VIII, s. 812009, c. 2, s. 502014, c. 39, s. 492016, c. 7, s. 62
143.2(1)The definitions in this subsection apply in this section.expenditureexpendituremeans an outlay or expense or the cost or capital cost of a property. (dépense)limited partnerlimited partnerhas the meaning that would be assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection 96(2.5)) at that time and”. (commanditaire)limited-recourse amountlimited-recourse amountmeans the unpaid principal amount of any indebtedness for which recourse is limited, either immediately or in the future and either absolutely or contingently. (montant à recours limité)taxpayertaxpayerincludes a partnership. (contribuable)tax shelter investmenttax shelter investmentmeans(a)a property that is a tax shelter for the purpose of subsection 237.1(1); or(b)a taxpayer’s interest in a partnership where(i)an interest in the taxpayer(A)is a tax shelter investment, and(B)the taxpayer’s partnership interest would be a tax shelter investment if(I)this Act were read without reference to this paragraph and to the words “having regard to statements or representations made or proposed to be made in connection with the property” in the definitiontax shelterin subsection 237.1(1),(II)the references in that definition torepresentedwere read as references to “that can reasonably be expected”, and(III)the reference in that definition tois representedwere read as a reference to “can reasonably be expected”,(ii)another interest in the partnership is a tax shelter investment, or(iii)the taxpayer’s interest in the partnership entitles the taxpayer, directly or indirectly, to a share of the income or loss of a particular partnership where(A)another taxpayer holding a partnership interest is entitled, directly or indirectly, to a share of the income or loss of the particular partnership, and(B)that other taxpayer’s partnership interest is a tax shelter investment. (abri fiscal déterminé)Marginal note:At-risk adjustment(2)For the purpose of this section, an at-risk adjustment in respect of an expenditure of a particular taxpayer, other than the cost of a partnership interest to which subsection 96(2.2) applies, means any amount or benefit that the particular taxpayer, or another taxpayer not dealing at arm’s length with the particular taxpayer, is entitled, either immediately or in the future and either absolutely or contingently, to receive or to obtain, whether by way of reimbursement, compensation, revenue guarantee, proceeds of disposition, loan or any other form of indebtedness, or in any other form or manner whatever, granted or to be granted for the purpose of reducing the impact, in whole or in part, of any loss that the particular taxpayer may sustain in respect of the expenditure or, where the expenditure is the cost or capital cost of a property, any loss from the holding or disposition of the property.Marginal note:Amount or benefit not included(3)For the purpose of subsection 143.2(2), an at-risk adjustment in respect of a taxpayer’s expenditure does not include an amount or benefit(a)to the extent that it is included in determining the value of J in the definitioncumulative Canadian exploration expensein subsection 66.1(6), of M in the definitioncumulative Canadian development expensein subsection 66.2(5) or of I in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) in respect of the taxpayer; or(b)the entitlement to which arises(i)because of a contract of insurance with an insurance corporation dealing at arm’s length with the taxpayer (and, where the expenditure is the cost of an interest in a partnership, with each member of the partnership) under which the taxpayer is insured against any claim arising as a result of a liability incurred in the ordinary course of carrying on the business of the taxpayer or the partnership,(ii)as a consequence of the death of the taxpayer,(iii)in respect of an amount not included in the expenditure, determined without reference to subparagraph 143.2(6)(b)(ii), or(iv)because of an excluded obligation (as defined in subsection 6202.1(5) of theIncome Tax Regulations) in relation to a share issued to the taxpayer or, where the expenditure is the cost of an interest in a partnership, to the partnership.Marginal note:Amount or benefit(4)For the purposes of subsections 143.2(2) and (3), where the amount or benefit to which a taxpayer is entitled at any time is provided by way of an agreement or other arrangement under which the taxpayer has a right, either immediately or in the future and either absolutely or contingently (otherwise than as a consequence of the death of the taxpayer), to acquire property, for greater certainty the amount or benefit to which the taxpayer is entitled under the agreement or arrangement is considered to be not less than the fair market value of the property at that time.Marginal note:Amount or benefit(5)For the purposes of subsections 143.2(2) and (3), where the amount or benefit to which a taxpayer is entitled at any time is provided by way of a guarantee, security or similar indemnity or covenant in respect of any loan or other obligation of the taxpayer, for greater certainty the amount or benefit to which the taxpayer is entitled under the guarantee or indemnity at any particular time is considered to be not less than the total of the unpaid amount of the loan or obligation at that time and all other amounts outstanding in respect of the loan or obligation at that time.Marginal note:Amount of expenditure(6)Notwithstanding any other provision of this Act, the amount of any expenditure that is, or is the cost or capital cost of, a taxpayer’s tax shelter investment, and the amount of any expenditure of a taxpayer an interest in which is a tax shelter investment, shall be reduced to the amount, if any, by which(a)the amount of the taxpayer’s expenditure otherwise determinedexceeds(b)the total of(i)the limited-recourse amounts of(A)the taxpayer, and(B)all other taxpayers not dealing at arm’s length with the taxpayerthat can reasonably be considered to relate to the expenditure,(ii)the taxpayer’s at-risk adjustment in respect of the expenditure, and(iii)each limited-recourse amount and at-risk adjustment, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the expenditure.Marginal note:Limited-re­course debt in respect of a gift or monetary contribution(6.1)The limited-recourse debt in respect of a gift or monetary contribution of a taxpayer, at the time the gift or monetary contribution is made, is the total of(a)each limited-recourse amount at that time, of the taxpayer and of all other taxpayers not dealing at arm’s length with the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution,(b)each limited-recourse amount at that time, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution, and(c)each amount that is the unpaid amount at that time of any other indebtedness, of any taxpayer referred to in paragraph (a) or (b), that can reasonably be considered to relate to the gift or monetary contribution if there is a guarantee, security or similar indemnity or covenant in respect of that or any other indebtedness.Marginal note:Repayment of indebtedness(7)For the purpose of this section, the unpaid principal of an indebtedness is deemed to be a limited-recourse amount unless(a)bona fidearrangements, evidenced in writing, were made, at the time the indebtedness arose, for repayment by the debtor of the indebtedness and all interest on the indebtedness within a reasonable period not exceeding 10 years; and(b)interest is payable at least annually, at a rate equal to or greater than the lesser of(i)the prescribed rate of interest in effect at the time the indebtedness arose, and(ii)the prescribed rate of interest applicable from time to time during the term of the indebtedness,and is paid in respect of the indebtedness by the debtor no later than 60 days after the end of each taxation year of the debtor that ends in the period.Marginal note:Limited-recourse amount(8)For the purpose of this section, the unpaid principal of an indebtedness is deemed to be a limited-recourse amount of a taxpayer where the taxpayer is a partnership and recourse against any member of the partnership in respect of the indebtedness is limited, either immediately or in the future and either absolutely or contingently.Marginal note:Timing(9)Where at any time a taxpayer has paid an amount (in this subsection referred to as the “repaid amount”) on account of the principal amount of an indebtedness that was, before that time, the unpaid principal amount of a loan or any other form of indebtedness to which subsection 143.2(2) applies (in this subsection referred to as the “former amount or benefit”) relating to an expenditure of the taxpayer,(a)the former amount or benefit is considered to have been an amount or benefit under subsection 143.2(2) in respect of the taxpayer at all times before that time; and(b)the expenditure is, subject to subsection 143.2(6), deemed to have been made or incurred at that time to the extent of, and by the payment of, the repaid amount.Marginal note:Timing(10)Where at any time a taxpayer has paid an amount (in this subsection referred to as the “repaid amount”) on account of the principal amount of an indebtedness which was, before that time, an unpaid principal amount that was a limited-recourse amount (in this subsection referred to as the “former limited-recourse indebtedness”) relating to an expenditure of the taxpayer,(a)the former limited-recourse indebtedness is considered to have been a limited-recourse amount at all times before that time; and(b)the expenditure is, subject to subsection 143.2(6), deemed to have been made or incurred at that time to the extent of, and by the amount of, the repaid amount.Marginal note:Short-term debt(11)Where a taxpayer pays all of the principal of an indebtedness no later than 60 days after that indebtedness arose and the indebtedness would otherwise be considered to be a limited-recourse amount solely because of the application of subsection 143.2(7) or (8), that subsection does not apply to the indebtedness unless(a)any portion of the repayment is made with a limited-recourse amount; or(b)the repayment can reasonably be considered to be part of a series of loans or other indebtedness and repayments that ends more than 60 days after the indebtedness arose.Marginal note:Series of loans or repayments(12)For the purpose of paragraph 143.2(7)(a), a debtor is considered not to have made arrangements to repay an indebtedness within 10 years where the debtor’s arrangement to repay can reasonably be considered to be part of a series of loans or other indebtedness and repayments that ends more than 10 years after it begins.Marginal note:Information located outside Canada(13)For the purpose of this section, if it can reasonably be considered that information relating to indebtedness that relates to a taxpayer’s expenditure, gift or monetary contribution is available outside Canada and the Minister is not satisfied that the unpaid principal of the indebtedness is not a limited-recourse amount, the unpaid principal of the indebtedness relating to the taxpayer’s expenditure, gift or monetary contribution is deemed to be a limited-recourse amount relating to the expenditure, gift or monetary contribution unless(a)the information is provided to the Minister; or(b)the information is located in a country with which the Government of Canada has entered into a tax convention or agreement that has the force of law in Canada and includes a provision under which the Minister can obtain the information.Marginal note:Information located outside Canada(14)For the purpose of this section, where it can reasonably be considered that information relating to whether a taxpayer is not dealing at arm’s length with another taxpayer is available outside Canada and the Minister is not satisfied that the taxpayer is dealing at arm’s length with the other taxpayer, the taxpayer and the other taxpayer are deemed not to be dealing with each other at arm’s length unless(a)the information is provided to the Minister; or(b)the information is located in a country with which the Government of Canada has entered into a tax convention or agreement that has the force of law in Canada and includes a provision under which the Minister can obtain the information.Marginal note:Assessments(15)Notwithstanding subsections 152(4) to (5), such assessments, determinations and redeterminations may be made as are necessary to give effect to this section.
(a)a property that is a tax shelter for the purpose of subsection 237.1(1); or(b)a taxpayer’s interest in a partnership where(i)an interest in the taxpayer(A)is a tax shelter investment, and(B)the taxpayer’s partnership interest would be a tax shelter investment if(I)this Act were read without reference to this paragraph and to the words “having regard to statements or representations made or proposed to be made in connection with the property” in the definitiontax shelterin subsection 237.1(1),(II)the references in that definition torepresentedwere read as references to “that can reasonably be expected”, and(III)the reference in that definition tois representedwere read as a reference to “can reasonably be expected”,(ii)another interest in the partnership is a tax shelter investment, or(iii)the taxpayer’s interest in the partnership entitles the taxpayer, directly or indirectly, to a share of the income or loss of a particular partnership where(A)another taxpayer holding a partnership interest is entitled, directly or indirectly, to a share of the income or loss of the particular partnership, and(B)that other taxpayer’s partnership interest is a tax shelter investment. (abri fiscal déterminé)
(i)an interest in the taxpayer(A)is a tax shelter investment, and(B)the taxpayer’s partnership interest would be a tax shelter investment if(I)this Act were read without reference to this paragraph and to the words “having regard to statements or representations made or proposed to be made in connection with the property” in the definitiontax shelterin subsection 237.1(1),(II)the references in that definition torepresentedwere read as references to “that can reasonably be expected”, and(III)the reference in that definition tois representedwere read as a reference to “can reasonably be expected”,(ii)another interest in the partnership is a tax shelter investment, or(iii)the taxpayer’s interest in the partnership entitles the taxpayer, directly or indirectly, to a share of the income or loss of a particular partnership where(A)another taxpayer holding a partnership interest is entitled, directly or indirectly, to a share of the income or loss of the particular partnership, and(B)that other taxpayer’s partnership interest is a tax shelter investment. (abri fiscal déterminé)
(A)is a tax shelter investment, and(B)the taxpayer’s partnership interest would be a tax shelter investment if(I)this Act were read without reference to this paragraph and to the words “having regard to statements or representations made or proposed to be made in connection with the property” in the definitiontax shelterin subsection 237.1(1),(II)the references in that definition torepresentedwere read as references to “that can reasonably be expected”, and(III)the reference in that definition tois representedwere read as a reference to “can reasonably be expected”,
(I)this Act were read without reference to this paragraph and to the words “having regard to statements or representations made or proposed to be made in connection with the property” in the definitiontax shelterin subsection 237.1(1),(II)the references in that definition torepresentedwere read as references to “that can reasonably be expected”, and(III)the reference in that definition tois representedwere read as a reference to “can reasonably be expected”,
(A)another taxpayer holding a partnership interest is entitled, directly or indirectly, to a share of the income or loss of the particular partnership, and(B)that other taxpayer’s partnership interest is a tax shelter investment. (abri fiscal déterminé)
(a)to the extent that it is included in determining the value of J in the definitioncumulative Canadian exploration expensein subsection 66.1(6), of M in the definitioncumulative Canadian development expensein subsection 66.2(5) or of I in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) in respect of the taxpayer; or(b)the entitlement to which arises(i)because of a contract of insurance with an insurance corporation dealing at arm’s length with the taxpayer (and, where the expenditure is the cost of an interest in a partnership, with each member of the partnership) under which the taxpayer is insured against any claim arising as a result of a liability incurred in the ordinary course of carrying on the business of the taxpayer or the partnership,(ii)as a consequence of the death of the taxpayer,(iii)in respect of an amount not included in the expenditure, determined without reference to subparagraph 143.2(6)(b)(ii), or(iv)because of an excluded obligation (as defined in subsection 6202.1(5) of theIncome Tax Regulations) in relation to a share issued to the taxpayer or, where the expenditure is the cost of an interest in a partnership, to the partnership.
