a contract for an annuity from a licensed annuities provider. (rentier)beneficiarybeneficiary, under a contract for an annuity, means an individual who has a right under the contract to receive a payment after the death of the annuitant or the annuitant’s spouse or common-law partner. (bénéficiaire)Marginal note:Taxable amount — annuity payments(2)Amounts (excluding amounts described in paragraph (f) or (g) of the definitionadvanced life deferred annuityin subsection (1) and including amounts deemed to have been received under paragraph (7)(a)) received by a taxpayer in a taxation year under an advanced life deferred annuity shall be included in computing the income of the taxpayer for the taxation year.Marginal note:Taxable amount — death benefits(3)Amounts described in paragraph (f) of the definitionadvanced life deferred annuityin subsection (1) received by a taxpayer in a taxation year under an advanced life deferred annuity as a result of the death of an individual shall be included in computing the income of(a)the taxpayer for the taxation year, if the taxpayer is(i)the spouse or common-law partner of the individual, or(ii)a child or grandchild of the individual who was, immediately before the death of the individual, financially dependent on the individual for support; and(b)the individual for the taxation year in which the individual died, in any other case.Marginal note:Taxation of refunds(4)The amount of a refund described in clause (g)(ii)(A) of the definitionadvanced life deferred annuityin subsection (1) that is paid to an annuitant shall be included in the income of the annuitant.Marginal note:Treatment of amount transferred(5)If an amount is paid in circumstances described in clause (g)(ii)(B) of the definitionadvanced life deferred annuityin subsection (1),(a)the amount shall not, by reason only of that payment, be included by reason of paragraph 56(1)(z.5) in computing the income of any taxpayer;(b)no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer;(c)in the case of an amount paid to a registered pension plan, the amount is deemed not to be a contribution for the purpose of applying Parts LXXXIII and LXXXV of theIncome Tax Regulations; and(d)in the case of an amount paid to a registered retirement savings plan or a pooled registered pension plan, the amount shall not be included in determining the amount of the individual’s undeducted RRSP premiums under subsection 204.2(1.2).Marginal note:Deemed payment to beneficiary(6)An amount is deemed to have been received at a particular time by abeneficiary(as defined in subsection 108(1)) of a deceased annuitant’s estate, and not by the legal representative of the deceased annuitant, if(a)the amount is described in paragraph (f) of the definitionadvanced life deferred annuityin subsection (1);(b)the amount was paid to the legal representative;(c)the beneficiary is described in paragraph (3)(a);(d)the beneficiary is entitled to the amount in full or partial satisfaction of their rights as a beneficiary under the deceased annuitant’s estate; and(e)the amount is designated jointly by the legal representative and the beneficiary in prescribed form filed with the Minister.Marginal note:Amended contract(7)If an amendment made at any time to a contract results in it no longer meeting the conditions in the definitionadvanced life deferred annuityin subsection (1), the following rules apply:(a)the annuitant under the contract immediately before that time is deemed to have received under the contract at that time an amount equal to the fair market value of their interest in the contract at that time; and(b)the annuitant is deemed to have acquired their interest in the contract at that time at a cost equal to the fair market value of the interest at that time.
(a)it is issued by a licensed annuities provider;(b)it specifies that it is intended to qualify as an advanced life deferred annuity under this Act;(c)periodic annuity payments under the contract(i)commence to be paid no later than the end of the calendar year in which the annuitant attains 85 years of age, and(ii)are payable for the life of the annuitant or for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner;(d)periodic annuity payments under the contract are payable(i)in equal amounts, or(ii)in amounts that are not equal only because the payments(A)are adjusted in whole or in part to reflect(I)increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(II)increases at a rate specified in the contract, not exceeding 2% per annum, or(B)are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner;(e)if an annuity is payable for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner and the annuitant dies before payments commence to be paid, then the payments to the annuitant’s spouse or common-law partner shall(i)commence no later than the date that they would have commenced if the annuitant were alive, and(ii)be adjusted in accordance with generally accepted actuarial principles if the payments commence before the date they would have commenced if the annuitant were alive;(f)the amount to be paid, if any, to one or more beneficiaries under the contract after the death of the annuitant — or, in the case of a joint-lives annuity, after the last death of the annuitant and the annuitant’s spouse or common-law partner — shall(i)be paid as soon as practicable after the death of the annuitant or the last death of the annuitant and the annuitant’s spouse or common-law partner, as the case may be, and(ii)not exceed the amount, if any, by which the total amount transferred to acquire the annuity exceeds the total amount of annuity payments made under the contract;(g)it provides that all or part of the amount transferred to acquire the annuity may be refunded, if(i)the refund is paid to reduce the amount of tax that would otherwise be payable by the annuitant under Part XI, and(ii)the refund is(A)paid to the annuitant, or(B)transferred directly to(I)the issuer of a registered retirement savings plan of the annuitant,(II)the carrier of a registered retirement income fund of the annuitant,(III)the administrator of a pooled registered pension plan under which the annuitant is a member, or(IV)the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;(h)if it provides that the spouse or common-law partner may request a payment in a single amount in full or partial satisfaction of the spouse’s or common-law partner’s entitlement to payments described in subparagraph (c)(ii) as a consequence of the death of the annuitant, then the single amount cannot exceed the present value (at the time the single amount is paid) of the other payments that, as a consequence of the payment of the single amount, cease to be provided;(i)no right under the contract is capable of being assigned, charged, anticipated, given as security or surrendered; and(j)it does not provide for any payment under the contract except as specified in this definition. (rente viagère différée à un âge avancé)
(i)commence to be paid no later than the end of the calendar year in which the annuitant attains 85 years of age, and(ii)are payable for the life of the annuitant or for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner;
(i)in equal amounts, or(ii)in amounts that are not equal only because the payments(A)are adjusted in whole or in part to reflect(I)increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(II)increases at a rate specified in the contract, not exceeding 2% per annum, or(B)are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner;
(A)are adjusted in whole or in part to reflect(I)increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(II)increases at a rate specified in the contract, not exceeding 2% per annum, or(B)are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner;
(I)increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(II)increases at a rate specified in the contract, not exceeding 2% per annum, or
(i)commence no later than the date that they would have commenced if the annuitant were alive, and(ii)be adjusted in accordance with generally accepted actuarial principles if the payments commence before the date they would have commenced if the annuitant were alive;
(i)be paid as soon as practicable after the death of the annuitant or the last death of the annuitant and the annuitant’s spouse or common-law partner, as the case may be, and(ii)not exceed the amount, if any, by which the total amount transferred to acquire the annuity exceeds the total amount of annuity payments made under the contract;
(i)the refund is paid to reduce the amount of tax that would otherwise be payable by the annuitant under Part XI, and(ii)the refund is(A)paid to the annuitant, or(B)transferred directly to(I)the issuer of a registered retirement savings plan of the annuitant,(II)the carrier of a registered retirement income fund of the annuitant,(III)the administrator of a pooled registered pension plan under which the annuitant is a member, or(IV)the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;
(A)paid to the annuitant, or(B)transferred directly to(I)the issuer of a registered retirement savings plan of the annuitant,(II)the carrier of a registered retirement income fund of the annuitant,(III)the administrator of a pooled registered pension plan under which the annuitant is a member, or(IV)the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;
(I)the issuer of a registered retirement savings plan of the annuitant,(II)the carrier of a registered retirement income fund of the annuitant,(III)the administrator of a pooled registered pension plan under which the annuitant is a member, or(IV)the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;
(a)the taxpayer for the taxation year, if the taxpayer is(i)the spouse or common-law partner of the individual, or(ii)a child or grandchild of the individual who was, immediately before the death of the individual, financially dependent on the individual for support; and(b)the individual for the taxation year in which the individual died, in any other case.
(i)the spouse or common-law partner of the individual, or(ii)a child or grandchild of the individual who was, immediately before the death of the individual, financially dependent on the individual for support; and
(a)the amount shall not, by reason only of that payment, be included by reason of paragraph 56(1)(z.5) in computing the income of any taxpayer;(b)no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer;(c)in the case of an amount paid to a registered pension plan, the amount is deemed not to be a contribution for the purpose of applying Parts LXXXIII and LXXXV of theIncome Tax Regulations; and(d)in the case of an amount paid to a registered retirement savings plan or a pooled registered pension plan, the amount shall not be included in determining the amount of the individual’s undeducted RRSP premiums under subsection 204.2(1.2).
(a)the amount is described in paragraph (f) of the definitionadvanced life deferred annuityin subsection (1);(b)the amount was paid to the legal representative;(c)the beneficiary is described in paragraph (3)(a);(d)the beneficiary is entitled to the amount in full or partial satisfaction of their rights as a beneficiary under the deceased annuitant’s estate; and(e)the amount is designated jointly by the legal representative and the beneficiary in prescribed form filed with the Minister.
(a)the annuitant under the contract immediately before that time is deemed to have received under the contract at that time an amount equal to the fair market value of their interest in the contract at that time; and(b)the annuitant is deemed to have acquired their interest in the contract at that time at a cost equal to the fair market value of the interest at that time.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2021, c. 23, s. 34
146.6(1)The following definitions apply in this section.annual FHSA limitannual FHSA limitof a taxpayer for a taxation year is the least of(a)the amount determined by the formulaA + B − CwhereAis the total of all contributions made to a FHSA in the year by the taxpayer (other than any contributions made after the taxpayer’s first qualifying withdrawal from a FHSA),Bis(i)if the taxpayer’s maximum participation period has not begun in a preceding taxation year, nil, and(ii)in any other case, the amount by which the amount determined under this paragraph for the preceding taxation year exceeds the annual FHSA limit for that taxation year, andCis the total of all designated amounts described in paragraph (b) of the definitiondesignated amountin subsection 207.01(1) for the year,(b)the amount determined by the formula$8,000 + D − (E − F − G)whereDis the amount of the FHSA carryforward for the taxation year;Eis the total of all amounts transferred in the year or a preceding taxation year under paragraph 146(16)(a.2) to a FHSA under which the taxpayer is the holder, andFis the total of all amounts, each of which is an amount determined in respect of each preceding taxation year that is(i)if the taxpayer had not started their maximum participation period in the preceding taxation year, nil, or(ii)in any other case, the lesser of(A)the amount determined by the formulaH − IwhereHis the amount determined for E in the preceding taxation year, andIis the amount determined for F in the preceding taxation year, and(B)$8,000 plus the amount of the FHSA carryforward for the preceding taxation year, andGis the total of all designated amounts described in paragraph (a) of the definitiondesignated amountin subsection 207.01(1), and(c)nil, if the taxation year is after the year in which(i)the taxpayer’s maximum participation period has ended, or(ii)the taxpayer has died. (plafond annuel au titre du CELIAPP)beneficiarybeneficiaryunder a FHSA means an individual (including an estate) or a qualified donee that has a right to receive a distribution from the FHSA after the death of the holder of the FHSA. (bénéficiaire)first home savings accountfirst home savings accountorFHSAmeans an arrangement registered with the Minister that has not ceased to be a FHSA under subsection 146.6(16). (compte d’épargne libre d’impôt pour l’achat d’une première propriétéouCELIAPP)FHSA carryforwardFHSA carryforwardof a taxpayer for a taxation year is the least of(a)$8,000,(b)the amount determined by the formulaA − BwhereAis the amount determined in paragraph (b) of the definitionannual FHSA limitfor the preceding taxation year, andBis the amount determined in paragraph (a) of the definitionannual FHSA limitfor the preceding taxation year, and(c)nil, if the taxpayer had not started their maximum participation period prior to the taxation year. (montant des cotisations reporté)holderholderof an arrangement means(a)until the death of the individual who entered into the arrangement, the individual; and(b)after the death of the individual, the individual’s survivor, if the survivor is designated under the arrangement to become a successor of the holder and is a qualifying individual. (titulaire)issuerissuerof an arrangement means the person described as the issuer in the definitionqualifying arrangement. (émetteur)maximum participation periodmaximum participation periodof an individual means the period that(a)begins when an individual first enters into a qualifying arrangement; and(b)ends at the end of the year following the year in which the earliest of the following events occur:(i)the 14th anniversary of the date the individual first enters into a qualifying arrangement,(ii)the individual attains 70 years of age, and(iii)the individual first makes a qualifying withdrawal from a FHSA. (période de participation maximale)non-qualified investmentnon-qualified investmenthas the same meaning as in subsection 207.01(1). (placement non admissible)qualified investmentqualified investmenthas the same meaning as in subsection 207.01(1). (placement admissible)qualifying arrangementqualifying arrangement, at a particular time, means an arrangement(a)that is entered into after March 2023 between a person (in this definition referred to as the “issuer”) and a qualifying individual;(b)that is(i)an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,(ii)an annuity contract with an issuer that is a licensed annuities provider, or(iii)a deposit with an issuer that is(A)a person that is, or is eligible to become, a member of the Canadian Payments Association, or(B)a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of theCanadian Payments Act;(c)that provides for contributions to be made under the arrangement to the issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the issuer making distributions under the arrangement to the holder;(d)under which the issuer and the qualifying individual agree, at the time the arrangement is entered into, that the issuer will file with the Minister an election to register the arrangement as a FHSA, in the prescribed form and manner under the Social Insurance Number of the qualifying individual with whom the arrangement was entered into; and(e)that, at all times throughout the period that begins at the time the arrangement is entered into and that ends at the particular time, complies with the conditions in subsection (2). (arrangement admissible)qualifying homequalifying homemeans(a)a housing unit located in Canada; or(b)a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada, except that, where the context so requires, a reference to a share with a right to possession of a housing unit described means the housing unit to which the share relates. (habitation admissible)qualifying individualqualifying individual, at a particular time, means an individual who(a)is a resident of Canada;(b)is at least 18 years of age; and(c)did not, at any prior time in the calendar year or in the preceding four calendar years, inhabit as a principal place of residence a qualifying home (or what would be a qualifying home if it were located in Canada) that was owned, whether jointly with another person or otherwise, by(i)the individual, or(ii)a person who is the spouse or common-law partner of the individual at the particular time. (particulier déterminé)qualifying withdrawalqualifying withdrawalof an individual means an amount received at a particular time by the individual as a benefit out of or under a FHSA if(a)the amount is received as a result of the individual’s written request in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence;(b)the individual(i)is a resident of Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the time at which the individual acquires the qualifying home, and(ii)does not have an owner-occupied home within the meaning of paragraph 146.01(2)(a.1) in the period(A)that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and(B)that ends on the 31st day before the particular time;(c)the individual entered into an agreement in writing before the particular time for the acquisition or construction of the qualifying home before October 1 of the calendar year following the year in which the amount was received; and(d)the individual did not acquire the qualifying home more than 30 days before the particular time. (retrait admissible)survivorsurvivorof a qualifying individual means another individual who is, immediately before the qualifying individual’s death, a spouse or common-law partner of the qualifying individual. (survivant)Marginal note:Qualifying arrangement conditions(2)For the purposes of paragraph (e) of the definitionqualifying arrangementin subsection (1), the conditions are as follows:(a)the arrangement requires that it be maintained for the exclusive benefit of the holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the holder);(b)the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds;(c)the arrangement prohibits anyone other than the holder from making contributions under the arrangement;(d)the arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the holder under section 207.021;(e)the arrangement provides that, at the direction of the holder, the issuer shall transfer all or any part of the property held in connection with the arrangement (or an amount equal to its value) to another FHSA of the holder or to an RRSP or a RRIF under which the holder is the annuitant;(f)if the arrangement is an arrangement in trust, it prohibits the trust from borrowing money or other property for the purposes of the arrangement;(g)the arrangement provides that it ceases to be a FHSA after the end of the holder’s maximum participation period;(h)the arrangement, if it involves an issuer described in subparagraph (b)(iii) of the definitionqualifying arrangementin subsection (1), includes provisions stipulating that the issuer has no right of offset with respect to the property held under the arrangement in connection with any debt or obligation owing to the issuer; and(i)the arrangement meets prescribed conditions.Marginal note:Trust not taxable(3)No tax is payable under this Part by a trust that is governed by a FHSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,(a)income includes dividends described in section 83;(b)the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and(c)the trust’s income shall be computed without reference to subsection 104(6).Marginal note:Carrying on a business(4)If tax is payable under this Part for a taxation year by application of subsection (3) by a trust that is governed by a FHSA that carries on one or more businesses at any time in the taxation year,(a)the holder of the FHSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and(b)the issuer’s liability at any time for amounts payable under this Act in respect of that business or those businesses may not exceed the total of(i)the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and(ii)the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.Marginal note:FHSA deduction(5)There may be deducted in computing a taxpayer’s income for a taxation year an amount not exceeding the lesser of(a)the amount determined by the formulaA − BwhereAis the total of all amounts each of which is the taxpayer’s annual FHSA limit for the year and each preceding taxation year, andBis the total of all amounts each of which is an amount deducted under this subsection in computing the individual’s income for preceding taxation years, and(b)the amount by which $40,000 exceeds the total of(i)the amount determined for B in paragraph (a), and(ii)all amounts transferred in the year or a preceding taxation year under paragraph 146(16)(a.2) to a FHSA under which the taxpayer is the holder.Marginal note:Withdrawals included in income(6)There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts received by the taxpayer in the year out of or under a FHSA of which the taxpayer is the holder, other than an amount that is(a)a qualifying withdrawal;(b)adesignated amountas defined in subsection 207.01(1); or(c)otherwise included in computing the income of the taxpayer.Marginal note:Transfer of amounts(7)Subsection (8) applies to an amount transferred at a particular time from a FHSA (in this subsection referred to as the “transferor FHSA”) if the following conditions are met:(a)the amount is transferred on behalf of an individual who is(i)the holder of the transferor FHSA,(ii)a spouse or common-law partner or former spouse or common-law partner of the holder of the transferor FHSA and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the holder and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or(iii)entitled to the amount as a consequence of the death of the holder of the transferor FHSA and was a spouse or common-law partner of the holder immediately before the death;(b)the amount is transferred directly to(i)another FHSA of the individual, or(ii)an RRSP or a RRIF under which the individual is the annuitant; and(c)if the transfer is not made to another FHSA of the holder of the transferor FHSA, the amount does not exceed the amount determined by the formulaA − BwhereAis the amount that is the total fair market value, immediately before the particular time, of all property held by a FHSA under which the holder of the transferor FHSA is a holder, andBis theexcess FHSA amount(as defined in subsection 207.01(1)) of the holder of the transferor FHSA at the particular time.Marginal note:Tax-free transfer(8)If this subsection applies to an amount transferred from a FHSA,(a)the amount shall not, by reason only of the transfer, be included in computing the income of any taxpayer; and(b)no deduction may be made under this Part in respect of the amount in computing the income of any taxpayer.Marginal note:Taxable transfer(9)If an amount is transferred from a FHSA to a plan or fund (in this subsection referred to as the “transferee plan”) that is a FHSA, RRSP or RRIF and subsection (8) does not apply to the amount transferred,(a)the amount is deemed to have been received from the FHSA by the holder of the FHSA;(b)the holder or annuitant of the transferee plan is deemed to have paid the amount as a contribution or premium to the transferee plan; and(c)in the case that the transferee plan is a RRIF, for the purposes of subsection 146(5) and Part X.1, the annuitant of the transferee plan is deemed to have paid the amount at the time of the transfer as a premium under a RRSP under which the annuitant is theannuitant(as defined in subsection 146(1)).Marginal note:Apportionment of transferred amount(10)If an amount is transferred from a FHSA to another FHSA, or to a RRSP or RRIF, and a portion but not all of the amount is transferred in accordance with subsection (7),(a)subsection (8) applies to the portion of the amount transferred in accordance with subsection (7), and(b)subsection (9) applies with respect to the remainder of the amount.Marginal note:Security for loan(11)If at any time in a taxation year a trust governed by a FHSA uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the year of the holder of the FHSA at that time.Marginal note:Recovery of property used as security(12)If in a taxation year a property described in subsection (11) ceases to be used as security for a loan, there may be deducted, in computing the income of the holder of the relevant FHSA for the taxation year, an amount equal to the amount determined by the formulaA − BwhereAis the amount included by application of subsection (11) in computing the income of the holder as a consequence of the property being used as security for a loan; andBis the net loss (exclusive of payments by the trust as or on account of interest) sustained by the trust in consequence of its using the property, or permitting it to be used, as security for the loan and not as a result of a change in the fair market value of the property.Marginal note:Successor holder(13)If the holder of a FHSA dies and the holder’s survivor is designated as the successor holder of the FHSA, the survivor is, immediately after the time of death, deemed to have entered into a new qualifying arrangement in respect of the FHSA unless(a)the survivor is a qualifying individual and the balance of the FHSA is transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or(b)the survivor is not a qualifying individual, in which case the balance of the FHSA is to be transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death.Marginal note:Distribution on death(14)If, as a consequence of the death of the holder of a FHSA, an amount is distributed in a taxation year from the FHSA to, or on behalf of, a beneficiary, the amount shall be included in computing the beneficiary’s income for the year.Marginal note:Deemed transfer or distribution(15)If an amount is distributed at any time from the FHSA of a deceased holder to the holder’s legal representative and a survivor of the holder is entitled to all or a portion of the amount in full or partial satisfaction of the survivor’s rights as a person beneficially interested under the deceased’s estate, the following rules apply:(a)if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that(i)it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister, and(ii)it meets the conditions to be a transferred amount under subsections (7) to (10);(b)if a payment is made from the estate to the survivor, the payment is deemed for the purposes of subsection (14) to be a distribution to the survivor as a beneficiary to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; and(c)for the purposes of subsection (14), the amount distributed to the legal representative from the FHSA is deemed to be reduced by the amounts designated in paragraphs (a) and (b).Marginal note:Arrangement ceasing to be a FHSA(16)An arrangement that was filed with the Minister as a FHSA ceases to be a FHSA at(a)subject to paragraph (b), the earliest of the following times:(i)the end of the maximum participation period of the last holder,(ii)the end of the year following the year of the death of the last holder,(iii)the time at which the arrangement ceases to be a qualifying arrangement, or(iv)the time at which the arrangement is not administered in accordance with the conditions in subsection (2); or(b)a later time specified by the Minister in writing.Marginal note:Rules applicable on FHSA cessation(17)If an arrangement ceases at a particular time to be a FHSA,(a)subsection (3) does not apply to exempt the trust governed by the arrangement from tax under this Part on the taxable income of the trust earned after the particular time;(b)if the taxpayer who was the holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all property of the arrangement immediately before the particular time is to be included in the taxpayer’s income for the taxation year that includes the particular time; and(c)if the last holder is deceased at the particular time, each beneficiary of the FHSA shall include in their income, for the taxation year that includes the particular time, the proportion of the fair market value of all property of the arrangement immediately before the particular time that the beneficiary is entitled to.Marginal note:Regulations(18)The Governor in Council may make regulations requiring issuers of FHSAs to file information returns in respect of FHSAs.