(i)because of a contract of insurance with an insurance corporation dealing at arm’s length with the taxpayer (and, where the expenditure is the cost of an interest in a partnership, with each member of the partnership) under which the taxpayer is insured against any claim arising as a result of a liability incurred in the ordinary course of carrying on the business of the taxpayer or the partnership,(ii)as a consequence of the death of the taxpayer,(iii)in respect of an amount not included in the expenditure, determined without reference to subparagraph 143.2(6)(b)(ii), or(iv)because of an excluded obligation (as defined in subsection 6202.1(5) of theIncome Tax Regulations) in relation to a share issued to the taxpayer or, where the expenditure is the cost of an interest in a partnership, to the partnership.
(a)the amount of the taxpayer’s expenditure otherwise determined
(b)the total of(i)the limited-recourse amounts of(A)the taxpayer, and(B)all other taxpayers not dealing at arm’s length with the taxpayerthat can reasonably be considered to relate to the expenditure,(ii)the taxpayer’s at-risk adjustment in respect of the expenditure, and(iii)each limited-recourse amount and at-risk adjustment, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the expenditure.
(i)the limited-recourse amounts of(A)the taxpayer, and(B)all other taxpayers not dealing at arm’s length with the taxpayerthat can reasonably be considered to relate to the expenditure,(ii)the taxpayer’s at-risk adjustment in respect of the expenditure, and(iii)each limited-recourse amount and at-risk adjustment, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the expenditure.
(A)the taxpayer, and(B)all other taxpayers not dealing at arm’s length with the taxpayer
(a)each limited-recourse amount at that time, of the taxpayer and of all other taxpayers not dealing at arm’s length with the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution,(b)each limited-recourse amount at that time, determined under this section when this section is applied to each other taxpayer who deals at arm’s length with and holds, directly or indirectly, an interest in the taxpayer, that can reasonably be considered to relate to the gift or monetary contribution, and(c)each amount that is the unpaid amount at that time of any other indebtedness, of any taxpayer referred to in paragraph (a) or (b), that can reasonably be considered to relate to the gift or monetary contribution if there is a guarantee, security or similar indemnity or covenant in respect of that or any other indebtedness.
(a)bona fidearrangements, evidenced in writing, were made, at the time the indebtedness arose, for repayment by the debtor of the indebtedness and all interest on the indebtedness within a reasonable period not exceeding 10 years; and(b)interest is payable at least annually, at a rate equal to or greater than the lesser of(i)the prescribed rate of interest in effect at the time the indebtedness arose, and(ii)the prescribed rate of interest applicable from time to time during the term of the indebtedness,and is paid in respect of the indebtedness by the debtor no later than 60 days after the end of each taxation year of the debtor that ends in the period.
(i)the prescribed rate of interest in effect at the time the indebtedness arose, and(ii)the prescribed rate of interest applicable from time to time during the term of the indebtedness,
(a)the former amount or benefit is considered to have been an amount or benefit under subsection 143.2(2) in respect of the taxpayer at all times before that time; and(b)the expenditure is, subject to subsection 143.2(6), deemed to have been made or incurred at that time to the extent of, and by the payment of, the repaid amount.
(a)the former limited-recourse indebtedness is considered to have been a limited-recourse amount at all times before that time; and(b)the expenditure is, subject to subsection 143.2(6), deemed to have been made or incurred at that time to the extent of, and by the amount of, the repaid amount.
(a)any portion of the repayment is made with a limited-recourse amount; or(b)the repayment can reasonably be considered to be part of a series of loans or other indebtedness and repayments that ends more than 60 days after the indebtedness arose.
(a)the information is provided to the Minister; or(b)the information is located in a country with which the Government of Canada has entered into a tax convention or agreement that has the force of law in Canada and includes a provision under which the Minister can obtain the information.
(a)the information is provided to the Minister; or(b)the information is located in a country with which the Government of Canada has entered into a tax convention or agreement that has the force of law in Canada and includes a provision under which the Minister can obtain the information.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1998, c. 19, s. 1682013, c. 34, s. 293
143.3(1)The following definitions apply in this section.expenditureexpenditureof a taxpayer means an expense, expenditure or outlay made or incurred by the taxpayer, or a cost or capital cost of property acquired by the taxpayer. (dépense)optionoptionmeans(a)a security that is issued or sold by a taxpayer under an agreement referred to in subsection 7(1); or(b)an option, warrant or similar right, issued or granted by a taxpayer, giving the holder the right to acquire an interest in the taxpayer or in another taxpayer with whom the taxpayer does not, at the time the option, warrant or similar right is issued or granted, deal at arm’s length. (option)taxpayertaxpayerincludes a partnership. (contribuable)Marginal note:Options — limitation(2)In computing a taxpayer’s income, taxable income or tax payable or an amount considered to have been paid on account of the taxpayer’s tax payable, an expenditure of the taxpayer is deemed not to include any portion of the expenditure that would — if this Act were read without reference to this subsection — be included in determining the expenditure because of the taxpayer having granted or issued an option on or after November 17, 2005.Marginal note:Corporate shares — limitation(3)In computing a corporation’s income, taxable income or tax payable or an amount considered to have been paid on account of the corporation’s tax payable, an expenditure of the corporation that would — if this Act were read without reference to this subsection — include an amount because of the corporation having issued a share of its capital stock at any particular time on or after November 17, 2005 is reduced by(a)if the issuance of the share is not a consequence of the exercise of an option, the amount, if any, by which the fair market value of the share at the particular time exceeds(i)if the transaction under which the share is issued is a transaction to which section 85, 85.1 or 138 applies, the amount determined under that section to be the cost to the issuing corporation of the property acquired in consideration for issuing the share, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the issuing corporation for issuing the share; and(b)if the issuance of the share is a consequence of the exercise of an option, the amount, if any, by which the fair market value of the share at the particular time exceeds the amount paid, pursuant to the terms of the option, by the holder to the issuing taxpayer for issuing the share.Marginal note:Non-corporate interests — limitation(4)In computing a taxpayer’s (other than a corporation’s) income, taxable income or tax payable or an amount considered to have been paid on account of the taxpayer’s tax payable, an expenditure of the taxpayer that would — if this Act were read without reference to this subsection — include an amount because of the taxpayer having issued an interest, or because of an interest being created, in itself at any particular time on or after November 17, 2005 is reduced by(a)if the issuance or creation of the interest is not a consequence of the exercise of an option, the amount, if any, by which the fair market value of the interest at the particular time exceeds(i)if the transaction under which the interest is issued is a transaction to which paragraph 70(6)(b) or 73(1.01)(c), subsection 97(2) or section 107.4 or 132.2 applies, the amount determined under that provision to be the cost to the taxpayer of the property acquired for the interest, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the taxpayer for the interest; and(b)if the issuance or creation of the interest is a consequence of the exercise of an option, the amount, if any, by which the fair market value of the interest at the particular time exceeds the amount paid, pursuant to the terms of the option, by the holder to the taxpayer for the interest.Marginal note:Clarification(5)For greater certainty,(a)subsection (2) does not apply to reduce an expenditure that is a commission, fee or other amount for services rendered by a person as a salesperson, agent or dealer in securities in the course of the issuance of an option;(b)subsections (3) and (4) do not apply to reduce an expenditure of a taxpayer to the extent that the expenditure does not include an amount determined to be an excess under those subsections;(c)this section does not apply to determine the cost or capital cost of property determined under subsection 70(6), section 73, 85 or 85.1, subsection 97(2) or section 107.4, 132.2 or 138;(d)this section does not apply to determine the amount of a taxpayer’s expenditure if the amount of the expenditure as determined under section 69 is less than the amount that would, if this subsection were read without reference to this paragraph, be the amount of the expenditure as determined under this section; and(e)this section does not apply to prohibit the deduction of an amount under paragraph 110(1)(e).
(a)a security that is issued or sold by a taxpayer under an agreement referred to in subsection 7(1); or(b)an option, warrant or similar right, issued or granted by a taxpayer, giving the holder the right to acquire an interest in the taxpayer or in another taxpayer with whom the taxpayer does not, at the time the option, warrant or similar right is issued or granted, deal at arm’s length. (option)
(a)if the issuance of the share is not a consequence of the exercise of an option, the amount, if any, by which the fair market value of the share at the particular time exceeds(i)if the transaction under which the share is issued is a transaction to which section 85, 85.1 or 138 applies, the amount determined under that section to be the cost to the issuing corporation of the property acquired in consideration for issuing the share, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the issuing corporation for issuing the share; and(b)if the issuance of the share is a consequence of the exercise of an option, the amount, if any, by which the fair market value of the share at the particular time exceeds the amount paid, pursuant to the terms of the option, by the holder to the issuing taxpayer for issuing the share.
(i)if the transaction under which the share is issued is a transaction to which section 85, 85.1 or 138 applies, the amount determined under that section to be the cost to the issuing corporation of the property acquired in consideration for issuing the share, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the issuing corporation for issuing the share; and
(a)if the issuance or creation of the interest is not a consequence of the exercise of an option, the amount, if any, by which the fair market value of the interest at the particular time exceeds(i)if the transaction under which the interest is issued is a transaction to which paragraph 70(6)(b) or 73(1.01)(c), subsection 97(2) or section 107.4 or 132.2 applies, the amount determined under that provision to be the cost to the taxpayer of the property acquired for the interest, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the taxpayer for the interest; and(b)if the issuance or creation of the interest is a consequence of the exercise of an option, the amount, if any, by which the fair market value of the interest at the particular time exceeds the amount paid, pursuant to the terms of the option, by the holder to the taxpayer for the interest.
(i)if the transaction under which the interest is issued is a transaction to which paragraph 70(6)(b) or 73(1.01)(c), subsection 97(2) or section 107.4 or 132.2 applies, the amount determined under that provision to be the cost to the taxpayer of the property acquired for the interest, or(ii)in any other case, the amount of the consideration that is the fair market value of the property transferred or issued to, or the services provided to, the taxpayer for the interest; and
(a)subsection (2) does not apply to reduce an expenditure that is a commission, fee or other amount for services rendered by a person as a salesperson, agent or dealer in securities in the course of the issuance of an option;(b)subsections (3) and (4) do not apply to reduce an expenditure of a taxpayer to the extent that the expenditure does not include an amount determined to be an excess under those subsections;(c)this section does not apply to determine the cost or capital cost of property determined under subsection 70(6), section 73, 85 or 85.1, subsection 97(2) or section 107.4, 132.2 or 138;(d)this section does not apply to determine the amount of a taxpayer’s expenditure if the amount of the expenditure as determined under section 69 is less than the amount that would, if this subsection were read without reference to this paragraph, be the amount of the expenditure as determined under this section; and(e)this section does not apply to prohibit the deduction of an amount under paragraph 110(1)(e).