(a)the amount determined by the formulaA + B − CwhereAis the total of all contributions made to a FHSA in the year by the taxpayer (other than any contributions made after the taxpayer’s first qualifying withdrawal from a FHSA),Bis(i)if the taxpayer’s maximum participation period has not begun in a preceding taxation year, nil, and(ii)in any other case, the amount by which the amount determined under this paragraph for the preceding taxation year exceeds the annual FHSA limit for that taxation year, andCis the total of all designated amounts described in paragraph (b) of the definitiondesignated amountin subsection 207.01(1) for the year,(b)the amount determined by the formula$8,000 + D − (E − F − G)whereDis the amount of the FHSA carryforward for the taxation year;Eis the total of all amounts transferred in the year or a preceding taxation year under paragraph 146(16)(a.2) to a FHSA under which the taxpayer is the holder, andFis the total of all amounts, each of which is an amount determined in respect of each preceding taxation year that is(i)if the taxpayer had not started their maximum participation period in the preceding taxation year, nil, or(ii)in any other case, the lesser of(A)the amount determined by the formulaH − IwhereHis the amount determined for E in the preceding taxation year, andIis the amount determined for F in the preceding taxation year, and(B)$8,000 plus the amount of the FHSA carryforward for the preceding taxation year, andGis the total of all designated amounts described in paragraph (a) of the definitiondesignated amountin subsection 207.01(1), and(c)nil, if the taxation year is after the year in which(i)the taxpayer’s maximum participation period has ended, or(ii)the taxpayer has died. (plafond annuel au titre du CELIAPP)
(i)if the taxpayer’s maximum participation period has not begun in a preceding taxation year, nil, and(ii)in any other case, the amount by which the amount determined under this paragraph for the preceding taxation year exceeds the annual FHSA limit for that taxation year, and
(i)if the taxpayer had not started their maximum participation period in the preceding taxation year, nil, or(ii)in any other case, the lesser of(A)the amount determined by the formulaH − IwhereHis the amount determined for E in the preceding taxation year, andIis the amount determined for F in the preceding taxation year, and(B)$8,000 plus the amount of the FHSA carryforward for the preceding taxation year, and
(A)the amount determined by the formulaH − IwhereHis the amount determined for E in the preceding taxation year, andIis the amount determined for F in the preceding taxation year, and(B)$8,000 plus the amount of the FHSA carryforward for the preceding taxation year, and
(i)the taxpayer’s maximum participation period has ended, or(ii)the taxpayer has died. (plafond annuel au titre du CELIAPP)
(a)$8,000,(b)the amount determined by the formulaA − BwhereAis the amount determined in paragraph (b) of the definitionannual FHSA limitfor the preceding taxation year, andBis the amount determined in paragraph (a) of the definitionannual FHSA limitfor the preceding taxation year, and(c)nil, if the taxpayer had not started their maximum participation period prior to the taxation year. (montant des cotisations reporté)
(a)until the death of the individual who entered into the arrangement, the individual; and(b)after the death of the individual, the individual’s survivor, if the survivor is designated under the arrangement to become a successor of the holder and is a qualifying individual. (titulaire)
(a)begins when an individual first enters into a qualifying arrangement; and(b)ends at the end of the year following the year in which the earliest of the following events occur:(i)the 14th anniversary of the date the individual first enters into a qualifying arrangement,(ii)the individual attains 70 years of age, and(iii)the individual first makes a qualifying withdrawal from a FHSA. (période de participation maximale)
(i)the 14th anniversary of the date the individual first enters into a qualifying arrangement,(ii)the individual attains 70 years of age, and(iii)the individual first makes a qualifying withdrawal from a FHSA. (période de participation maximale)
(a)that is entered into after March 2023 between a person (in this definition referred to as the “issuer”) and a qualifying individual;(b)that is(i)an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,(ii)an annuity contract with an issuer that is a licensed annuities provider, or(iii)a deposit with an issuer that is(A)a person that is, or is eligible to become, a member of the Canadian Payments Association, or(B)a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of theCanadian Payments Act;(c)that provides for contributions to be made under the arrangement to the issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the issuer making distributions under the arrangement to the holder;(d)under which the issuer and the qualifying individual agree, at the time the arrangement is entered into, that the issuer will file with the Minister an election to register the arrangement as a FHSA, in the prescribed form and manner under the Social Insurance Number of the qualifying individual with whom the arrangement was entered into; and(e)that, at all times throughout the period that begins at the time the arrangement is entered into and that ends at the particular time, complies with the conditions in subsection (2). (arrangement admissible)
(i)an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,(ii)an annuity contract with an issuer that is a licensed annuities provider, or(iii)a deposit with an issuer that is(A)a person that is, or is eligible to become, a member of the Canadian Payments Association, or(B)a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of theCanadian Payments Act;
(A)a person that is, or is eligible to become, a member of the Canadian Payments Association, or(B)a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of theCanadian Payments Act;
(a)a housing unit located in Canada; or(b)a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada, except that, where the context so requires, a reference to a share with a right to possession of a housing unit described means the housing unit to which the share relates. (habitation admissible)
(a)is a resident of Canada;(b)is at least 18 years of age; and(c)did not, at any prior time in the calendar year or in the preceding four calendar years, inhabit as a principal place of residence a qualifying home (or what would be a qualifying home if it were located in Canada) that was owned, whether jointly with another person or otherwise, by(i)the individual, or(ii)a person who is the spouse or common-law partner of the individual at the particular time. (particulier déterminé)
(i)the individual, or(ii)a person who is the spouse or common-law partner of the individual at the particular time. (particulier déterminé)
(a)the amount is received as a result of the individual’s written request in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence;(b)the individual(i)is a resident of Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the time at which the individual acquires the qualifying home, and(ii)does not have an owner-occupied home within the meaning of paragraph 146.01(2)(a.1) in the period(A)that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and(B)that ends on the 31st day before the particular time;(c)the individual entered into an agreement in writing before the particular time for the acquisition or construction of the qualifying home before October 1 of the calendar year following the year in which the amount was received; and(d)the individual did not acquire the qualifying home more than 30 days before the particular time. (retrait admissible)
(i)is a resident of Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the time at which the individual acquires the qualifying home, and(ii)does not have an owner-occupied home within the meaning of paragraph 146.01(2)(a.1) in the period(A)that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and(B)that ends on the 31st day before the particular time;
(A)that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and(B)that ends on the 31st day before the particular time;
(a)the arrangement requires that it be maintained for the exclusive benefit of the holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the holder);(b)the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds;(c)the arrangement prohibits anyone other than the holder from making contributions under the arrangement;(d)the arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the holder under section 207.021;(e)the arrangement provides that, at the direction of the holder, the issuer shall transfer all or any part of the property held in connection with the arrangement (or an amount equal to its value) to another FHSA of the holder or to an RRSP or a RRIF under which the holder is the annuitant;(f)if the arrangement is an arrangement in trust, it prohibits the trust from borrowing money or other property for the purposes of the arrangement;(g)the arrangement provides that it ceases to be a FHSA after the end of the holder’s maximum participation period;(h)the arrangement, if it involves an issuer described in subparagraph (b)(iii) of the definitionqualifying arrangementin subsection (1), includes provisions stipulating that the issuer has no right of offset with respect to the property held under the arrangement in connection with any debt or obligation owing to the issuer; and(i)the arrangement meets prescribed conditions.
(a)income includes dividends described in section 83;(b)the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and(c)the trust’s income shall be computed without reference to subsection 104(6).
(a)the holder of the FHSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and(b)the issuer’s liability at any time for amounts payable under this Act in respect of that business or those businesses may not exceed the total of(i)the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and(ii)the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.
(i)the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and(ii)the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.
(a)the amount determined by the formulaA − BwhereAis the total of all amounts each of which is the taxpayer’s annual FHSA limit for the year and each preceding taxation year, andBis the total of all amounts each of which is an amount deducted under this subsection in computing the individual’s income for preceding taxation years, and(b)the amount by which $40,000 exceeds the total of(i)the amount determined for B in paragraph (a), and(ii)all amounts transferred in the year or a preceding taxation year under paragraph 146(16)(a.2) to a FHSA under which the taxpayer is the holder.
(i)the amount determined for B in paragraph (a), and(ii)all amounts transferred in the year or a preceding taxation year under paragraph 146(16)(a.2) to a FHSA under which the taxpayer is the holder.
(a)a qualifying withdrawal;(b)adesignated amountas defined in subsection 207.01(1); or(c)otherwise included in computing the income of the taxpayer.
(a)the amount is transferred on behalf of an individual who is(i)the holder of the transferor FHSA,(ii)a spouse or common-law partner or former spouse or common-law partner of the holder of the transferor FHSA and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the holder and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or(iii)entitled to the amount as a consequence of the death of the holder of the transferor FHSA and was a spouse or common-law partner of the holder immediately before the death;(b)the amount is transferred directly to(i)another FHSA of the individual, or(ii)an RRSP or a RRIF under which the individual is the annuitant; and(c)if the transfer is not made to another FHSA of the holder of the transferor FHSA, the amount does not exceed the amount determined by the formulaA − BwhereAis the amount that is the total fair market value, immediately before the particular time, of all property held by a FHSA under which the holder of the transferor FHSA is a holder, andBis theexcess FHSA amount(as defined in subsection 207.01(1)) of the holder of the transferor FHSA at the particular time.
(i)the holder of the transferor FHSA,(ii)a spouse or common-law partner or former spouse or common-law partner of the holder of the transferor FHSA and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the holder and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or(iii)entitled to the amount as a consequence of the death of the holder of the transferor FHSA and was a spouse or common-law partner of the holder immediately before the death;
(i)another FHSA of the individual, or(ii)an RRSP or a RRIF under which the individual is the annuitant; and
(a)the amount shall not, by reason only of the transfer, be included in computing the income of any taxpayer; and(b)no deduction may be made under this Part in respect of the amount in computing the income of any taxpayer.
(a)the amount is deemed to have been received from the FHSA by the holder of the FHSA;(b)the holder or annuitant of the transferee plan is deemed to have paid the amount as a contribution or premium to the transferee plan; and(c)in the case that the transferee plan is a RRIF, for the purposes of subsection 146(5) and Part X.1, the annuitant of the transferee plan is deemed to have paid the amount at the time of the transfer as a premium under a RRSP under which the annuitant is theannuitant(as defined in subsection 146(1)).
(a)subsection (8) applies to the portion of the amount transferred in accordance with subsection (7), and(b)subsection (9) applies with respect to the remainder of the amount.
(a)the survivor is a qualifying individual and the balance of the FHSA is transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or(b)the survivor is not a qualifying individual, in which case the balance of the FHSA is to be transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death.
(a)if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that(i)it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister, and(ii)it meets the conditions to be a transferred amount under subsections (7) to (10);(b)if a payment is made from the estate to the survivor, the payment is deemed for the purposes of subsection (14) to be a distribution to the survivor as a beneficiary to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; and(c)for the purposes of subsection (14), the amount distributed to the legal representative from the FHSA is deemed to be reduced by the amounts designated in paragraphs (a) and (b).
(i)it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister, and(ii)it meets the conditions to be a transferred amount under subsections (7) to (10);
(a)subject to paragraph (b), the earliest of the following times:(i)the end of the maximum participation period of the last holder,(ii)the end of the year following the year of the death of the last holder,(iii)the time at which the arrangement ceases to be a qualifying arrangement, or(iv)the time at which the arrangement is not administered in accordance with the conditions in subsection (2); or(b)a later time specified by the Minister in writing.
(i)the end of the maximum participation period of the last holder,(ii)the end of the year following the year of the death of the last holder,(iii)the time at which the arrangement ceases to be a qualifying arrangement, or(iv)the time at which the arrangement is not administered in accordance with the conditions in subsection (2); or
(a)subsection (3) does not apply to exempt the trust governed by the arrangement from tax under this Part on the taxable income of the trust earned after the particular time;(b)if the taxpayer who was the holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all property of the arrangement immediately before the particular time is to be included in the taxpayer’s income for the taxation year that includes the particular time; and(c)if the last holder is deceased at the particular time, each beneficiary of the FHSA shall include in their income, for the taxation year that includes the particular time, the proportion of the fair market value of all property of the arrangement immediately before the particular time that the beneficiary is entitled to.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 19, s. 31
147(1)In this section,deferred profit sharing plandeferred profit sharing planmeans a profit sharing plan accepted by the Minister for registration for the purposes of this Act, on application therefor in prescribed manner by a trustee under the plan and an employer of employees who are beneficiaries under the plan, as complying with the requirements of this section; (régime de participation différée aux bénéfices)forfeited amountforfeited amount, under a deferred profit sharing plan or a plan the registration of which has been revoked pursuant to subsection 147(14) or 147(14.1), means an amount to which a beneficiary under the plan has ceased to have any rights, other than the portion thereof, if any, that is payable as a consequence of the death of the beneficiary to a person who is entitled thereto by virtue of the participation of the beneficiary in the plan; (montant perdu)licensed annuities providerlicensed annuities providermeans a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business; (fournisseur de rentes autorisé)profit sharing planprofit sharing planmeans an arrangement under which payments computed by reference to an employer’s profits from the employer’s business, or by reference to those profits and the profits, if any, from the business of a corporation with which the employer does not deal at arm’s length, are or have been made by the employer to a trustee in trust for the benefit of employees or former employees of that employer. (régime de participation aux bénéfices)Marginal note:Participating employer(1.1)An employer is considered to participate in a profit sharing plan where the employer makes or has made payments under the plan to a trustee in trust for the benefit of employees or former employees of the employer.Marginal note:Acceptance of plan for registration(2)The Minister shall not accept for registration for the purposes of this Act any profit sharing plan unless, in the Minister’s opinion, it complies with the following conditions:(a)the plan provides that each payment made under the plan to a trustee in trust for the benefit of beneficiaries thereunder is the total of amounts each of which is required to be allocated by the trustee in the year in which it is received by the trustee, to the individual beneficiary in respect of whom the amount was so paid;(a.1)the plan includes a stipulation that no contribution may be made to the plan other than(i)a contribution made in accordance with the terms of the plan by an employer for the benefit of the employer’s employees who are beneficiaries under the plan, or(ii)an amount transferred to the plan in accordance with subsection 147(19);(b)the plan does not provide for the payment of any amount to an employee or other beneficiary thereunder by way of loan;(c)the plan provides that no part of the funds of the trust governed by the plan may be invested in notes, bonds, debentures, bankers’ acceptances or similar obligations of(i)an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, or(ii)a corporation with which that employer does not deal at arm’s length;(d)the plan provides that no part of the funds of the trust governed by the plan may be invested in shares of a corporation at least 50% of the property of which consists of notes, bonds, debentures, bankers’ acceptances or similar obligations of an employer or a corporation described in paragraph 147(2)(c);(e)the plan includes a provision stipulating that no right of a person under the plan is capable of any surrender or assignment other than(i)an assignment under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between an individual and the individual’s spouse or common-law partner, or former spouse or common-law partner, in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership,(ii)an assignment by a deceased individual’s legal representative on the distribution of the individual’s estate, and(iii)a surrender of benefits to avoid revocation of the plan’s registration;(f)the plan includes a provision stipulating that each of the trustees under the plan shall be resident in Canada;(g)the plan provides that, if a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee is not a trustee under the plan, there shall be at least 3 trustees under the plan who shall be individuals;(h)the plan provides that all income received, capital gains made and capital losses sustained by the trust governed by the plan must be allocated to beneficiaries under the plan on or before a day 90 days after the end of the year in which they were received, made or sustained, as the case may be, to the extent that they have not been allocated in years preceding that year;(i)the plan provides that each amount allocated or reallocated by a trustee under the plan to a beneficiary under the plan vests irrevocably in that beneficiary,(i)in the case of an amount allocated or reallocated before 1991, at a time that is not later than 5 years after the end of the year in which it was allocated or reallocated, unless the beneficiary becomes, before that time, an individual who is not an employee of any employer who participates in the plan, and(ii)in the case of any other amount, not later than the later of the time of allocation or reallocation and the day on which the beneficiary completes a period of 24 consecutive months as a beneficiary under the plan or under any other deferred profit sharing plan for which the plan can reasonably be considered to have been substituted;(i.1)the plan requires that each forfeited amount under the plan and all earnings of the plan reasonably attributable thereto be paid to employers who participate in the plan, or be reallocated to beneficiaries under the plan, on or before the later of December 31, 1991 and December 31 of the year immediately following the calendar year in which the amount is forfeited, or such later time as is permitted in writing by the Minister under subsection 147(2.2);(j)the plan provides that a trustee under the plan inform, in writing, all new beneficiaries under the plan of their rights under the plan;(k)the plan provides that, in respect of each beneficiary under the plan who has been employed by an employer who participates in the plan, all amounts vested under the plan in the beneficiary become payable(i)to the beneficiary, or(ii)in the event of the beneficiary’s death, to another person designated by the beneficiary or to the beneficiary’s estate,not later than the earlier of(iii)the end of the year in which the beneficiary attains 71 years of age, and(iv)90 days after the earliest of(A)the death of the beneficiary,(B)the day on which the beneficiary ceases to be employed by an employer who participates in the plan where, at the time of ceasing to be so employed, the beneficiary is not employed by another employer who participates in the plan, and(C)the termination or winding-up of the plan,except that the plan may provide that, on election by the beneficiary, all or any part of the amounts payable to the beneficiary may be paid(v)in equal instalments payable not less frequently than annually over a period not exceeding 10 years from the day on which the amount became payable, or(vi)by a trustee under the plan to a licensed annuities provider to purchase for the beneficiary an annuity (other than an advanced life deferred annuity), if(A)payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 71 years of age, and(B)the guaranteed term, if any, of the annuity does not exceed 15 years;(k.1)the plan requires that no benefit or loan, other than(i)a benefit the amount of which is required to be included in computing the beneficiary’s income,(ii)an amount referred to in paragraph 147(10)(b),(ii.1)an amount paid pursuant to or under the plan by a trustee under the plan to a licensed annuities provider to purchase for a beneficiary under the plan an annuity to which subparagraph (k)(vi) or (19)(d)(v) applies,(iii)a benefit derived from an allocation or reallocation referred to in subsection 147(2), or(iv)the benefit derived from the provision of administrative or investment services in respect of the plan,that is conditional in any way on the existence of the plan may be extended to a beneficiary thereunder or to a person with whom the beneficiary was not dealing at arm’s length;(k.2)the plan provides that no individual who is(i)a person related to the employer,(ii)a person who is, or is related to, a specified shareholder of the employer or of a corporation related to the employer,(iii)where the employer is a partnership, a person related to a member of the partnership, or(iv)where the employer is a trust, a person who is, or is related to, a beneficiary under the trustmay become a beneficiary under the plan; and(l)the plan, in all other respects, complies with regulations of the Governor in Council made on the recommendation of the Minister of Finance.Marginal note:Terms limiting contributions(2.1)The Minister shall not accept for registration for the purposes of this Act a profit sharing plan unless it includes terms that are adequate to ensure that the requirements of subsection 147(5.1) in respect of the plan will be satisfied for each calendar year.Marginal note:Reallocation of forfeitures(2.2)The Minister may, on written application, extend the time for satisfying the requirements of paragraph 147(2)(i.1) where(a)the total of the forfeited amounts arising in a calendar year is greater than normal because of unusual circumstances; and(b)the forfeited amounts are to be reallocated on a reasonable basis to a majority of beneficiaries under the plan.Marginal note:Acceptance of employees profit sharing plan for registration(3)The Minister shall not accept for registration for the purposes of this Act any employees profit sharing plan unless all the capital gains of or made by the trust governed by the plan before the date of application for registration of the plan and all the capital losses of or sustained by the trust before that date have been allocated by the trustee under the plan to employees and other beneficiaries thereunder.Marginal note:Capital gains determined(4)For the purposes of subsections 147(3) and 147(11), such amount as may be determined by the Minister, on request in prescribed manner by the trustee of a trust governed by an employees profit sharing plan, shall be deemed to be the amount of(a)the capital gains of or made by the trust governed by the plan before the date of application for registration of the plan, or(b)the capital losses of or sustained by the trust before that date,as the case may be.Marginal note:Registration date(5)Where a profit sharing plan is accepted by the Minister for registration as a deferred profit sharing plan, the plan shall be deemed to have become registered as a deferred profit sharing plan(a)on the date the application for registration of the plan was made; or(b)where in the application for registration a later date is specified as the date on which the plan is to commence as a deferred profit sharing plan, on that date.Marginal note:Contribution limits(5.1)For the purposes of subsections 147(2.1) and 147(9) and paragraph 147(14)(c.4), the requirements of this subsection in respect of a deferred profit sharing plan are satisfied for a calendar year if, in the case of each beneficiary under the plan and each employer in respect of whom the beneficiary’s pension credit (as prescribed by regulation) for the year under the plan is greater than nil,(a)the total of all amounts each of which is the beneficiary’s pension credit (as prescribed by regulation) for the year in respect of the employer under a deferred profit sharing plan does not exceed the lesser of(i)1/2 of the money purchase limit for the year, and(ii)18% of the amount that would be the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) from the employer for the year if the definitioncompensationin subsection 147.1(1) were read without reference to paragraph (b) of that definition;(b)the total of all amounts each of which is the beneficiary’s pension credit (as prescribed by regulation) for the year under a deferred profit sharing plan in respect of(i)the employer, or(ii)any other employer who, at any time in the year, does not deal at arm’s length with the employerdoes not exceed 1/2 of the money purchase limit for the year; and(c)the total of(i)the beneficiary’s pension adjustment for the year in respect of the employer, and(ii)the total of all amounts each of which is the beneficiary’s pension adjustment for the year in respect of any other employer who, at any time in the year, does not deal at arm’s length with the employerdoes not exceed the lesser of(iii)the money purchase limit for the year, and(iv)18% of the total of all amounts each of which is the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) for the year from the employer or any other employer referred to in subparagraph 147(5.1)(c)(ii).