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2013, c. 34, s. 2942021, c. 23, s. 29
143.4(1)The following definitions apply in this section.contingent amountcontingent amount, of a taxpayer at any time (other than a time at which the taxpayer is a bankrupt), includes an amount to the extent that the taxpayer, or another taxpayer that does not deal at arm’s length with the taxpayer, has a right to reduce the amount at that time. (montant éventuel)expenditureexpenditure, of a taxpayer, means an expense, expenditure or outlay made or incurred by the taxpayer, or a cost or capital cost of property acquired by the taxpayer. (dépense)right to reduceright to reducemeans a right to reduce or eliminate an amount in respect of an expenditure at any time, including, for greater certainty, a right to reduce that is contingent upon the occurrence of an event, or in any other way contingent, if it is reasonable to conclude, having regard to all the circumstances, that the right will become exercisable. (droit de réduire)taxpayertaxpayerincludes a partnership. (contribuable)Marginal note:Limitation of amount of expenditure(2)For the purposes of this Act, if in a taxation year of a taxpayer an expenditure of the taxpayer occurs, the amount of the expenditure at any time is the lesser of(a)the amount of the expenditure at the time calculated under this Act without reference to this section, and(b)the least amount of the expenditure calculated by reducing the amount of the expenditure determined under paragraph (a) by the amount that is the amount, if any, by which(i)the total of all amounts each of which is a contingent amount of the taxpayer in the year in respect of the expenditureexceeds(ii)the total of all amounts each of which is(A)an amount paid by the taxpayer to obtain a right to reduce an amount in respect of the expenditure, or(B)a limited-recourse amount for the purposes of paragraph 143.2(6)(b) that reduces the expenditure under subsection 143.2(6) to the extent that the amount is also a contingent amount described in subparagraph (i) in respect of the expenditure.Marginal note:Payment of contingent amount(3)For the purposes of this Act, if in a particular taxation year, a taxpayer pays all or a portion of a contingent amount referred to in paragraph (2)(b) that reduces the amount of the taxpayer’s expenditure referred to in paragraph (2)(a), the portion of the contingent amount paid by the taxpayer in the particular year for the purpose of earning income, and to that extent only, is deemed(a)to have been incurred by the taxpayer in the particular year;(b)to have been incurred for the same purpose and to have the same character as the expenditure so reduced; and(c)to have become payable by the taxpayer in respect of the particular year.Marginal note:Subsequent years(4)Subject to subsection (6), if at any time in a taxation year that is after a taxation year in which an expenditure of the taxpayer occurred, the taxpayer, or another taxpayer not dealing at arm’s length with the taxpayer, has a right to reduce an amount in respect of the expenditure (in this subsection and subsection (5) referred to as the “prior expenditure”) that would, if the taxpayer or the other taxpayer had had the right to reduce in a particular taxation year that ended before the time, have resulted in subsection (2) applying in the particular taxation year to reduce or eliminate the amount of the prior expenditure, the taxpayer’s subsequent contingent amount in respect of the prior expenditure, as determined under subsection (5), is deemed, to the extent subsection (2) and this subsection have not previously applied in respect of the expenditure,(a)to be an amount received by the taxpayer at the time in the course of earning income from a business or property from a person described in subparagraph 12(1)(x)(i); and(b)to be an amount referred to in subparagraph 12(1)(x)(iv).Marginal note:Subsequent contingent amount(5)For the purposes of subsection (4), a taxpayer’s subsequent contingent amount in respect of a prior expenditure of the taxpayer is the amount, if any, by which(a)the maximum amount by which the amount (in this subsection referred to as the “particular amount”) in respect of the prior expenditure may be reduced pursuant to a right to reduce the particular amountexceeds(b)the amount, if any, paid to obtain the right to reduce the particular amount.Marginal note:Anti-avoidance(6)If a taxpayer, or another taxpayer that does not deal at arm’s length with the taxpayer, has a right to reduce an amount in respect of an expenditure of the taxpayer in a taxation year that is after the taxation year in which the expenditure otherwise occurred, determined without reference to subsection (3), the taxpayer is deemed to have the right to reduce in the taxation year in which that expenditure otherwise occurred if it is reasonable to conclude having regard to all the circumstances that one of the purposes for having the right to reduce after the end of the year in which the expenditure otherwise occurred was to avoid the application of subsection (2) to the amount of the expenditure.Marginal note:Assessments(7)Notwithstanding subsections 152(4) to (5), such assessments, determinations and redeterminations may be made as are necessary to give effect to this section.
(a)the amount of the expenditure at the time calculated under this Act without reference to this section, and(b)the least amount of the expenditure calculated by reducing the amount of the expenditure determined under paragraph (a) by the amount that is the amount, if any, by which(i)the total of all amounts each of which is a contingent amount of the taxpayer in the year in respect of the expenditureexceeds(ii)the total of all amounts each of which is(A)an amount paid by the taxpayer to obtain a right to reduce an amount in respect of the expenditure, or(B)a limited-recourse amount for the purposes of paragraph 143.2(6)(b) that reduces the expenditure under subsection 143.2(6) to the extent that the amount is also a contingent amount described in subparagraph (i) in respect of the expenditure.
(i)the total of all amounts each of which is a contingent amount of the taxpayer in the year in respect of the expenditure
(ii)the total of all amounts each of which is(A)an amount paid by the taxpayer to obtain a right to reduce an amount in respect of the expenditure, or(B)a limited-recourse amount for the purposes of paragraph 143.2(6)(b) that reduces the expenditure under subsection 143.2(6) to the extent that the amount is also a contingent amount described in subparagraph (i) in respect of the expenditure.
(A)an amount paid by the taxpayer to obtain a right to reduce an amount in respect of the expenditure, or(B)a limited-recourse amount for the purposes of paragraph 143.2(6)(b) that reduces the expenditure under subsection 143.2(6) to the extent that the amount is also a contingent amount described in subparagraph (i) in respect of the expenditure.
(a)to have been incurred by the taxpayer in the particular year;(b)to have been incurred for the same purpose and to have the same character as the expenditure so reduced; and(c)to have become payable by the taxpayer in respect of the particular year.
(a)to be an amount received by the taxpayer at the time in the course of earning income from a business or property from a person described in subparagraph 12(1)(x)(i); and(b)to be an amount referred to in subparagraph 12(1)(x)(iv).
(a)the maximum amount by which the amount (in this subsection referred to as the “particular amount”) in respect of the prior expenditure may be reduced pursuant to a right to reduce the particular amount
(b)the amount, if any, paid to obtain the right to reduce the particular amount.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2013, c. 34, s. 295
144(1)The definitions in this subsection apply in this section.employees profit sharing planemployees profit sharing planat a particular time means an arrangement(a)under which payments computed by reference to(i)an employer’s profits from the employer’s business,(ii)the profits from the business of a corporation with which the employer does not deal at arm’s length, or(iii)any combination of the amounts described in subparagraphs 144(1) employees profit sharing plan (a)(i) and 144(1) employees profit sharing plan (a)(ii)are required to be made by the employer to a trustee under the arrangement for the benefit of employees of the employer or of a corporation with which the employer does not deal at arm’s length; and(b)in respect of which the trustee has, since the later of the beginning of the arrangement and the end of 1949, allocated, either contingently or absolutely, to those employees(i)in each year that ended at or before the particular time, all amounts received in the year by the trustee from the employer or from a corporation with which the employer does not deal at arm’s length,(ii)in each year that ended at or before the particular time, all profits for the year from the property of the trust (determined without regard to any capital gain made by the trust or capital loss sustained by it at any time after 1955),(iii)in each year that ended after 1971 and at or before the particular time, all capital gains and capital losses of the trust for the year,(iv)in each year that ended after 1971, before 1993 and at or before the particular time, 100/15 of the total of all amounts each of which is deemed by subsection 144(9) to be paid on account of tax under this Part in respect of an employee because the employee ceased to be a beneficiary under the plan in the year, and(v)in each year that ended after 1991 and at or before the particular time, the total of all amounts each of which is an amount that may be deducted under subsection 144(9) in computing the employee’s income because the employee ceased to be a beneficiary under the plan in the year. (régime de participation des employés aux bénéfices)unused portion of a beneficiary’s exempt capital gains balanceunused portion of a beneficiary’s exempt capital gains balancein respect of a trust governed by an employees profit sharing plan, at any particular time in a taxation year of the beneficiary, means(a)where the year ends before 2005, the amount, if any, by which the beneficiary’s exempt capital gains balance (in this paragraph having the same meaning as in subsection 39.1(1)) in respect of the trust for the year exceeds the total of all amounts each of which is an amount by which a capital gain is reduced under section 39.1 in the year because of the beneficiary’s exempt capital gains balance in respect of the trust; or(b)where the year ends after 2004, the amount, if any, by which(i)the amount, if any, that would, if the definitionexempt capital gains balancein subsection 39.1(1) were read without reference to “that ends before 2005”, be the beneficiary’s exempt capital gains balance in respect of the trust for the yearexceeds(ii)where there has been a disposition of an interest or a part of an interest of the beneficiary in the trust after the beneficiary’s 2004 taxation year (other than a disposition that is a part of a transaction described in paragraph 144(7.1)(c) in which property is received in satisfaction of all or a portion of the beneficiary’s interests in the trust), the total of all amounts each of which is an amount by which the adjusted cost base of an interest or a part of an interest disposed of by the beneficiary (other than an interest or a part of an interest that is all or a portion of the beneficiary’s interests referred to in paragraph 144(7.1)(c)) was increased because of paragraph 53(1)(p), and(iii)in any other case, nil. (fraction inutilisée du solde des gains en capital exonérés)Marginal note:No tax while trust governed by plan(2)No tax is payable under this Part by a trust on the taxable income of the trust for a taxation year throughout which the trust is governed by an employees profit sharing plan.Marginal note:Allocation contingent or absolute taxable(3)There shall be included in computing the income for a taxation year of an employee who is a beneficiary under an employees profit sharing plan each amount that is allocated to the employee contingently or absolutely by the trustee under the plan at any time in the year otherwise than in respect of(a)a payment made by the employee to the trustee;(b)a capital gain made by the trust before 1972;(c)a capital gain of the trust for a taxation year ending after 1971;(d)a gain made by the trust after 1971 from the disposition of a capital property except to the extent that the gain is a capital gain described in paragraph 144(3)(c); or(e)a dividend received by the trust from a taxable Canadian corporation.(f)[Repealed, 1994, c. 21, s. 68(2)]Marginal note:Allocated capital gains and losses(4)Each capital gain and capital loss of a trust governed by an employees profit sharing plan from the disposition of any property shall, to the extent that it is allocated by the trust to an employee who is a beneficiary under the plan, be deemed to be a capital gain or capital loss, as the case may be, of the employee from the disposition of that property for the taxation year of the employee in which the allocation was made and, for the purposes of section 110.6, the property shall be deemed to have been disposed of by the employee on the day on which it was disposed of by the trust.Marginal note:Idem(4.1)Notwithstanding subsection 26(6) of theIncome Tax Application Rules, where at any time before 1976 the trustee of a trust governed by an employees profit sharing plan so elects in prescribed manner, the trust shall be deemed(a)to have, on December 31, 1971, disposed of each property owned by the trust on that day for proceeds of disposition equal to the fair market value of the property on that day, and(b)to have, on January 1, 1972, reacquired each property described in paragraph 144(4.1)(a) for the amount referred to in that paragraph,if the trustee under the plan has, before 1976, allocated the total of all capital gains and capital losses resulting from the deemed dispositions among the employees or other beneficiaries under the plan to the extent that the trustee under the plan has not previously so allocated them.Marginal note:Idem(4.2)Where a trust governed by an employees profit sharing plan(a)was governed by an employees profit sharing plan on December 31, 1971, and the trustee of the trust has made an election under subsection 144(4.1), or(b)was not governed by an employees profit sharing plan on December 31, 1971,the trustee of the trust may, in any taxation year after 1973, elect in prescribed manner and prescribed form to treat any capital property of the trust as having been disposed of, in which event the property shall be deemed to have been disposed of on any day designated by the trustee for proceeds of disposition equal to(c)the fair market value of the property on that day,(d)the adjusted cost base to the trust of the property on that day, or(e)an amount that is neither greater than the greater of the amounts determined under paragraphs 144(4.2)(c) and 144(4.2)(d) nor less than the lesser of the amounts determined under those paragraphswhichever is designated by the trustee and to have been reacquired by the trust immediately thereafter at a cost equal to those proceeds.Marginal note:Employer’s contribution to trust deductible(5)An amount paid by an employer to a trustee under an employees profit sharing plan during a taxation year or within 120 days thereafter may be deducted in computing the employer’s income for the taxation year to the extent that it was not deductible in computing income for a previous taxation year.Marginal note:Beneficiary’s receipts deductible(6)An amount received in a taxation year by a beneficiary from a trustee under an employees profit sharing plan shall not be included in computing the beneficiary’s income for the year.Marginal note:Beneficiary’s receipts that are not deductible(7)Notwithstanding subsection 144(6), such portion of an amount received in a taxation year by a beneficiary from the trustee under an employees profit sharing plan as cannot be established to be attributable to(a)payments made by the employee to the trustee,(b)amounts required to be included in computing the income of the employee for that or a previous taxation year,(c)a capital gain made by the trust before 1972,(d)a capital gain made by the trust for a taxation year ending after 1971, to the extent allocated by the trust to the beneficiary,(e)a gain made by the trust after 1971 from the disposition of a capital property, except to the extent that the gain is a capital gain made by the trust for a taxation year ending after 1971,(f)the portion, if any, of the increase in the value of property transferred to the beneficiary by the trustee that would have been considered to be a capital gain made by the trust in 1971 if the trustee had sold the property on December 31, 1971 for its fair market value at that time, or(g)a dividend received by the trust from a taxable Canadian corporation other than a dividend described in subsection 83(1), to the extent allocated by the trust to the beneficiary,shall be included in computing the beneficiary’s income for the year in which the amount was received, except that in determining the amount of any payments or other things described in any paragraph of this subsection, the amount thereof otherwise determined shall be reduced by such portion of the total of all capital losses of the trust for taxation years ending after 1971 as has been allocated by the trust to the beneficiary and has not been applied to reduce the amount of any payments or other things described in any other paragraph of this subsection.Marginal note:Where property other than money received by beneficiary(7.1)Where, at any particular time in a taxation year of a trust governed by an employees profit sharing plan, an amount was received by a beneficiary from the trustee under the plan and the amount so received was property other than money, the following rules apply in respect of each such property so received by the