(5.11)[Repealed, 2013, c. 34, s. 301]Marginal note:Deferred plan not employees profit sharing plan(6)For a period during which a plan is a deferred profit sharing plan, the plan shall be deemed, for the purposes of this Act, not to be an employees profit sharing plan.Marginal note:No tax while trust governed by plan(7)No tax is payable under this Part by a trust on the taxable income of the trust for a period during which the trust was governed by a deferred profit sharing plan.Marginal note:Amount of employer’s contribution deductible(8)Subject to subsection 147(9), there may be deducted in computing the income of an employer for a taxation year the total of all amounts each of which is an amount paid by the employer in the year or within 120 days after the end of the year to a trustee under a deferred profit sharing plan for the benefit of the employer’s employees who are beneficiaries under the plan, to the extent that the amount was paid in accordance with the terms of the plan and was not deducted in computing the employer’s income for a preceding taxation year.Marginal note:Limitation on deduction(9)Where the requirements of subsection 147(5.1) in respect of a deferred profit sharing plan are not satisfied for a calendar year by reason that the pension credits of a beneficiary under the plan in respect of a particular employer do not comply with paragraph 147(5.1)(a) or the beneficiary’s pension credits or pension adjustments in respect of a particular employer and other employers who do not deal at arm’s length with the particular employer do not comply with paragraph 147(5.1)(b) or 147(5.1)(c), the particular employer is not entitled to a deduction under subsection 147(8) in computing the particular employer’s income for any taxation year in respect of an amount paid to a trustee under the plan in the calendar year except to the extent expressly permitted in writing by the Minister, and, for the purposes of this subsection, an amount paid to a trustee of a deferred profit sharing plan in the first two months of a calendar year shall be deemed to have been paid in the immediately preceding year and not to have been paid in the year to the extent that the amount can reasonably be considered to be in respect of the immediately preceding year.Marginal note:No deduction(9.1)Notwithstanding subsection 147(8), no deduction shall be made in computing the income of an employer for a taxation year in respect of an amount paid by the employer for the year to a trustee under a deferred profit sharing plan in respect of a beneficiary who is described in paragraph 147(2)(k.2) in respect of the plan.Marginal note:Amounts received taxable(10)There shall be included in computing the income of a beneficiary under a deferred profit sharing plan for a taxation year the amount, if any, by which(a)the total of all amounts received by the beneficiary in the year from a trustee under the plan (other than as a result of acquiring an annuity described in subparagraph 147(2)(k)(vi) under which the beneficiary is the annuitant)exceeds(b)the total of all amounts each of which is an amount determined for the year under subsection 147(10.1), 147(11) or 147(12) in relation to the plan and in respect of the beneficiary.Marginal note:Single payment on retirement, etc.(10.1)For the purposes of subsections 147(10) and 147(10.2), where a beneficiary under a deferred profit sharing plan has received, in a taxation year and when the beneficiary was resident in Canada, from a trustee under the plan a single payment that included shares of the capital stock of a corporation that was an employer who contributed to the plan or of a corporation with which the employer did not deal at arm’s length on the beneficiary’s withdrawal from the plan or retirement from employment or on the death of an employee or former employee and has made an election in respect thereof in prescribed manner and prescribed form, the amount determined for the year under this subsection in relation to the plan and in respect of the beneficiary is the amount, if any, by which the fair market value of those shares, immediately before the single payment was made, exceeds the cost amount to the plan of those shares at that time.Marginal note:Idem(10.2)Where a trustee under a deferred profit sharing plan has at any time in a taxation year made under the plan a single payment that included shares referred to in subsection 147(10.1) to a beneficiary who was resident in Canada at the time and the beneficiary has made an election under that subsection in respect of that payment,(a)the trustee shall be deemed to have disposed of those shares for proceeds of disposition equal to the cost amount to the trust of those shares immediately before the single payment was made;(b)the cost to the beneficiary of those shares shall be deemed to be their cost amount to the trust immediately before the single payment was made;(c)the cost to the beneficiary of each of those shares shall be deemed to be the amount determined by the formulaA × B/CwhereAis the amount determined under paragraph 147(10.2)(a) in respect of all of those shares,Bis the fair market value of that share at the time the single payment was made, andCis the fair market value of all those shares at the time the single payment was made; and(d)for the purposes of paragraph 60(j), the cost to the beneficiary of those shares is an eligible amount in respect of the beneficiary for the year.Marginal note:Amount contributed to or forfeited under a plan(10.3)There shall be included in computing the income for a taxation year of a beneficiary described in paragraph 147(2)(k.2) the total of amounts allocated or reallocated to the beneficiary in the year in respect of(a)any amount contributed after December 1, 1982 by an employer to, or(b)any forfeited amount undera deferred profit sharing plan or a plan the registration of which has been revoked pursuant to subsection 147(14) or 147(14.1).Marginal note:Income on disposal of shares(10.4)Where a taxpayer has a share in respect of which the taxpayer has made an election under subsection 147(10.1), there shall be included in computing the taxpayer’s income for the taxation year in which the taxpayer disposed of or exchanged the share or ceased to be a resident of Canada, whichever is the earlier, the amount, if any, by which the fair market value of the share at the time the taxpayer acquired it exceeds the cost to the taxpayer, determined under paragraph (10.2)(c), of the share at the time the taxpayer acquired it.Marginal note:Amended contract(10.5)Where an amendment is made to an annuity contract to which subparagraph (2)(k)(vi) applies, the sole effect of which is to defer annuity commencement to no later than the end of the calendar year in which the individual in respect of whom the contract was purchased attains 71 years of age, the annuity contract is deemed not to have been disposed of by the individual.(10.6)[Repealed, 2007, c. 29, s. 20]Marginal note:Portion of receipts deductible(11)For the purposes of subsections 147(10), 147(10.1) and 147(12), where an amount was received in a taxation year from a trustee under a deferred profit sharing plan by an employee or other beneficiary thereunder, and the employee was a beneficiary under the plan at a time when the plan was an employees profit sharing plan, the amount determined for the year under this subsection in relation to the plan and in respect of the beneficiary is such portion of the total of the amounts so received in the year as does not exceed(a)the total of(i)each amount included in respect of the plan in computing the income of the employee for the year or for a previous taxation year by virtue of section 144,(ii)each amount paid by the employee to a trustee under the plan at a time when it was an employees profit sharing plan, and(iii)each amount that was allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital gain made by the trust before 1972,minus(b)the total of(i)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was an employees profit sharing plan,(ii)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was a deferred profit sharing plan, and(iii)each amount allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital loss sustained by the trust before 1972.Marginal note:Idem(12)For the purposes of subsections 147(10) and 147(10.1), where an amount was received in a taxation year from a trustee under a deferred profit sharing plan by an employee or other beneficiary thereunder, and the employee has made a payment in the year or a previous year to a trustee under the plan at a time when the plan was a deferred profit sharing plan, the amount determined for the year under this subsection in relation to the plan and in respect of the beneficiary is such portion of the total of the amounts so received in the year (minus any amount determined for the year under subsection 147(11) in relation to the plan and in respect of the beneficiary) as does not exceed(a)the total of all amounts each of which was so paid by the employee in the year or a previous year to the extent that the payment was not deductible in computing the employee’s income,minus(b)the total of all amounts each of which was received by the employee or other beneficiary from a trustee under the plan, at a time when it was a deferred profit sharing plan, to the extent that it was included in the computation of an amount determined for a previous year under this subsection in relation to the plan and in respect of the employee or other beneficiary.Marginal note:Appropriation of trust property by employer(13)Where funds or property of a trust governed by a deferred profit sharing plan have been appropriated in any manner whatever to or for the benefit of a taxpayer who is(a)an employer by whom payments are made in trust to a trustee under the plan, or(b)a corporation with which that employer does not deal at arm’s length,otherwise than in payment of or on account of shares of the capital stock of the taxpayer purchased by the trust, the amount or value of the funds or property so appropriated shall be included in computing the income of the taxpayer for the taxation year of the taxpayer in which the funds or property were so appropriated, unless the funds or property or an amount in lieu thereof equal to the amount or value of the funds or property was repaid to the trust within one year from the end of the taxation year, and it is established by subsequent events or otherwise that the repayment was not made as part of a series of appropriations and repayments.Marginal note:Revocation of registration(14)Where, at any time after a profit sharing plan has been accepted by the Minister for registration for the purposes of this Act,(a)the plan has been revised or amended or a new plan has been substituted therefor, and the plan as revised or amended or the new plan substituted therefor, as the case may be, ceased to comply with the requirements of this section for its acceptance by the Minister for registration for the purposes of this Act,(b)any provision of the plan has not been complied with,(c)the plan is a plan that did not, as of January 1, 1968,(i)comply with the requirements of paragraphs 147(2)(a), 147(2)(b) to 147(2)(h), 147(2)(j) and 147(2)(k), and paragraph 147(2)(i) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read on January 1, 1972, and(ii)provide that the amounts held by the trust for the benefit of beneficiaries thereunder that remained unallocated on December 31, 1967 must be allocated or reallocated, as the case may be, before 1969,(c.1)the plan becomes a revocable plan pursuant to subsection 147(21),(c.2)the plan does not comply with the requirements of paragraphs 147(2)(a) to 147(2)(k) and 147(2)(l),(c.3)in the case of a plan that became registered after March, 1983, the plan does not comply with the requirements of paragraphs 147(2)(k.1) and 147(2)(k.2),(c.4)the requirements of subsection 147(5.1) in respect of the plan are not satisfied for a calendar year, or(c.5)an employer who participates in the plan fails to file an information return reporting a pension adjustment of a beneficiary under the plan as and when required by regulation,the Minister may revoke the registration of the plan,(d)where paragraph 147(14)(a) applies, as of the date that the plan ceased so to comply, or any subsequent date,(e)where paragraph 147(14)(b) applies, as of the date that any provision of the plan was not so complied with, or any subsequent date,(f)where paragraph 147(14)(c) applies, as of any date following January 1, 1968,(g)where paragraph 147(14)(c.1) applies, as of the date on which the plan became a revocable plan, or any subsequent date,(h)where paragraph 147(14)(c.2) or 147(14)(c.3) applies, as of the date on which the plan did not so comply, or any subsequent date, but not before January 1, 1991,(i)where paragraph 147(14)(c.4) applies, as of the end of the year for which the requirements of subsection 147(5.1) in respect of the plan are not satisfied, or any subsequent date, and(j)where paragraph 147(14)(c.5) applies, as of any date after the date by which the information return was required to be filed,and the Minister shall thereafter give notice of the revocation by registered mail to a trustee under the plan and to an employer of employees who are beneficiaries under the plan.Marginal note:Idem(14.1)Where on any day after June 30, 1982 a benefit or loan is extended or continues to be extended as a consequence of the existence of a deferred profit sharing plan and that benefit or loan would be prohibited if the plan met the requirement for registration contained in paragraph 147(2)(k.1), the Minister may revoke the registration of the plan as of that or any subsequent day that is specified by the Minister in a notice given by registered mail to a trustee under the plan and to an employer of employees who are beneficiaries under the plan.Marginal note:Rules applicable to revoked plan(15)Where the Minister revokes the registration of a deferred profit sharing plan, the plan (in this section referred to as the “revoked plan”) shall be deemed, for the purposes of this Act, not to be a deferred profit sharing plan, and notwithstanding any other provision of this Act, the following rules shall apply:(a)the revoked plan shall not be accepted for registration for the purposes of this Act or be deemed to have become registered as a deferred profit sharing plan at any time within a period of one year commencing on the date the plan became a revoked plan;(b)subsection 147(7) does not apply to exempt the trust governed by the plan from tax under this Part on the taxable income of the trust for a taxation year in which, at any time therein, the trust was governed by the revoked plan;(c)no deduction shall be made by an employer in computing the employer’s income for a taxation year in respect of an amount paid by the employer to a trustee under the plan at a time when it was a revoked plan;(d)there shall be included in computing the income of a taxpayer for a taxation year(i)all amounts received by the taxpayer in the year from a trustee under the revoked plan that, by virtue of subsection 147(10), would have been so included if the revoked plan had been a deferred profit sharing plan at the time the taxpayer received those amounts, and(ii)the amount or value of any funds or property appropriated to or for the benefit of the taxpayer in the year that, by virtue of subsection 147(13), would have been so included if the revoked plan had been a deferred profit sharing plan at the time of the appropriation of the funds or property; and(e)the revoked plan shall be deemed, for the purposes of this Act, not to be an employees profit sharing plan or a retirement compensation arrangement.Marginal note:Payments out of profits(16)Where the terms of an arrangement under which an employer makes payments to a trustee specifically provide that the payments shall be made “out of profits”, the arrangement shall be deemed, for the purpose of subsection 147(1), to be an arrangement for payments “computed by reference to an employer’s profits from the employer’s business”.Interpretation ofother beneficiary(17)Where the expression “employee or other beneficiary” under a profit sharing plan occurs in this section, the wordsother beneficiaryshall be construed as meaning any person, other than the employee, to whom any amount is or may become payable by a trustee under the plan as a result of payments made to the trustee under the plan in trust for the benefit of employees, including the employee.Marginal note:Inadequate consideration on purchase from or sale to trust(18)Where a trust governed by a deferred profit sharing plan or revoked plan(a)disposes of property to a taxpayer for a consideration less than the fair market value of the property at the time of the transaction, or for no consideration, or(b)acquires property from a taxpayer for a consideration greater than the fair market value of the property at the time of the transaction,the difference between that fair market value and the consideration, if any,(c)shall, for the purposes of subsections 147(10) and 147(15), be deemed to be an amount received by the taxpayer at the time of the disposal or acquisition, as the case may be, from a trustee under the plan as if the taxpayer were a beneficiary under the plan, and(d)is an amount taxable under section 201 for the calendar year in which the trust disposes of or acquires the property, as the case may be.Marginal note:Transfer to RPP, RRSP or DPSP(19)An amount is transferred from a deferred profit sharing plan in accordance with this subsection if the amount(a)is not part of a series of periodic payments;(b)is transferred on behalf of an individual(i)who is an employee or former employee of an employer who participated in the plan on the employee’s behalf, or(ii)who is a spouse or common-law partner, or former spouse or common-law partner, of an employee or former employee referred to in subparagraph (i) and who is entitled to the amount(A)as a consequence of the death of the employee or former employee, or(B)under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the employee or former employee and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership;in full or partial satisfaction of the individual’s entitlement to benefits under the plan;(c)would, if it were paid directly to the individual, be included under subsection 147(10) in computing the individual’s income for a taxation year; and(d)is transferred for the benefit of the individual directly to(i)a registered pension plan,(ii)a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)),(iii)a deferred profit sharing plan that can reasonably be expected to have at least 5 beneficiaries at all times throughout the calendar year in which the transfer is made,(iv)a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)), or(v)a licensed annuities provider to acquire an advanced life deferred annuity, if the individual is an employee or former employee of an employer who participated in the plan on the employee’s behalf.Marginal note:Taxation of amount transferred(20)Where an amount is transferred on behalf of an individual in accordance with subsection 147(19),(a)the amount shall not, by reason only of that transfer, be included by virtue of this section in computing the income of any taxpayer; and(b)no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer.Marginal note:Restriction re transfers(21)A deferred profit sharing plan becomes a revocable plan at any time that an amount is transferred from the plan to a registered pension plan, a registered retirement savings plan or another deferred profit sharing plan unless(a)the transfer is in accordance with subsection 147(19); or(b)the amount is deductible under paragraph 60(j) or 60(j.2) of this Act or paragraph 60(k) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, by the individual on whose behalf the transfer is made.Marginal note:Excess transfer(22)Where(a)the transfer of an amount from a deferred profit sharing plan in a calendar year on behalf of a beneficiary under the plan would, but for this subsection, be in accordance with subsection 147(19), and(b)the requirements of subsection 147(5.1) in respect of the plan are not satisfied for the year by reason that the beneficiary’s pension credits or pension adjustments do not comply with any of paragraphs 147(5.1)(a) to 147(5.1)(c),such portion of the amount transferred as may reasonably be considered to derive from amounts allocated or reallocated to the beneficiary in the year or from earnings reasonably attributable to those amounts shall, except to the extent otherwise expressly provided in writing by the Minister, be deemed to be an amount that was not transferred in accordance with subsection 147(19).
(a)the plan provides that each payment made under the plan to a trustee in trust for the benefit of beneficiaries thereunder is the total of amounts each of which is required to be allocated by the trustee in the year in which it is received by the trustee, to the individual beneficiary in respect of whom the amount was so paid;(a.1)the plan includes a stipulation that no contribution may be made to the plan other than(i)a contribution made in accordance with the terms of the plan by an employer for the benefit of the employer’s employees who are beneficiaries under the plan, or(ii)an amount transferred to the plan in accordance with subsection 147(19);(b)the plan does not provide for the payment of any amount to an employee or other beneficiary thereunder by way of loan;(c)the plan provides that no part of the funds of the trust governed by the plan may be invested in notes, bonds, debentures, bankers’ acceptances or similar obligations of(i)an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, or(ii)a corporation with which that employer does not deal at arm’s length;(d)the plan provides that no part of the funds of the trust governed by the plan may be invested in shares of a corporation at least 50% of the property of which consists of notes, bonds, debentures, bankers’ acceptances or similar obligations of an employer or a corporation described in paragraph 147(2)(c);(e)the plan includes a provision stipulating that no right of a person under the plan is capable of any surrender or assignment other than(i)an assignment under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between an individual and the individual’s spouse or common-law partner, or former spouse or common-law partner, in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership,(ii)an assignment by a deceased individual’s legal representative on the distribution of the individual’s estate, and(iii)a surrender of benefits to avoid revocation of the plan’s registration;(f)the plan includes a provision stipulating that each of the trustees under the plan shall be resident in Canada;(g)the plan provides that, if a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee is not a trustee under the plan, there shall be at least 3 trustees under the plan who shall be individuals;(h)the plan provides that all income received, capital gains made and capital losses sustained by the trust governed by the plan must be allocated to beneficiaries under the plan on or before a day 90 days after the end of the year in which they were received, made or sustained, as the case may be, to the extent that they have not been allocated in years preceding that year;(i)the plan provides that each amount allocated or reallocated by a trustee under the plan to a beneficiary under the plan vests irrevocably in that beneficiary,(i)in the case of an amount allocated or reallocated before 1991, at a time that is not later than 5 years after the end of the year in which it was allocated or reallocated, unless the beneficiary becomes, before that time, an individual who is not an employee of any employer who participates in the plan, and(ii)in the case of any other amount, not later than the later of the time of allocation or reallocation and the day on which the beneficiary completes a period of 24 consecutive months as a beneficiary under the plan or under any other deferred profit sharing plan for which the plan can reasonably be considered to have been substituted;(i.1)the plan requires that each forfeited amount under the plan and all earnings of the plan reasonably attributable thereto be paid to employers who participate in the plan, or be reallocated to beneficiaries under the plan, on or before the later of December 31, 1991 and December 31 of the year immediately following the calendar year in which the amount is forfeited, or such later time as is permitted in writing by the Minister under subsection 147(2.2);(j)the plan provides that a trustee under the plan inform, in writing, all new beneficiaries under the plan of their rights under the plan;(k)the plan provides that, in respect of each beneficiary under the plan who has been employed by an employer who participates in the plan, all amounts vested under the plan in the beneficiary become payable(i)to the beneficiary, or(ii)in the event of the beneficiary’s death, to another person designated by the beneficiary or to the beneficiary’s estate,not later than the earlier of(iii)the end of the year in which the beneficiary attains 71 years of age, and(iv)90 days after the earliest of(A)the death of the beneficiary,(B)the day on which the beneficiary ceases to be employed by an employer who participates in the plan where, at the time of ceasing to be so employed, the beneficiary is not employed by another employer who participates in the plan, and(C)the termination or winding-up of the plan,except that the plan may provide that, on election by the beneficiary, all or any part of the amounts payable to the beneficiary may be paid(v)in equal instalments payable not less frequently than annually over a period not exceeding 10 years from the day on which the amount became payable, or(vi)by a trustee under the plan to a licensed annuities provider to purchase for the beneficiary an annuity (other than an advanced life deferred annuity), if(A)payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 71 years of age, and(B)the guaranteed term, if any, of the annuity does not exceed 15 years;(k.1)the plan requires that no benefit or loan, other than(i)a benefit the amount of which is required to be included in computing the beneficiary’s income,(ii)an amount referred to in paragraph 147(10)(b),(ii.1)an amount paid pursuant to or under the plan by a trustee under the plan to a licensed annuities provider to purchase for a beneficiary under the plan an annuity to which subparagraph (k)(vi) or (19)(d)(v) applies,(iii)a benefit derived from an allocation or reallocation referred to in subsection 147(2), or(iv)the benefit derived from the provision of administrative or investment services in respect of the plan,that is conditional in any way on the existence of the plan may be extended to a beneficiary thereunder or to a person with whom the beneficiary was not dealing at arm’s length;(k.2)the plan provides that no individual who is(i)a person related to the employer,(ii)a person who is, or is related to, a specified shareholder of the employer or of a corporation related to the employer,(iii)where the employer is a partnership, a person related to a member of the partnership, or(iv)where the employer is a trust, a person who is, or is related to, a beneficiary under the trustmay become a beneficiary under the plan; and(l)the plan, in all other respects, complies with regulations of the Governor in Council made on the recommendation of the Minister of Finance.