beneficiary at the particular time:(a)the amount that was the cost amount to the trust of the property immediately before the particular time shall be deemed to be the trust’s proceeds of disposition of the property;(b)that proportion of(i)such portion of the amount received by the beneficiary as can be established to be attributable to the payments or other things described in paragraphs 144(7)(a) to 144(7)(g) (on the assumption that the amount of any payments or other things described in any such paragraph is the amount thereof determined as provided in subsection 144(7))that(ii)the cost amount to the trust of the property immediately before the particular timeis of(iii)the cost amounts to the trust of all properties, other than money, so received by the beneficiary at the particular time,is subject to paragraph 144(7.1)(c), deemed to be(iv)the cost to the beneficiary of the property, and(v)for the purposes of subsection 144(7) but not for the purposes of this subsection, the amount so received by the beneficiary by virtue of the receipt by the beneficiary of the property; and(c)where a particular property received is all or a portion of property received in satisfaction of all or a portion of the beneficiary’s interests in the trust and the beneficiary files with the Minister on or before the beneficiary’s filing-due date for the taxation year that includes the particular time an election in respect of the particular property in prescribed form, there shall be included in the cost to the beneficiary of the particular property determined under paragraph 144(7.1)(b) the least of(i)the amount, if any, by which the unused portion of the beneficiary’s exempt capital gains balance in respect of the trust at the particular time exceeds the total of all amounts each of which is an amount included because of this paragraph in the cost to the beneficiary of another property received by the beneficiary at or before the particular time in the year,(ii)the amount, if any, by which the fair market value of the particular property at the particular time exceeds the amount deemed by subparagraph 144(7.1)(b)(iv) to be the cost to the beneficiary of the particular property, and(iii)the amount designated in the election in respect of the particular property.Marginal note:Allocation of credit for dividends(8)Where there has been included in computing the income of a trust for a taxation year during which the trust was governed by an employees profit sharing plan taxable dividends from taxable Canadian corporations and there has been allocated by the trustee under the plan for the purposes of this subsection an amount for the year to one or more of the employees who are beneficiaries under the plan, which amount or the total of which amounts does not exceed the amount of the taxable dividends so included, each of the employees who are beneficiaries under the plan shall be deemed to have received a taxable dividend from a taxable Canadian corporation equal to the lesser of(a)the amount, if any, that would be included in computing the employee’s income for the year by virtue of this section, if this section were read without reference to paragraph 144(3)(e), and(b)the amount, if any, so allocated for the purposes of this subsection to the employee.Marginal note:Foreign tax deduction(8.1)For the purpose of subsection 126(1), the following rules apply:(a)such portion of the income for a taxation year of a trust governed by an employees profit sharing plan from sources (other than businesses carried on by it) in a foreign country as(i)may reasonably be considered (having regard to all the circumstances including the terms and conditions of the plan) to be part of(A)the income that, by virtue of subsection 144(3), was included in computing the income for a taxation year of a particular employee who was a beneficiary under the plan, or(B)the amount, if any, by which(I)the total of amounts each of which is a capital gain of the trust that, by virtue of subsection 144(4), was deemed to be a capital gain of the particular employee for a taxation yearexceeds(II)the total of amounts each of which is a capital loss of the trust that, by virtue of subsection 144(4), was deemed to be a capital loss of the particular employee for the taxation year, and(ii)was not designated by the trust in respect of any other employee who was a beneficiary under the plan,shall if so designated by the trust in respect of the particular employee in its return of income for the year under this Part, be deemed to be income of the particular employee for the taxation year from sources in that country; and(b)an employee who is a beneficiary under an employees profit sharing plan shall be deemed to have paid as non-business-income tax for a taxation year, on the income that the employee is deemed by paragraph 144(8.1)(a) to have for the year from sources in a foreign country, to the government of that country an amount equal to that proportion of the non-business-income tax paid by the trust governed by the plan for the year to the government of that country, or to the government of a state, province or other political subdivision of that country (except such portion of that tax as was deductible under subsection 20(11) in computing its income for the year) that(i)the income that the employee is deemed by paragraph 144(8.1)(a) to have for the year from sources in that countryis of(ii)the income of the trust for the year from sources (other than businesses carried on by it) in that country.(8.2)[Repealed, 1994, c. 21, s. 68(3)]Marginal note:Deduction for forfeited amounts(9)Where a person ceases at any time in a taxation year to be a beneficiary under an employees profit sharing plan and does not become a beneficiary under the plan after that time and in the year, there may be deducted in computing the person’s income for the year the amount determined by the formulaA - B - C/4 - DwhereAis the total of all amounts each of which is an amount included in computing the person’s income for the year or a preceding taxation year (other than an amount received before that time under the plan or an amount under the plan that the person is entitled at that time to receive) because of an allocation (other than an allocation to which subsection 144(4) applies) to the person made contingently under the plan before that time;Bis the portion, if any, of the value of A that is included in the value of A because of paragraph 82(1)(b);Cis the total of all taxable dividends deemed to be received by the person because of allocations under subsection 144(8) in respect of the plan; andDis the total of all amounts deductible under this subsection in computing the person’s income for a preceding taxation year because the person ceased to be a beneficiary under the plan in a preceding taxation year.Marginal note:Payments out of profits(10)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, if the employer so elects in prescribed manner, be deemed, for the purpose of subsection 144(1), to be an arrangement under which payments computed by reference to the employer’s profits are required.Marginal note:Taxation year of trust(11)Where an employees profit sharing plan is accepted for registration by the Minister as a deferred profit sharing plan, the taxation year of the trust governed by the employees profit sharing plan shall be deemed to have ended immediately before the plan is deemed to have become registered as a deferred profit sharing plan pursuant to subsection 147(5).
(a)under which payments computed by reference to(i)an employer’s profits from the employer’s business,(ii)the profits from the business of a corporation with which the employer does not deal at arm’s length, or(iii)any combination of the amounts described in subparagraphs 144(1) employees profit sharing plan (a)(i) and 144(1) employees profit sharing plan (a)(ii)are required to be made by the employer to a trustee under the arrangement for the benefit of employees of the employer or of a corporation with which the employer does not deal at arm’s length; and(b)in respect of which the trustee has, since the later of the beginning of the arrangement and the end of 1949, allocated, either contingently or absolutely, to those employees(i)in each year that ended at or before the particular time, all amounts received in the year by the trustee from the employer or from a corporation with which the employer does not deal at arm’s length,(ii)in each year that ended at or before the particular time, all profits for the year from the property of the trust (determined without regard to any capital gain made by the trust or capital loss sustained by it at any time after 1955),(iii)in each year that ended after 1971 and at or before the particular time, all capital gains and capital losses of the trust for the year,(iv)in each year that ended after 1971, before 1993 and at or before the particular time, 100/15 of the total of all amounts each of which is deemed by subsection 144(9) to be paid on account of tax under this Part in respect of an employee because the employee ceased to be a beneficiary under the plan in the year, and(v)in each year that ended after 1991 and at or before the particular time, the total of all amounts each of which is an amount that may be deducted under subsection 144(9) in computing the employee’s income because the employee ceased to be a beneficiary under the plan in the year. (régime de participation des employés aux bénéfices)
(i)an employer’s profits from the employer’s business,(ii)the profits from the business of a corporation with which the employer does not deal at arm’s length, or(iii)any combination of the amounts described in subparagraphs 144(1) employees profit sharing plan (a)(i) and 144(1) employees profit sharing plan (a)(ii)
(i)in each year that ended at or before the particular time, all amounts received in the year by the trustee from the employer or from a corporation with which the employer does not deal at arm’s length,(ii)in each year that ended at or before the particular time, all profits for the year from the property of the trust (determined without regard to any capital gain made by the trust or capital loss sustained by it at any time after 1955),(iii)in each year that ended after 1971 and at or before the particular time, all capital gains and capital losses of the trust for the year,(iv)in each year that ended after 1971, before 1993 and at or before the particular time, 100/15 of the total of all amounts each of which is deemed by subsection 144(9) to be paid on account of tax under this Part in respect of an employee because the employee ceased to be a beneficiary under the plan in the year, and(v)in each year that ended after 1991 and at or before the particular time, the total of all amounts each of which is an amount that may be deducted under subsection 144(9) in computing the employee’s income because the employee ceased to be a beneficiary under the plan in the year. (régime de participation des employés aux bénéfices)
(a)where the year ends before 2005, the amount, if any, by which the beneficiary’s exempt capital gains balance (in this paragraph having the same meaning as in subsection 39.1(1)) in respect of the trust for the year exceeds the total of all amounts each of which is an amount by which a capital gain is reduced under section 39.1 in the year because of the beneficiary’s exempt capital gains balance in respect of the trust; or(b)where the year ends after 2004, the amount, if any, by which(i)the amount, if any, that would, if the definitionexempt capital gains balancein subsection 39.1(1) were read without reference to “that ends before 2005”, be the beneficiary’s exempt capital gains balance in respect of the trust for the yearexceeds(ii)where there has been a disposition of an interest or a part of an interest of the beneficiary in the trust after the beneficiary’s 2004 taxation year (other than a disposition that is a part of a transaction described in paragraph 144(7.1)(c) in which property is received in satisfaction of all or a portion of the beneficiary’s interests in the trust), the total of all amounts each of which is an amount by which the adjusted cost base of an interest or a part of an interest disposed of by the beneficiary (other than an interest or a part of an interest that is all or a portion of the beneficiary’s interests referred to in paragraph 144(7.1)(c)) was increased because of paragraph 53(1)(p), and(iii)in any other case, nil. (fraction inutilisée du solde des gains en capital exonérés)
(i)the amount, if any, that would, if the definitionexempt capital gains balancein subsection 39.1(1) were read without reference to “that ends before 2005”, be the beneficiary’s exempt capital gains balance in respect of the trust for the year
(ii)where there has been a disposition of an interest or a part of an interest of the beneficiary in the trust after the beneficiary’s 2004 taxation year (other than a disposition that is a part of a transaction described in paragraph 144(7.1)(c) in which property is received in satisfaction of all or a portion of the beneficiary’s interests in the trust), the total of all amounts each of which is an amount by which the adjusted cost base of an interest or a part of an interest disposed of by the beneficiary (other than an interest or a part of an interest that is all or a portion of the beneficiary’s interests referred to in paragraph 144(7.1)(c)) was increased because of paragraph 53(1)(p), and(iii)in any other case, nil. (fraction inutilisée du solde des gains en capital exonérés)
(a)a payment made by the employee to the trustee;(b)a capital gain made by the trust before 1972;(c)a capital gain of the trust for a taxation year ending after 1971;(d)a gain made by the trust after 1971 from the disposition of a capital property except to the extent that the gain is a capital gain described in paragraph 144(3)(c); or(e)a dividend received by the trust from a taxable Canadian corporation.(f)[Repealed, 1994, c. 21, s. 68(2)]
(a)to have, on December 31, 1971, disposed of each property owned by the trust on that day for proceeds of disposition equal to the fair market value of the property on that day, and(b)to have, on January 1, 1972, reacquired each property described in paragraph 144(4.1)(a) for the amount referred to in that paragraph,
(a)was governed by an employees profit sharing plan on December 31, 1971, and the trustee of the trust has made an election under subsection 144(4.1), or(b)was not governed by an employees profit sharing plan on December 31, 1971,
(c)the fair market value of the property on that day,(d)the adjusted cost base to the trust of the property on that day, or(e)an amount that is neither greater than the greater of the amounts determined under paragraphs 144(4.2)(c) and 144(4.2)(d) nor less than the lesser of the amounts determined under those paragraphs
(a)payments made by the employee to the trustee,(b)amounts required to be included in computing the income of the employee for that or a previous taxation year,(c)a capital gain made by the trust before 1972,(d)a capital gain made by the trust for a taxation year ending after 1971, to the extent allocated by the trust to the beneficiary,(e)a gain made by the trust after 1971 from the disposition of a capital property, except to the extent that the gain is a capital gain made by the trust for a taxation year ending after 1971,(f)the portion, if any, of the increase in the value of property transferred to the beneficiary by the trustee that would have been considered to be a capital gain made by the trust in 1971 if the trustee had sold the property on December 31, 1971 for its fair market value at that time, or(g)a dividend received by the trust from a taxable Canadian corporation other than a dividend described in subsection 83(1), to the extent allocated by the trust to the beneficiary,
(a)the amount that was the cost amount to the trust of the property immediately before the particular time shall be deemed to be the trust’s proceeds of disposition of the property;(b)that proportion of(i)such portion of the amount received by the beneficiary as can be established to be attributable to the payments or other things described in paragraphs 144(7)(a) to 144(7)(g) (on the assumption that the amount of any payments or other things described in any such paragraph is the amount thereof determined as provided in subsection 144(7))that(ii)the cost amount to the trust of the property immediately before the particular timeis of(iii)the cost amounts to the trust of all properties, other than money, so received by the beneficiary at the particular time,is subject to paragraph 144(7.1)(c), deemed to be(iv)the cost to the beneficiary of the property, and(v)for the purposes of subsection 144(7) but not for the purposes of this subsection, the amount so received by the beneficiary by virtue of the receipt by the beneficiary of the property; and(c)where a particular property received is all or a portion of property received in satisfaction of all or a portion of the beneficiary’s interests in the trust and the beneficiary files with the Minister on or before the beneficiary’s filing-due date for the taxation year that includes the particular time an election in respect of the particular property in prescribed form, there shall be included in the cost to the beneficiary of the particular property determined under paragraph 144(7.1)(b) the least of(i)the amount, if any, by which the unused portion of the beneficiary’s exempt capital gains balance in respect of the trust at the particular time exceeds the total of all amounts each of which is an amount included because of this paragraph in the cost to the beneficiary of another property received by the beneficiary at or before the particular time in the year,(ii)the amount, if any, by which the fair market value of the particular property at the particular time exceeds the amount deemed by subparagraph 144(7.1)(b)(iv) to be the cost to the beneficiary of the particular property, and(iii)the amount designated in the election in respect of the particular property.