(i)a contribution made in accordance with the terms of the plan by an employer for the benefit of the employer’s employees who are beneficiaries under the plan, or(ii)an amount transferred to the plan in accordance with subsection 147(19);
(i)an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, or(ii)a corporation with which that employer does not deal at arm’s length;
(i)an assignment under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between an individual and the individual’s spouse or common-law partner, or former spouse or common-law partner, in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership,(ii)an assignment by a deceased individual’s legal representative on the distribution of the individual’s estate, and(iii)a surrender of benefits to avoid revocation of the plan’s registration;
(i)in the case of an amount allocated or reallocated before 1991, at a time that is not later than 5 years after the end of the year in which it was allocated or reallocated, unless the beneficiary becomes, before that time, an individual who is not an employee of any employer who participates in the plan, and(ii)in the case of any other amount, not later than the later of the time of allocation or reallocation and the day on which the beneficiary completes a period of 24 consecutive months as a beneficiary under the plan or under any other deferred profit sharing plan for which the plan can reasonably be considered to have been substituted;
(i)to the beneficiary, or(ii)in the event of the beneficiary’s death, to another person designated by the beneficiary or to the beneficiary’s estate,
(iii)the end of the year in which the beneficiary attains 71 years of age, and(iv)90 days after the earliest of(A)the death of the beneficiary,(B)the day on which the beneficiary ceases to be employed by an employer who participates in the plan where, at the time of ceasing to be so employed, the beneficiary is not employed by another employer who participates in the plan, and(C)the termination or winding-up of the plan,except that the plan may provide that, on election by the beneficiary, all or any part of the amounts payable to the beneficiary may be paid(v)in equal instalments payable not less frequently than annually over a period not exceeding 10 years from the day on which the amount became payable, or(vi)by a trustee under the plan to a licensed annuities provider to purchase for the beneficiary an annuity (other than an advanced life deferred annuity), if(A)payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 71 years of age, and(B)the guaranteed term, if any, of the annuity does not exceed 15 years;
(A)the death of the beneficiary,(B)the day on which the beneficiary ceases to be employed by an employer who participates in the plan where, at the time of ceasing to be so employed, the beneficiary is not employed by another employer who participates in the plan, and(C)the termination or winding-up of the plan,
(A)payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 71 years of age, and(B)the guaranteed term, if any, of the annuity does not exceed 15 years;
(i)a benefit the amount of which is required to be included in computing the beneficiary’s income,(ii)an amount referred to in paragraph 147(10)(b),(ii.1)an amount paid pursuant to or under the plan by a trustee under the plan to a licensed annuities provider to purchase for a beneficiary under the plan an annuity to which subparagraph (k)(vi) or (19)(d)(v) applies,(iii)a benefit derived from an allocation or reallocation referred to in subsection 147(2), or(iv)the benefit derived from the provision of administrative or investment services in respect of the plan,
(i)a person related to the employer,(ii)a person who is, or is related to, a specified shareholder of the employer or of a corporation related to the employer,(iii)where the employer is a partnership, a person related to a member of the partnership, or(iv)where the employer is a trust, a person who is, or is related to, a beneficiary under the trust
(a)the total of the forfeited amounts arising in a calendar year is greater than normal because of unusual circumstances; and(b)the forfeited amounts are to be reallocated on a reasonable basis to a majority of beneficiaries under the plan.
(a)the capital gains of or made by the trust governed by the plan before the date of application for registration of the plan, or(b)the capital losses of or sustained by the trust before that date,
(a)on the date the application for registration of the plan was made; or(b)where in the application for registration a later date is specified as the date on which the plan is to commence as a deferred profit sharing plan, on that date.
(a)the total of all amounts each of which is the beneficiary’s pension credit (as prescribed by regulation) for the year in respect of the employer under a deferred profit sharing plan does not exceed the lesser of(i)1/2 of the money purchase limit for the year, and(ii)18% of the amount that would be the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) from the employer for the year if the definitioncompensationin subsection 147.1(1) were read without reference to paragraph (b) of that definition;(b)the total of all amounts each of which is the beneficiary’s pension credit (as prescribed by regulation) for the year under a deferred profit sharing plan in respect of(i)the employer, or(ii)any other employer who, at any time in the year, does not deal at arm’s length with the employerdoes not exceed 1/2 of the money purchase limit for the year; and(c)the total of(i)the beneficiary’s pension adjustment for the year in respect of the employer, and(ii)the total of all amounts each of which is the beneficiary’s pension adjustment for the year in respect of any other employer who, at any time in the year, does not deal at arm’s length with the employerdoes not exceed the lesser of(iii)the money purchase limit for the year, and(iv)18% of the total of all amounts each of which is the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) for the year from the employer or any other employer referred to in subparagraph 147(5.1)(c)(ii).
(i)1/2 of the money purchase limit for the year, and(ii)18% of the amount that would be the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) from the employer for the year if the definitioncompensationin subsection 147.1(1) were read without reference to paragraph (b) of that definition;
(i)the employer, or(ii)any other employer who, at any time in the year, does not deal at arm’s length with the employer
(i)the beneficiary’s pension adjustment for the year in respect of the employer, and(ii)the total of all amounts each of which is the beneficiary’s pension adjustment for the year in respect of any other employer who, at any time in the year, does not deal at arm’s length with the employer
(iii)the money purchase limit for the year, and(iv)18% of the total of all amounts each of which is the beneficiary’s compensation (within the meaning assigned by subsection 147.1(1)) for the year from the employer or any other employer referred to in subparagraph 147(5.1)(c)(ii).
(a)the total of all amounts received by the beneficiary in the year from a trustee under the plan (other than as a result of acquiring an annuity described in subparagraph 147(2)(k)(vi) under which the beneficiary is the annuitant)
(b)the total of all amounts each of which is an amount determined for the year under subsection 147(10.1), 147(11) or 147(12) in relation to the plan and in respect of the beneficiary.
(a)the trustee shall be deemed to have disposed of those shares for proceeds of disposition equal to the cost amount to the trust of those shares immediately before the single payment was made;(b)the cost to the beneficiary of those shares shall be deemed to be their cost amount to the trust immediately before the single payment was made;(c)the cost to the beneficiary of each of those shares shall be deemed to be the amount determined by the formulaA × B/CwhereAis the amount determined under paragraph 147(10.2)(a) in respect of all of those shares,Bis the fair market value of that share at the time the single payment was made, andCis the fair market value of all those shares at the time the single payment was made; and(d)for the purposes of paragraph 60(j), the cost to the beneficiary of those shares is an eligible amount in respect of the beneficiary for the year.
(a)any amount contributed after December 1, 1982 by an employer to, or(b)any forfeited amount under
(a)the total of(i)each amount included in respect of the plan in computing the income of the employee for the year or for a previous taxation year by virtue of section 144,(ii)each amount paid by the employee to a trustee under the plan at a time when it was an employees profit sharing plan, and(iii)each amount that was allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital gain made by the trust before 1972,
(i)each amount included in respect of the plan in computing the income of the employee for the year or for a previous taxation year by virtue of section 144,(ii)each amount paid by the employee to a trustee under the plan at a time when it was an employees profit sharing plan, and(iii)each amount that was allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital gain made by the trust before 1972,
(b)the total of(i)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was an employees profit sharing plan,(ii)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was a deferred profit sharing plan, and(iii)each amount allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital loss sustained by the trust before 1972.
(i)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was an employees profit sharing plan,(ii)each amount received by the employee or other beneficiary in a previous taxation year from a trustee under the plan at a time when it was a deferred profit sharing plan, and(iii)each amount allocated to the employee or other beneficiary by a trustee under the plan, at a time when it was an employees profit sharing plan, in respect of a capital loss sustained by the trust before 1972.
(a)the total of all amounts each of which was so paid by the employee in the year or a previous year to the extent that the payment was not deductible in computing the employee’s income,
(b)the total of all amounts each of which was received by the employee or other beneficiary from a trustee under the plan, at a time when it was a deferred profit sharing plan, to the extent that it was included in the computation of an amount determined for a previous year under this subsection in relation to the plan and in respect of the employee or other beneficiary.
(a)an employer by whom payments are made in trust to a trustee under the plan, or(b)a corporation with which that employer does not deal at arm’s length,
(a)the plan has been revised or amended or a new plan has been substituted therefor, and the plan as revised or amended or the new plan substituted therefor, as the case may be, ceased to comply with the requirements of this section for its acceptance by the Minister for registration for the purposes of this Act,(b)any provision of the plan has not been complied with,(c)the plan is a plan that did not, as of January 1, 1968,(i)comply with the requirements of paragraphs 147(2)(a), 147(2)(b) to 147(2)(h), 147(2)(j) and 147(2)(k), and paragraph 147(2)(i) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read on January 1, 1972, and(ii)provide that the amounts held by the trust for the benefit of beneficiaries thereunder that remained unallocated on December 31, 1967 must be allocated or reallocated, as the case may be, before 1969,(c.1)the plan becomes a revocable plan pursuant to subsection 147(21),(c.2)the plan does not comply with the requirements of paragraphs 147(2)(a) to 147(2)(k) and 147(2)(l),(c.3)in the case of a plan that became registered after March, 1983, the plan does not comply with the requirements of paragraphs 147(2)(k.1) and 147(2)(k.2),(c.4)the requirements of subsection 147(5.1) in respect of the plan are not satisfied for a calendar year, or(c.5)an employer who participates in the plan fails to file an information return reporting a pension adjustment of a beneficiary under the plan as and when required by regulation,
(i)comply with the requirements of paragraphs 147(2)(a), 147(2)(b) to 147(2)(h), 147(2)(j) and 147(2)(k), and paragraph 147(2)(i) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read on January 1, 1972, and(ii)provide that the amounts held by the trust for the benefit of beneficiaries thereunder that remained unallocated on December 31, 1967 must be allocated or reallocated, as the case may be, before 1969,
(d)where paragraph 147(14)(a) applies, as of the date that the plan ceased so to comply, or any subsequent date,(e)where paragraph 147(14)(b) applies, as of the date that any provision of the plan was not so complied with, or any subsequent date,(f)where paragraph 147(14)(c) applies, as of any date following January 1, 1968,(g)where paragraph 147(14)(c.1) applies, as of the date on which the plan became a revocable plan, or any subsequent date,(h)where paragraph 147(14)(c.2) or 147(14)(c.3) applies, as of the date on which the plan did not so comply, or any subsequent date, but not before January 1, 1991,(i)where paragraph 147(14)(c.4) applies, as of the end of the year for which the requirements of subsection 147(5.1) in respect of the plan are not satisfied, or any subsequent date, and(j)where paragraph 147(14)(c.5) applies, as of any date after the date by which the information return was required to be filed,
(a)the revoked plan shall not be accepted for registration for the purposes of this Act or be deemed to have become registered as a deferred profit sharing plan at any time within a period of one year commencing on the date the plan became a revoked plan;(b)subsection 147(7) does not apply to exempt the trust governed by the plan from tax under this Part on the taxable income of the trust for a taxation year in which, at any time therein, the trust was governed by the revoked plan;(c)no deduction shall be made by an employer in computing the employer’s income for a taxation year in respect of an amount paid by the employer to a trustee under the plan at a time when it was a revoked plan;(d)there shall be included in computing the income of a taxpayer for a taxation year(i)all amounts received by the taxpayer in the year from a trustee under the revoked plan that, by virtue of subsection 147(10), would have been so included if the revoked plan had been a deferred profit sharing plan at the time the taxpayer received those amounts, and(ii)the amount or value of any funds or property appropriated to or for the benefit of the taxpayer in the year that, by virtue of subsection 147(13), would have been so included if the revoked plan had been a deferred profit sharing plan at the time of the appropriation of the funds or property; and(e)the revoked plan shall be deemed, for the purposes of this Act, not to be an employees profit sharing plan or a retirement compensation arrangement.
(i)all amounts received by the taxpayer in the year from a trustee under the revoked plan that, by virtue of subsection 147(10), would have been so included if the revoked plan had been a deferred profit sharing plan at the time the taxpayer received those amounts, and(ii)the amount or value of any funds or property appropriated to or for the benefit of the taxpayer in the year that, by virtue of subsection 147(13), would have been so included if the revoked plan had been a deferred profit sharing plan at the time of the appropriation of the funds or property; and
(a)disposes of property to a taxpayer for a consideration less than the fair market value of the property at the time of the transaction, or for no consideration, or(b)acquires property from a taxpayer for a consideration greater than the fair market value of the property at the time of the transaction,
(c)shall, for the purposes of subsections 147(10) and 147(15), be deemed to be an amount received by the taxpayer at the time of the disposal or acquisition, as the case may be, from a trustee under the plan as if the taxpayer were a beneficiary under the plan, and(d)is an amount taxable under section 201 for the calendar year in which the trust disposes of or acquires the property, as the case may be.
(a)is not part of a series of periodic payments;(b)is transferred on behalf of an individual(i)who is an employee or former employee of an employer who participated in the plan on the employee’s behalf, or(ii)who is a spouse or common-law partner, or former spouse or common-law partner, of an employee or former employee referred to in subparagraph (i) and who is entitled to the amount(A)as a consequence of the death of the employee or former employee, or(B)under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the employee or former employee and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership;in full or partial satisfaction of the individual’s entitlement to benefits under the plan;(c)would, if it were paid directly to the individual, be included under subsection 147(10) in computing the individual’s income for a taxation year; and(d)is transferred for the benefit of the individual directly to(i)a registered pension plan,(ii)a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)),(iii)a deferred profit sharing plan that can reasonably be expected to have at least 5 beneficiaries at all times throughout the calendar year in which the transfer is made,(iv)a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)), or(v)a licensed annuities provider to acquire an advanced life deferred annuity, if the individual is an employee or former employee of an employer who participated in the plan on the employee’s behalf.
(i)who is an employee or former employee of an employer who participated in the plan on the employee’s behalf, or(ii)who is a spouse or common-law partner, or former spouse or common-law partner, of an employee or former employee referred to in subparagraph (i) and who is entitled to the amount(A)as a consequence of the death of the employee or former employee, or(B)under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the employee or former employee and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership;
(A)as a consequence of the death of the employee or former employee, or(B)under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the employee or former employee and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership;
(i)a registered pension plan,(ii)a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)),(iii)a deferred profit sharing plan that can reasonably be expected to have at least 5 beneficiaries at all times throughout the calendar year in which the transfer is made,(iv)a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)), or(v)a licensed annuities provider to acquire an advanced life deferred annuity, if the individual is an employee or former employee of an employer who participated in the plan on the employee’s behalf.
(a)the amount shall not, by reason only of that transfer, be included by virtue of this section in computing the income of any taxpayer; and(b)no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer.
(a)the transfer is in accordance with subsection 147(19); or(b)the amount is deductible under paragraph 60(j) or 60(j.2) of this Act or paragraph 60(k) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, by the individual on whose behalf the transfer is made.
(a)the transfer of an amount from a deferred profit sharing plan in a calendar year on behalf of a beneficiary under the plan would, but for this subsection, be in accordance with subsection 147(19), and(b)the requirements of subsection 147(5.1) in respect of the plan are not satisfied for the year by reason that the beneficiary’s pension credits or pension adjustments do not comply with any of paragraphs 147(5.1)(a) to 147(5.1)(c),
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1471994, c. 21, s. 721997, c. 25, s. 431998, c. 19, s. 1722000, c. 12, s. 1422001, c. 17, s. 1422007, c. 29, s. 202013, c. 34, s. 3012021, c. 23, s. 35
147.1(1)In this section and sections 147.2 and 147.3,actuaryactuarymeans a Fellow of the Canadian Institute of Actuaries; (actuaire)administratoradministratorof a pension plan means the person or body of persons that has ultimate responsibility for the administration of the plan; (administrateur)average wageaverage wagefor a calendar year means the amount that is obtained by dividing by 12 the total of all amounts each of which is the wage measure for a month in the 12 month period ending on June 30 of the immediately preceding calendar year; (salaire moyen)compensationcompensationof an individual from an employer for a calendar year means the total of all amounts each of which is(a)an amount in respect of(i)the individual’s employment with the employer, or(ii)an office in respect of which the individual is remunerated by the employerthat is required (or that would be required but for paragraph 81(1)(a) as it applies with respect to theIndian Actor theForeign Missions and International Organizations Act) by section 5 or 6 to be included in computing the individual’s income for the year, except such portion of the amount as(iii)may reasonably be considered to relate to a period throughout which the individual was not resident in Canada, and(iv)is not attributable to the performance of the duties of the office or employment in Canada or is exempt from income tax in Canada by reason of a provision contained in a tax convention or agreement with another country that has the force of law in Canada,(b)a prescribed amount, or(c)an amount acceptable to the Minister in respect of remuneration received by the individual from any employer for a period in the year throughout which the individual was not resident in Canada, to the extent that the amount is not otherwise included in the total; (rétribution)defined benefit provisiondefined benefit provisionof a pension plan means terms of the plan under which benefits in respect of each member are determined in any way other than that described in the definitionmoney purchase provisionin this subsection; (disposition à prestations déterminées)former limitformer limitfor each calendar year after 2005 and before 2010 means the greater of(a)the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of(i)$18,000, and(ii)the quotient obtained when the average wage for the year is divided by the average wage for 2005, and(b )for 2006, $18,000, and for any other of those calendar years, the former limit for the preceding calendar year; (ancien plafond)membermemberof a pension plan means an individual who has a right, either immediate or in the future and either absolute or contingent, to receive benefits under the plan, other than an individual who has such a right only by reason of the participation of another individual in the plan; (participant)money purchase limitmoney purchase limitfor a calendar year means(a)for years before 1990, nil,(b)for 1990, $11,500,(c)for 1991 and 1992, $12,500,(d)for 1993, $13,500,(e)for 1994, $14,500,(f)for 1995, $15,500,(g)for years after 1995 and before 2003, $13,500,(h)for 2003, $15,500,(i)for 2004, $16,500,(j)for 2005, $18,000,(k)for 2006, the greater of $19,000 and the former limit for the year,(l)for 2007, the greater of $20,000 and the former limit for the year,(m)for 2008, the greater of $21,000 and the former limit for the year,(n)for 2009, the greater of $22,000 and the former limit for the year, and(o)for each year after 2009, the greater of(i)the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of(A)the money purchase limit for 2009, and(B)the quotient obtained when the average wage for the year is divided by the average wage for 2009, and(ii)the money purchase limit for the preceding year; (plafond des cotisations déterminées)money purchase provisionmoney purchase provisionof a pension plan means terms of the plan(a)which provide for a separate account to be maintained in respect of each member, to which are credited contributions made to the plan by, or in respect of, the member and any other amounts allocated to the member, and to which are charged payments made in respect of the member, and(b)under which the only benefits in respect of a member are benefits determined solely with reference to, and provided by, the amount in the member’s account; (disposition à cotisations déterminées)multi-employer planmulti-employer planin a calendar year has the meaning assigned by regulation; (régime interentreprises)participating employerparticipating employer, in relation to a pension plan, means an employer who has made, or is required to make, contributions to the plan in respect of the employer’s employees or former employees, or payments under the plan to the employer’s employees or former employees, and includes a prescribed employer; (employeur participant)past service eventpast service eventhas the meaning assigned by regulation; (fait lié aux services passés)single amountsingle amountmeans an amount that is not part of a series of periodic payments; (montant unique)specified multi-employer planspecified multi-employer planin a calendar year has the meaning assigned by regulation; (régime interentreprises déterminé)spousespouse[Repealed, 1994, c. 7, Sch