(i)such portion of the amount received by the beneficiary as can be established to be attributable to the payments or other things described in paragraphs 144(7)(a) to 144(7)(g) (on the assumption that the amount of any payments or other things described in any such paragraph is the amount thereof determined as provided in subsection 144(7))
(ii)the cost amount to the trust of the property immediately before the particular time
(iii)the cost amounts to the trust of all properties, other than money, so received by the beneficiary at the particular time,
(iv)the cost to the beneficiary of the property, and(v)for the purposes of subsection 144(7) but not for the purposes of this subsection, the amount so received by the beneficiary by virtue of the receipt by the beneficiary of the property; and
(i)the amount, if any, by which the unused portion of the beneficiary’s exempt capital gains balance in respect of the trust at the particular time exceeds the total of all amounts each of which is an amount included because of this paragraph in the cost to the beneficiary of another property received by the beneficiary at or before the particular time in the year,(ii)the amount, if any, by which the fair market value of the particular property at the particular time exceeds the amount deemed by subparagraph 144(7.1)(b)(iv) to be the cost to the beneficiary of the particular property, and(iii)the amount designated in the election in respect of the particular property.
(a)the amount, if any, that would be included in computing the employee’s income for the year by virtue of this section, if this section were read without reference to paragraph 144(3)(e), and(b)the amount, if any, so allocated for the purposes of this subsection to the employee.
(a)such portion of the income for a taxation year of a trust governed by an employees profit sharing plan from sources (other than businesses carried on by it) in a foreign country as(i)may reasonably be considered (having regard to all the circumstances including the terms and conditions of the plan) to be part of(A)the income that, by virtue of subsection 144(3), was included in computing the income for a taxation year of a particular employee who was a beneficiary under the plan, or(B)the amount, if any, by which(I)the total of amounts each of which is a capital gain of the trust that, by virtue of subsection 144(4), was deemed to be a capital gain of the particular employee for a taxation yearexceeds(II)the total of amounts each of which is a capital loss of the trust that, by virtue of subsection 144(4), was deemed to be a capital loss of the particular employee for the taxation year, and(ii)was not designated by the trust in respect of any other employee who was a beneficiary under the plan,shall if so designated by the trust in respect of the particular employee in its return of income for the year under this Part, be deemed to be income of the particular employee for the taxation year from sources in that country; and(b)an employee who is a beneficiary under an employees profit sharing plan shall be deemed to have paid as non-business-income tax for a taxation year, on the income that the employee is deemed by paragraph 144(8.1)(a) to have for the year from sources in a foreign country, to the government of that country an amount equal to that proportion of the non-business-income tax paid by the trust governed by the plan for the year to the government of that country, or to the government of a state, province or other political subdivision of that country (except such portion of that tax as was deductible under subsection 20(11) in computing its income for the year) that(i)the income that the employee is deemed by paragraph 144(8.1)(a) to have for the year from sources in that countryis of(ii)the income of the trust for the year from sources (other than businesses carried on by it) in that country.
(i)may reasonably be considered (having regard to all the circumstances including the terms and conditions of the plan) to be part of(A)the income that, by virtue of subsection 144(3), was included in computing the income for a taxation year of a particular employee who was a beneficiary under the plan, or(B)the amount, if any, by which(I)the total of amounts each of which is a capital gain of the trust that, by virtue of subsection 144(4), was deemed to be a capital gain of the particular employee for a taxation yearexceeds(II)the total of amounts each of which is a capital loss of the trust that, by virtue of subsection 144(4), was deemed to be a capital loss of the particular employee for the taxation year, and(ii)was not designated by the trust in respect of any other employee who was a beneficiary under the plan,
(A)the income that, by virtue of subsection 144(3), was included in computing the income for a taxation year of a particular employee who was a beneficiary under the plan, or(B)the amount, if any, by which(I)the total of amounts each of which is a capital gain of the trust that, by virtue of subsection 144(4), was deemed to be a capital gain of the particular employee for a taxation yearexceeds(II)the total of amounts each of which is a capital loss of the trust that, by virtue of subsection 144(4), was deemed to be a capital loss of the particular employee for the taxation year, and
(I)the total of amounts each of which is a capital gain of the trust that, by virtue of subsection 144(4), was deemed to be a capital gain of the particular employee for a taxation year
(II)the total of amounts each of which is a capital loss of the trust that, by virtue of subsection 144(4), was deemed to be a capital loss of the particular employee for the taxation year, and
(i)the income that the employee is deemed by paragraph 144(8.1)(a) to have for the year from sources in that country
(ii)the income of the trust for the year from sources (other than businesses carried on by it) in that country.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1441994, c. 21, s. 681995, c. 3, s. 421998, c. 19, s. 169
144.1(1)The following definitions apply in this section.actuaryactuarymeans a Fellow of the Canadian Institute of Actuaries. (actuaire)class of beneficiariesclass of beneficiariesof a trust means a group of beneficiaries who have identical rights or interests under the trust.  (catégorie de bénéficiaires)designated employee benefitdesignated employee benefitmeans a benefit that is(a)from a group sickness or accident insurance plan;(b)from a group term life insurance policy;(c)from a private health services plan;(d)in respect of a counselling service described in subparagraph 6(1)(a)(iv); or(e)not a death benefit, but that would be a death benefit if the amounts determined for paragraphs (a) and (b) of the definitiondeath benefitin subsection 248(1) were nil. (prestation désignée)employeeemployeemeans a current or former employee of an employer and includes an individual in respect of whom the employer has assumed responsibility for the provision of designated employee benefits as a result of the acquisition by the employer of a business in which the individual was employed. (employé)key employeekey employee, of an employer in respect of a taxation year, means an employee who(a)was at any time in the taxation year or in a preceding taxation year, a specified employee of the employer; or(b)was an employee whose employment income from the employer in any two of the five taxation years preceding the year exceeded five times the Year’s Maximum Pensionable Earnings (as determined under section 18 of theCanada Pension Plan) for the calendar year in which the employment income was earned. (employé clé)Marginal note:Employee life and health trust(2)A trust that is established for employees of one or more employers (each referred to in this subsection as a “participating employer”) is an employee life and health trust for a taxation year if, throughout the taxation year, under the terms that govern the trust,(a)the only purpose of the trust is to provide benefits to, or for the benefit of, persons described in subparagraph (d)(i) or (ii) and all or substantially all of the total cost of the benefits is applicable to designated employee benefits;(b)on wind-up or reorganization, the property of the trust may only be distributed to(i)each remaining beneficiary of the trust who is described in subparagraph (d)(i) or (ii) (other than a key employee or an individual who is related to a key employee) on apro ratabasis,(ii)another employee life and health trust, or(iii)after the death of the last beneficiary described in subparagraph (d)(i) or (ii), Her Majesty in right of Canada or a province;(c)the trust meets one of the following conditions:(i)the trust is required to be resident in Canada, determined without reference to section 94, or(ii)if the condition in subparagraph (i) is not met, it is the case that(A)employee benefits are provided to employees who are resident in Canada and to employees who are not resident in Canada,(B)one or more participating employers are employers that are resident in a country other than Canada, and(C)the trust is required to be resident in a country in which a participating employer resides;(d)the trust may not have any beneficiaries other than persons each of whom is(i)an employee of a participating employer or former participating employer,(ii)an individual who, in respect of an employee of a participating employer or former participating employer, is (or, if the employee is deceased, was, at the time of the employee’s death)(A)the spouse or common-law partner of the employee, or(B)related to the employee and either a member of the employee’s household or dependent on the employee for support,(iii)another employee life and health trust, or(iv)Her Majesty in right of Canada or a province;(e)the trust meets one of the following conditions:(i)it contains at least one class of beneficiaries where(A)the members of the class represent at least 25% of all of the beneficiaries of the trust who are employees of the participating employers under the trust, and(B)either of the following conditions is met:(I)at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or(II)the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or(ii)in respect of the private health services plan under the trust, the total cost of benefits provided to each key employee (and to persons described in subparagraph (2)(d)(ii) in respect of the key employee) in relation to the year does not exceed the amount determined by the formula$2,500 × A(B/C)whereAis the total number of persons each of whom(A)is a person to whom designated employee benefits are provided under the plan, and(B)is the key employee or a person described in subparagraph (2)(d)(ii) in respect of the key employee,Bis the number of days in the year that the key employee was employed on a full-time basis by an employer that participates in the plan, andCis the number of days in the year;(f)the rights under the trust of each key employee of a participating employer are not more advantageous than the rights of a class of beneficiaries described in paragraph (e);(g)no participating employer, nor any person who does not deal at arm’s length with a participating employer, has any rights under the trust as a beneficiary or otherwise, except rights to(i)designated employee benefits,(ii)to enforce covenants, warranties or similar provisions regarding(A)the maintenance of the trust as an employee life and health trust, or(B)the operation of the trust in a manner that prevents subsection (3) from applying to prohibit the deduction of an amount by the trust under subsection 104(6), or(iii)prescribed payments; and(h)[Repealed, 2021, c. 23, s. 30](i)trustees who do not deal at arm’s length with one or more participating employers must not constitute the majority of the trustees of the trust.Marginal note:Breach of terms, etc.(3)No amount may be deducted in a taxation year by an employee life and health trust pursuant to subsection 104(6) if in the taxation year the trust(a)is not operated in accordance with the terms required by subsection (2) to govern the trust, unless it is reasonable to conclude that its trustees neither knew nor ought to have known that designated employee benefits have been provided to, or contributions have been made in respect of, beneficiaries other than those described in subparagraph (2)(d)(i) or (ii); or(b)provides any benefit for which, if the benefit had been paid directly to the employee and not out of the trust, the contributions or premiums would not be deductible in computing the income of an employer in respect of any taxation year.Marginal note:Deductibility of employer contributions(4)In computing the income of an employer,(a)the employer may deduct for a taxation year the portion of its contributions to an employee life and health trust made in the year that may reasonably be regarded as having been contributed to enable the trust to(i)pay premiums to an insurance corporation that is licensed to provide insurance under the laws of Canada or a province for insurance coverage for the year or a prior year in respect of designated employee benefits for beneficiaries described in subparagraph (2)(d)(i) or (ii), or(ii)otherwise provide(A)group term life insurance as described in clause 18(9)(a)(iii)(B), or(B)any designated employee benefits payable in the year or a prior year to, or for the benefit of, beneficiaries described in subparagraph (2)(d)(i) or (ii); and(b)the portion of any contribution made to an employee life and health trust that exceeds the amount deductible under paragraph (a) and that may reasonably be regarded as enabling the trust to provide or pay benefits described in subparagraphs (a)(i) or (ii) in a subsequent taxation year is deductible for that year.Marginal note:Actuarial determination(5)For the purposes of subsection (4), if, in respect of an employer’s obligations to fund an employee life and health trust, a report has been prepared by an independent actuary, using accepted actuarial principles and practices, before the time of a contribution by the employer, the portion of the contribution that the report specifies to be the amount that the employee life and health trust is reasonably expected to pay or incur in a taxation year in order to provide designated employee benefits to beneficiaries described in subparagraph (2)(d)(i) or (ii) for a taxation year is, in the absence of evidence to the contrary, presumed to have been contributed to enable the trust to provide those benefits for the year.Marginal note:Deductibility — collectively bargained or similar agreement(6)Despite subsection (4) and paragraph 18(9)(a), an employer may deduct in computing its income for a taxation year the amount that it is required to contribute for the year to an employee life and health trust if the following conditions are met at the time that the contribution is made:(a)the employer contributes to the trust in accordance with a contribution formula that does not provide for any variation in contributions determined by reference to the financial experience of the trust and either of the following conditions is met:(i)if there is a collective bargaining agreement, the trust provides benefits(A)negotiated under the collective bargaining agreement, or(B)under a participation agreement that are substantially the same as under the collective bargaining agreement, or(ii)in any other case, the trust provides benefits in accordance with an arrangement that meets the following conditions:(A)there is a legal requirement for each employer to participate in accordance with the terms and conditions that govern the trust,(B)there are a minimum of 50 beneficiaries under the trust who are employees of the participating employers in respect of the trust, and(C)each employee who is a beneficiary under the trust deals at arm’s length with each participating employer in respect of the trust; and(b)contributions that are to be made by each employer are determined, in whole or in part, by reference to the number of hours worked by individual employees of the employer or some other measure that is specific to each employee with respect to whom contributions are made to the trust.Marginal note:Maximum deductible(7)The amount deducted in a taxation year by an employer in computing its income in respect of contributions made to an employee life and health trust shall not exceed the amount determined by the formulaA – BwhereAis the total of all amounts contributed by the employer to the trust in the year or in a preceding taxation year; andBis the total of all amounts deducted by the employer in a preceding taxation year in respect of amounts contributed by the employer to the trust.Marginal note:Employer promissory note(8)If an employer issues a promissory note or provides other evidence of its indebtedness to an employee life and health trust in respect of its obligation to the trust,(a)the issuance of the note or the provision of the evidence of indebtedness to the trust is not a contribution to the trust; and(b)a payment by the employer to the trust in full or partial satisfaction of its liability under the note or the evidence of indebtedness, whether stated to be of principal or interest or any other amount, is deemed to be an employer contribution to the trust that is subject to this section and not a payment of principal or interest on the note or indebtedness.Marginal note:Trust status — subsequent times(9)For the purposes of determining whether an amount is deductible by an employer under subsection (4), if a trust was an employee life and health trust at the time that a promissory note or other evidence of indebtedness referred to in subsection (8) was issued or provided, the trust is deemed to be an employee life and health trust at each time that an employer contribution is deemed to have been made under paragraph (8)(b) in respect of the note or other indebtedness.Marginal note:Employee contributions(10)For the purposes of paragraph 6(1)(f), subsection 6(4) and paragraph 118.2(2)(q), employee contributions to an employee life and health trust, to the extent that they are, and are identified by the trust at the time of contribution as, contributions in respect of a particular designated employee benefit, are deemed to be payments by the employee in respect of the particular designated employee benefit.Marginal note:Income inclusion(11)If a trust that is, or was, at any time, an employee life and health trust pays an amount as a distribution from the trust to any person in a taxation year, the amount of the distribution shall be included in computing the person’s income for the year, except to the extent that the amount is(a)a payment of a designated employee benefit that is not included in the person’s income because of section 6; or(b)a distribution to another employee life and health trust that is a beneficiary of the employee life and health trust.Marginal note:Deemed separate trusts(12)Where contributions have been received by an employee life and health trust from more than one employer, the trust is deemed to be a separate trust established in respect of the property held for the benefit of beneficiaries described in subparagraph (2)(d)(i) or (ii) in respect of a particular employer, if(a)the trustee designates the property to be held in a separate trust for the benefit of those beneficiaries in an election made on or before the filing-due date of the first taxation year of the separate trust described in this subsection; and(b)under the terms of the trust, contributions from the employer and the income derived from those contributions accrues solely for the benefit of those beneficiaries.Marginal note:Non-capital losses(13)No non-capital loss is deductible by an employee life and health trust in computing its taxable income for a taxation year, except as provided by subsections 111(7.3) to (7.5).Marginal note:Conditions — deemed employee life and health trust(14)Subsection (15) applies in respect of a trust if(a)the trust was established before February 28, 2018;(b)the contributions to the trust are determined in connection with a collective bargaining agreement;(c)all or substantially all of the employee benefits provided by the trust are designated employee benefits; and(d)the trust elects in prescribed form and manner that subsection (15) applies as of a particular date after 2018.Marginal note:Deemed employee life and health trust(15)If this subsection applies in respect of a trust,(a)the trust is deemed for the purposes of the Act to be an employee life and health trust from the particular date referred to in paragraph (14)(d) until the earliest of(i)the end of 2022,(ii)the day that the trust satisfies the conditions in subsection (2), and(iii)any day on which the condition in paragraph (14)(c) is not satisfied; and(b)at any time that the trust is an employee life and health trust because of paragraph (a),(i)subsection 111(7.5) applies to the trust as if the reference in paragraph (b) of that subsection to “subsection 144.1(3)” were read as a reference to “paragraph 144.1(3)(b)”, and(ii)subsection (3) applies to the trust without reference to its paragraph (a).Marginal note:Trust-to-trust transfer(16)If a property is transferred from a trust that provides employee benefits substantially all of which are designated employee benefits (referred to in this subsection as the “transferor trust”) to an employee life and health trust (referred to in this subsection as the “receiving trust”), and if the Minister has been so notified in prescribed form, then(a)the transferred property is deemed to have been disposed of by the transferor trust, and to have been acquired by the receiving trust, for an amount equal to the cost amount of the property to the transferor trust immediately before the disposition; and(b)section 107.1 does not apply to the transfer.Marginal note:Deductibility of transferred property(17)If subsection (16) applies to a transfer of property to an employee life and health trust, the transfer shall not be considered to be a contribution to the employee life and health trust for the purposes of subsections (4) and (6).Marginal note:Requirement to file(18)A trust shall, on or before its first filing-due date after 2021, notify the Minister in prescribed form that it is an employee life and health trust if(a)prior to February 27, 2018, it provided employee benefits substantially all of which are designated employee benefits;(b)after February 26, 2018, it becomes an employee life and health trust because it satisfies the conditions in subsection (2); and(c)subsections (15) and (16) do not apply to the trust.
(a)from a group sickness or accident insurance plan;(b)from a group term life insurance policy;(c)from a private health services plan;(d)in respect of a counselling service described in subparagraph 6(1)(a)(iv); or(e)not a death benefit, but that would be a death benefit if the amounts determined for paragraphs (a) and (b) of the definitiondeath benefitin subsection 248(1) were nil. (prestation désignée)
(a)was at any time in the taxation year or in a preceding taxation year, a specified employee of the employer; or(b)was an employee whose employment income from the employer in any two of the five taxation years preceding the year exceeded five times the Year’s Maximum Pensionable Earnings (as determined under section 18 of theCanada Pension Plan) for the calendar year in which the employment income was earned. (employé clé)
(a)the only purpose of the trust is to provide benefits to, or for the benefit of, persons described in subparagraph (d)(i) or (ii) and all or substantially all of the total cost of the benefits is applicable to designated employee benefits;(b)on wind-up or reorganization, the property of the trust may only be distributed to(i)each remaining beneficiary of the trust who is described in subparagraph (d)(i) or (ii) (other than a key employee or an individual who is related to a key employee) on apro ratabasis,(ii)another employee life and health trust, or(iii)after the death of the last beneficiary described in subparagraph (d)(i) or (ii), Her Majesty in right of Canada or a province;(c)the trust meets one of the following conditions:(i)the trust is required to be resident in Canada, determined without reference to section 94, or(ii)if the condition in subparagraph (i) is not met, it is the case that(A)employee benefits are provided to employees who are resident in Canada and to employees who are not resident in Canada,(B)one or more participating employers are employers that are resident in a country other than Canada, and(C)the trust is required to be resident in a country in which a participating employer resides;(d)the trust may not have any beneficiaries other than persons each of whom is(i)an employee of a participating employer or former participating employer,(ii)an individual who, in respect of an employee of a participating employer or former participating employer, is (or, if the employee is deceased, was, at the time of the employee’s death)(A)the spouse or common-law partner of the employee, or(B)related to the employee and either a member of the employee’s household or dependent on the employee for support,(iii)another employee life and health trust, or(iv)Her Majesty in right of Canada or a province;(e)the trust meets one of the following conditions:(i)it contains at least one class of beneficiaries where(A)the members of the class represent at least 25% of all of the beneficiaries of the trust who are employees of the participating employers under the trust, and(B)either of the following conditions is met:(I)at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or(II)the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or(ii)in respect of the private health services plan under the trust, the total cost of benefits provided to each key employee (and to persons described in subparagraph (2)(d)(ii) in respect of the key employee) in relation to the year does not exceed the amount determined by the formula$2,500 × A(B/C)whereAis the total number of persons each of whom(A)is a person to whom designated employee benefits are provided under the plan, and(B)is the key employee or a person described in subparagraph (2)(d)(ii) in respect of the key employee,Bis the number of days in the year that the key employee was employed on a full-time basis by an employer that participates in the plan, andCis the number of days in the year;(f)the rights under the trust of each key employee of a participating employer are not more advantageous than the rights of a class of beneficiaries described in paragraph (e);(g)no participating employer, nor any person who does not deal at arm’s length with a participating employer, has any rights under the trust as a beneficiary or otherwise, except rights to(i)designated employee benefits,(ii)to enforce covenants, warranties or similar provisions regarding(A)the maintenance of the trust as an employee life and health trust, or(B)the operation of the trust in a manner that prevents subsection (3) from applying to prohibit the deduction of an amount by the trust under subsection 104(6), or(iii)prescribed payments; and(h)[Repealed, 2021, c. 23, s. 30](i)trustees who do not deal at arm’s length with one or more participating employers must not constitute the majority of the trustees of the trust.
(i)each remaining beneficiary of the trust who is described in subparagraph (d)(i) or (ii) (other than a key employee or an individual who is related to a key employee) on apro ratabasis,(ii)another employee life and health trust, or(iii)after the death of the last beneficiary described in subparagraph (d)(i) or (ii), Her Majesty in right of Canada or a province;
(i)the trust is required to be resident in Canada, determined without reference to section 94, or(ii)if the condition in subparagraph (i) is not met, it is the case that(A)employee benefits are provided to employees who are resident in Canada and to employees who are not resident in Canada,(B)one or more participating employers are employers that are resident in a country other than Canada, and(C)the trust is required to be resident in a country in which a participating employer resides;
(A)employee benefits are provided to employees who are resident in Canada and to employees who are not resident in Canada,(B)one or more participating employers are employers that are resident in a country other than Canada, and(C)the trust is required to be resident in a country in which a participating employer resides;
(i)an employee of a participating employer or former participating employer,(ii)an individual who, in respect of an employee of a participating employer or former participating employer, is (or, if the employee is deceased, was, at the time of the employee’s death)(A)the spouse or common-law partner of the employee, or(B)related to the employee and either a member of the employee’s household or dependent on the employee for support,(iii)another employee life and health trust, or(iv)Her Majesty in right of Canada or a province;
(A)the spouse or common-law partner of the employee, or(B)related to the employee and either a member of the employee’s household or dependent on the employee for support,
(i)it contains at least one class of beneficiaries where(A)the members of the class represent at least 25% of all of the beneficiaries of the trust who are employees of the participating employers under the trust, and(B)either of the following conditions is met:(I)at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or(II)the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or(ii)in respect of the private health services plan under the trust, the total cost of benefits provided to each key employee (and to persons described in subparagraph (2)(d)(ii) in respect of the key employee) in relation to the year does not exceed the amount determined by the formula$2,500 × A(B/C)whereAis the total number of persons each of whom(A)is a person to whom designated employee benefits are provided under the plan, and(B)is the key employee or a person described in subparagraph (2)(d)(ii) in respect of the key employee,Bis the number of days in the year that the key employee was employed on a full-time basis by an employer that participates in the plan, andCis the number of days in the year;
(A)the members of the class represent at least 25% of all of the beneficiaries of the trust who are employees of the participating employers under the trust, and(B)either of the following conditions is met:(I)at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or(II)the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or
(I)at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or(II)the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or
(A)is a person to whom designated employee benefits are provided under the plan, and(B)is the key employee or a person described in subparagraph (2)(d)(ii) in respect of the key employee,
(i)designated employee benefits,(ii)to enforce covenants, warranties or similar provisions regarding(A)the maintenance of the trust as an employee life and health trust, or(B)the operation of the trust in a manner that prevents subsection (3) from applying to prohibit the deduction of an amount by the trust under subsection 104(6), or(iii)prescribed payments; and
(A)the maintenance of the trust as an employee life and health trust, or(B)the operation of the trust in a manner that prevents subsection (3) from applying to prohibit the deduction of an amount by the trust under subsection 104(6), or
(a)is not operated in accordance with the terms required by subsection (2) to govern the trust, unless it is reasonable to conclude that its trustees neither knew nor ought to have known that designated employee benefits have been provided to, or contributions have been made in respect of, beneficiaries other than those described in subparagraph (2)(d)(i) or (ii); or(b)provides any benefit for which, if the benefit had been paid directly to the employee and not out of the trust, the contributions or premiums would not be deductible in computing the income of an employer in respect of any taxation year.
(a)the employer may deduct for a taxation year the portion of its contributions to an employee life and health trust made in the year that may reasonably be regarded as having been contributed to enable the trust to(i)pay premiums to an insurance corporation that is licensed to provide insurance under the laws of Canada or a province for insurance coverage for the year or a prior year in respect of designated employee benefits for beneficiaries described in subparagraph (2)(d)(i) or (ii), or(ii)otherwise provide(A)group term life insurance as described in clause 18(9)(a)(iii)(B), or(B)any designated employee benefits payable in the year or a prior year to, or for the benefit of, beneficiaries described in subparagraph (2)(d)(i) or (ii); and(b)the portion of any contribution made to an employee life and health trust that exceeds the amount deductible under paragraph (a) and that may reasonably be regarded as enabling the trust to provide or pay benefits described in subparagraphs (a)(i) or (ii) in a subsequent taxation year is deductible for that year.
(i)pay premiums to an insurance corporation that is licensed to provide insurance under the laws of Canada or a province for insurance coverage for the year or a prior year in respect of designated employee benefits for beneficiaries described in subparagraph (2)(d)(i) or (ii), or(ii)otherwise provide(A)group term life insurance as described in clause 18(9)(a)(iii)(B), or(B)any designated employee benefits payable in the year or a prior year to, or for the benefit of, beneficiaries described in subparagraph (2)(d)(i) or (ii); and
(A)group term life insurance as described in clause 18(9)(a)(iii)(B), or(B)any designated employee benefits payable in the year or a prior year to, or for the benefit of, beneficiaries described in subparagraph (2)(d)(i) or (ii); and
(a)the employer contributes to the trust in accordance with a contribution formula that does not provide for any variation in contributions determined by reference to the financial experience of the trust and either of the following conditions is met:(i)if there is a collective bargaining agreement, the trust provides benefits(A)negotiated under the collective bargaining agreement, or(B)under a participation agreement that are substantially the same as under the collective bargaining agreement, or(ii)in any other case, the trust provides benefits in accordance with an arrangement that meets the following conditions:(A)there is a legal requirement for each employer to participate in accordance with the terms and conditions that govern the trust,(B)there are a minimum of 50 beneficiaries under the trust who are employees of the participating employers in respect of the trust, and(C)each employee who is a beneficiary under the trust deals at arm’s length with each participating employer in respect of the trust; and(b)contributions that are to be made by each employer are determined, in whole or in part, by reference to the number of hours worked by individual employees of the employer or some other measure that is specific to each employee with respect to whom contributions are made to the trust.
(i)if there is a collective bargaining agreement, the trust provides benefits(A)negotiated under the collective bargaining agreement, or(B)under a participation agreement that are substantially the same as under the collective bargaining agreement, or(ii)in any other case, the trust provides benefits in accordance with an arrangement that meets the following conditions:(A)there is a legal requirement for each employer to participate in accordance with the terms and conditions that govern the trust,(B)there are a minimum of 50 beneficiaries under the trust who are employees of the participating employers in respect of the trust, and(C)each employee who is a beneficiary under the trust deals at arm’s length with each participating employer in respect of the trust; and
(A)negotiated under the collective bargaining agreement, or(B)under a participation agreement that are substantially the same as under the collective bargaining agreement, or
(A)there is a legal requirement for each employer to participate in accordance with the terms and conditions that govern the trust,(B)there are a minimum of 50 beneficiaries under the trust who are employees of the participating employers in respect of the trust, and(C)each employee who is a beneficiary under the trust deals at arm’s length with each participating employer in respect of the trust; and
(a)the issuance of the note or the provision of the evidence of indebtedness to the trust is not a contribution to the trust; and(b)a payment by the employer to the trust in full or partial satisfaction of its liability under the note or the evidence of indebtedness, whether stated to be of principal or interest or any other amount, is deemed to be an employer contribution to the trust that is subject to this section and not a payment of principal or interest on the note or indebtedness.
(a)a payment of a designated employee benefit that is not included in the person’s income because of section 6; or(b)a distribution to another employee life and health trust that is a beneficiary of the employee life and health trust.
(a)the trustee designates the property to be held in a separate trust for the benefit of those beneficiaries in an election made on or before the filing-due date of the first taxation year of the separate trust described in this subsection; and(b)under the terms of the trust, contributions from the employer and the income derived from those contributions accrues solely for the benefit of those beneficiaries.
(a)the trust was established before February 28, 2018;(b)the contributions to the trust are determined in connection with a collective bargaining agreement;(c)all or substantially all of the employee benefits provided by the trust are designated employee benefits; and(d)the trust elects in prescribed form and manner that subsection (15) applies as of a particular date after 2018.
(a)the trust is deemed for the purposes of the Act to be an employee life and health trust from the particular date referred to in paragraph (14)(d) until the earliest of(i)the end of 2022,(ii)the day that the trust satisfies the conditions in subsection (2), and(iii)any day on which the condition in paragraph (14)(c) is not satisfied; and(b)at any time that the trust is an employee life and health trust because of paragraph (a),(i)subsection 111(7.5) applies to the trust as if the reference in paragraph (b) of that subsection to “subsection 144.1(3)” were read as a reference to “paragraph 144.1(3)(b)”, and(ii)subsection (3) applies to the trust without reference to its paragraph (a).
(i)the end of 2022,(ii)the day that the trust satisfies the conditions in subsection (2), and(iii)any day on which the condition in paragraph (14)(c) is not satisfied; and
(i)subsection 111(7.5) applies to the trust as if the reference in paragraph (b) of that subsection to “subsection 144.1(3)” were read as a reference to “paragraph 144.1(3)(b)”, and(ii)subsection (3) applies to the trust without reference to its paragraph (a).
(a)the transferred property is deemed to have been disposed of by the transferor trust, and to have been acquired by the receiving trust, for an amount equal to the cost amount of the property to the transferor trust immediately before the disposition; and(b)section 107.1 does not apply to the transfer.
(a)prior to February 27, 2018, it provided employee benefits substantially all of which are designated employee benefits;(b)after February 26, 2018, it becomes an employee life and health trust because it satisfies the conditions in subsection (2); and(c)subsections (15) and (16) do not apply to the trust.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2010, c. 25, s. 342021, c. 23, s. 30
145(1)In this section,registered supplementary unemployment benefit planregistered supplementary unemployment benefit planmeans a supplementary unemployment benefit plan accepted by the Minister for registration for the purposes of this Act in respect of its constitution and operations for the taxation year under consideration; (régime enregistré de prestations supplémentaires de chômage)supplementary unemployment benefit plansupplementary unemployment benefit planmeans an arrangement, other than an arrangement in the nature of a superannuation or pension fund or plan or an employees profit sharing plan, under which payments are made by an employer to a trustee in trust exclusively for the payment of periodic amounts to employees or former employees of the employer who are or may be laid off for any temporary or indefinite period. (régime de prestations supplémentaires de chômage)Marginal note:No tax while trust governed by plan(2)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 registered supplementary unemployment benefit plan.Marginal note:Amounts received taxable(3)There shall be included in computing the income of a taxpayer for a taxation year each amount received by the taxpayer under a supplementary unemployment benefit plan from the trustee under the plan at any time in the year.Marginal note:Amounts received on amendment or winding-up of plan(4)There shall be included in computing the income for a taxation year of a taxpayer who, as an employer, has made any payment to a trustee under a supplementary unemployment benefit plan, any amount received by the taxpayer in the year as a result of an amendment to or modification of the plan or as a result of the termination or winding-up of the plan.Marginal note:Payments by employer deductible(5)An amount paid by an employer to a trustee under a registered supplementary unemployment benefit plan during a taxation year or within 30 days thereafter may be deducted in computing the employer’s income for the taxation year to the extent that it was not deductible in computing income for a previous taxation year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “145”1977-78, c. 1, s. 101(F)
146(1)In this section,annuitantannuitantmeans(a)until such time after maturity of the plan as an individual’s spouse or common-law partner becomes entitled, as a consequence of the individual’s death, to receive benefits to be paid out of or under the plan, the individual referred to in paragraph (a) or (b) of the definitionretirement savings planin this subsection for whom, under a retirement savings plan, a retirement income is to be provided, and(b)thereafter, the spouse or common-law partner referred to in paragraph (a); (rentier)benefitbenefitincludes any amount received out of or under a retirement savings plan other than(a)the portion thereof received by a person other than the annuitant that can reasonably be regarded as part of the amount included in computing the income of an annuitant by virtue of subsections 146(8.8) and 146(8.9),(b)an amount received by the person with whom the annuitant has the contract or arrangement described in the definitionretirement savings planin this subsection as a premium under the plan,(b.1)an amount in respect of which the annuitant pays a tax under Part XI.01, unless the tax is waived, cancelled or refunded,(c)an amount, or part thereof, received in respect of the income of the trust under the plan for a taxation year for which the trust was not exempt from tax by virtue of paragraph 146(4)(c), and(c.1)a tax-paid amount described in paragraph (b) of the definitiontax-paid amountin this subsection that relates to interest or another amount included in computing income otherwise than because of this sectionand without restricting the generality of the foregoing includes any amount paid to an annuitant under the plan(d)in accordance with the terms of the plan,(e)resulting from an amendment to or modification of the plan, or(f)resulting from the termination of the plan; (prestation)earned incomeearned incomeof a taxpayer for a taxation year means the amount, if any, by which the total of all amounts each of which is(a)the taxpayer’s income (other than an amount described in paragraph 12(1)(z)) for a period in the year throughout which the taxpayer was resident in Canada from(i)an office or employment, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2),(ii)a business carried on by the taxpayer either alone or as a partner actively engaged in the business, or(iii)property, where the income is derived from the rental of real or immovable property or from royalties in respect of a work or invention of which the taxpayer was the author or inventor,(b)an amount included under paragraph 56(1)(b), (c.2), (g) or (o) or subparagraph 56(1)(r)(v) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada,(b.01)an amount included under paragraph 56(1)(n) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada in connection with a program that consists primarily of research and does not lead to a diploma from a college or a collège d’enseignement général et professionnel, or a bachelor, masters, doctoral or equivalent degree,(b.1)an amount received by the taxpayer in the year and at a time when the taxpayer is resident in Canada as, on account of, in lieu of payment of or in satisfaction of, a disability pension under theCanada Pension Planor a provincial pension plan as defined in section 3 of that Act,(b.2)the taxpayer’s qualifying performance income (as defined in subsection 143.1(1)) that is deemed by paragraph 143.1(1.2)(c) to be income of an amateur athlete trust for the year,(c)the taxpayer’s income (other than an amount described in paragraph 12(1)(z)) for a period in the year throughout which the taxpayer was not resident in Canada from(i)the duties of an office or employment performed by the taxpayer in Canada, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2), or(ii)a business carried on by the taxpayer in Canada, either alone or as a partner actively engaged in the businessexcept to the extent that the income 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, or(d)in the case of a taxpayer described in subsection 115(2), the total that would be determined under paragraph 115(2)(e) in respect of the taxpayer for the year if(i)that paragraph were read without reference to subparagraph 115(2)(e)(iv), and(ii)subparagraph 115(2)(e)(ii) were read without any reference therein to paragraph 56(1)(n),except any part thereof included in the total determined under this definition by reason of paragraph (c) or 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,exceeds the total of all amounts each of which is(e)the taxpayer’s loss for a period in the year throughout which the taxpayer was resident in Canada from(i)a business carried on by the taxpayer, either alone or as a partner actively engaged in the business, or(ii)property, where the loss is sustained from the rental of real or immovable property,(f)an amount deductible under paragraph 60(b), or deducted under paragraph 60(c.2), in computing the taxpayer’s income for the year, or(g)the taxpayer’s loss for a period in the year throughout which the taxpayer was not resident in Canada from a business carried on by the taxpayer in Canada, either alone or as a partner actively engaged in the business,(h)[Repealed, 2016, c. 12, s. 52]and, for the purposes of this definition, the income or loss of a taxpayer for any period in a taxation year is the taxpayer’s income or loss computed as though that period were the whole taxation year; (revenu gagné)issuerissuermeans the person referred to in the definitionretirement savings planin this subsection with whom an annuitant has a contract or arrangement that is a retirement savings plan; (émetteur)maturitymaturitymeans the date fixed under a retirement savings plan for the commencement of any retirement income the payment of which is provided for by the plan; (échéance)net past service pension adjustmentnet past service pension adjustmentof a taxpayer for a taxation year means the positive or negative amount determined by the formulaP + Q - GwherePis the total of all amounts each of which is the taxpayer’s past service pension adjustment for the year in respect of an employer,Qis the total of all amounts each of which is a prescribed amount in respect of the taxpayer for the year, andGis the amount of the taxpayer’s PSPA withdrawals for the year, determined as of the end of the year in accordance with prescribed rules; (facteur d’équivalence pour services passés net)non-qualified investmentnon-qualified investmenthas the same meaning as in subsection 207.01(1); (placement non admissible)premiumpremiummeans any periodic or other amount paid or payable under a retirement savings plan(a)as consideration for any contract referred to in paragraph (a) of the definitionretirement savings planto pay a retirement income, or(b)as a contribution or deposit referred to in paragraph (b) of that definition for the purpose stated in that paragraphbut except for the purposes of paragraph (b) of the definitionbenefitin this subsection, paragraph (2)(b.3), subsection (22) and the definitionexcluded premiumin subsection 146.02(1), does not include a repayment to which paragraph (b) or (d) of the definitionexcluded withdrawalin subsection 146.01(1), or paragraph (b) of the definitionexcluded withdrawalin subsection 146.02(1), applies or an amount that is designated under subsection 146.01(3) or 146.02(3); (prime)qualified investmentqualified investmentfor a trust governed by a registered retirement savings plan 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 registered retirement savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”,(b)[Repealed, 2007, c. 29, s. 17](c)an annuity described in the definitionretirement incomein respect of the annuitant under the plan, if purchased from a licensed annuities provider,(c.1)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.2)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 annuitant under the plan (in this definition referred to as the “RRSP annuitant”),(iv)the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age,(v)either(A)the periodic payments are payable for the life of the RRSP annuitant and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of(I)the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and(II)the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or(B)the periodic payments are payable for a term equal to(I)90 years minus the age described in subclause (I), or(II)90 years minus the age described in subclause (II), and(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 146(3)(b)(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(d)such other investments as may be prescribed by regulations of the Governor in Council made on the recommendation of the Minister of Finance; (placement admissible)RRSP deduction limitRRSP deduction limitof a taxpayer for a taxation year means the amount determined by the formulaA + B + R - CwhereAis the taxpayer’s unused RRSP deduction room at the end of the preceding taxation year,Bis the amount, if any, by which(a)the lesser of the RRSP dollar limit for the year and 18% of the taxpayer’s earned income for the preceding taxation yearexceeds the total of all amounts each of which is(b)the taxpayer’s pension adjustment for the preceding taxation year in respect of an employer, or(c)a prescribed amount in respect of the taxpayer for the year,Cis the taxpayer’s net past service pension adjustment for the year, andRis the taxpayer’s total pension adjustment reversal for the year; (maximum déductible au titre des REER)RRSP dollar limitRRSP dollar limitfor a calendar year means(a)for years other than 1996 and 2003, the money purchase limit for the preceding year,(b)for 1996, $13,500, and(c)for 2003, $14,500; (plafond REER)refund of premiumsrefund of premiumsmeans any amount paid out of or under a registered retirement savings plan (other than a tax-paid amount in respect of the plan) as a consequence of the death of the annuitant under the plan,(a)to an individual who was, immediately before the death, a spouse or common-law partner of the annuitant, where the annuitant died before the maturity of the plan, or(b)to a child or grandchild of the annuitant who was, immediately before the death, financially dependent on the annuitant for support; (remboursement de primes)registered retirement savings planregistered retirement savings planmeans a retirement savings plan accepted by the Minister for registration for the purposes of this Act as complying with the requirements of this section; (régime enregistré d’épargne-retraite)retirement incomeretirement incomemeans(a)an annuity commencing at maturity, and with or without a guaranteed term commencing at maturity, not exceeding the term referred to in paragraph (b), or, in the case of a plan entered into before March 14, 1957, not exceeding 20 years, payable to(i)the annuitant for the annuitant’s life, or(ii)the annuitant for the lives, jointly, of the annuitant and the annuitant’s spouse and to the survivor of them for the survivor’s life, or(b)an annuity commencing at maturity, payable to the annuitant, or to the annuitant for the annuitant’s life and to the spouse after the annuitant’s death, for a term of years equal to 90 minus either(i)the age in whole years of the annuitant at the maturity of the plan, or(ii)where the annuitant’s spouse is younger than the annuitant and the annuitant so elects, the age in whole years of the spouse at the maturity of the plan,issued by a person described in the definitionretirement savings planin this subsection with whom an individual may have a contract or arrangement that is a retirement savings plan,or any combination thereof; (revenu de retraite)retirement savings planretirement savings planmeans(a)a contract between an individual and a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, under which, in consideration of payment by the individual or the individual’s spouse or common-law partner of any periodic or other amount as consideration under the contract, a retirement income commencing at maturity is to be provided for the individual, or(b)an arrangement under which payment is made by an individual or the individual’s spouse or common-law partner(i)in trust to 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, of any periodic or other amount as a contribution under the trust,(ii)to a corporation approved by the Governor in Council for the purposes of this section that is licensed or otherwise authorized under the laws of Canada or a province to issue investment contracts providing for the payment to or to the credit of the holder thereof of a fixed or determinable amount at maturity, of any periodic or other amount as a contribution under such a contract between the individual and that corporation, or(iii)as a deposit with a branch or office, in Canada, of(A)a person who 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,(in this section referred to as a “depositary”)to be used, invested or otherwise applied by that corporation or that depositary, as the case may be, for the purpose of providing for the individual, commencing at maturity, a retirement income; (régime d’épargne-retraite)spousal or common-law partner planspousal or common-law partner plan, in relation to a taxpayer, means(a)a registered retirement savings plan(i)to which the taxpayer has, at a time when the taxpayer’s spouse or common-law partner was the annuitant under the plan, paid a premium, or(ii)that has received a payment out of or a transfer from a registered retirement savings plan or a registered retirement income fund that was a spousal or common-law partner plan in relation to the taxpayer, or(b)a registered retirement income fund that has received a payment out of or a transfer from a spousal or common-law partner plan in relation to the taxpayer; (régime au profit de l’époux ou du conjoint de fait)spousal planspousal plan[Repealed, 2001, c. 17, s. 246]tax-paid amounttax-paid amountpaid to a person in respect of a registered retirement saving plan means(a)an amount paid to the person in respect of the amount that would, if this Act were read without reference to subsection 104(6), be income of a trust governed by the plan for a taxation year for which the trust was subject to tax because of paragraph 146(4)(c), or(b)where(i)the plan is a deposit with a depositary referred to in clause (b)(iii)(B) of the definitionretirement savings planin this subsection, and(ii)an amount is received at any time out of or under the plan by the person,the portion of the amount that can reasonably be considered to relate to interest or another amount in respect of the deposit that was required to be included in computing the income of any person (other than the annuitant) otherwise than because of this section; (montant libéré d’impôt)unused RRSP deduction roomunused RRSP deduction roomof a taxpayer at the end of a taxation year means,(a)for taxation years ending before 1991, nil, and(b)for taxation years that end after 1990, the amount, which can be positive or negative, determined by the formulaA + B + R - (C + D)whereAis the taxpayer’s unused RRSP deduction room at the end of the preceding taxation year,Bis the amount, if any, by which(i)the lesser of the RRSP dollar limit for the year and 18% of the taxpayer’s earned income for the preceding taxation yearexceeds the total of all amounts each of which is(ii)the taxpayer’s pension adjustment for the preceding taxation year in respect of an employer, or(iii)a prescribed amount in respect of the taxpayer for the year,Cis the taxpayer’s net past service pension adjustment for the year,Dis the total of all amounts each of which is(i)an amount deducted by the taxpayer under any of subsections (5) to (5.2), in computing the taxpayer’s income for the year,(ii)an amount deducted by the taxpayer under paragraph 10 of Article XVIII of theCanada-United States Tax Conventionsigned at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year,(iii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer, or(iv)the amount, if any, by which the taxpayer’s exempt-income contribution amount (as defined in subsection 147.5(1)) for the year exceeds the taxpayer’s unused non-deductible PRPP room (as defined in subsection 147.5(1)) at the end of the preceding taxation year, andRis the taxpayer’s total pension adjustment reversal for the year. (déductions inutilisées au titre des REER)Marginal note:Restriction — financially dependent(1.1)For the purposes of paragraph (b) of the definitionrefund of premiumsin subsection (1), clause 60(l)(v)(B.01), the definitioneligible individualin subsection 60.02(1), subparagraph 104(27)(e)(i) and section 147.5, it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formulaA + BwhereAis the amount determined for F in subsection 118(1.1) for that preceding taxation year; andBis nil, unless the financial dependency was because of mental or physical infirmity, in which case it is $6,180 adjusted for each such preceding taxation year that is after 2002 in the manner set out in section 117.1.Marginal note:Acceptance of plan for registration(2)The Minister shall not accept for registration for the purposes of this Act any retirement savings plan unless, in the Minister’s opinion, it complies with the following conditions:(a)the plan does not provide for the payment of any benefit before maturity except(i)a refund of premiums, and(ii)a payment to the annuitant;(b)the plan does not provide for the payment of any benefit after maturity except(i)by way of retirement income to the annuitant,(ii)to the annuitant in full or partial commutation of retirement income under the plan, and(iii)in respect of a commutation referred to in paragraph 146(2)(c.2);(b.1)the plan does not provide for a payment to the annuitant of a retirement income except by way of equal annual or more frequent periodic payments until such time as there is a payment in full or partial commutation of the retirement income and, where that commutation is partial, equal annual or more frequent periodic payments thereafter;(b.2)the plan does not provide for periodic payments in a year under an annuity after the death of the first annuitant, the total of which exceeds the total of the payments under the annuity in a year before that death;(b.3)the plan does not provide for the payment of any premium after maturity;(b.4)the plan does not provide for maturity after the end of the year in which the annuitant attains 71 years of age;(c)the plan provides that retirement income under the plan may not be assigned in whole or in part;(c.1)notwithstanding paragraph 146(2)(a), the plan permits the payment of an amount to a taxpayer where the amount is paid to reduce the amount of tax otherwise payable under Part X.1 by the taxpayer;(c.2)the plan requires the commutation of each annuity payable thereunder that would otherwise become payable to a person other than an annuitant under the plan;(c.3)the plan, where it involves a depositary, includes provisions stipulating that(i)the depositary has no right of offset as regards the property held under the plan in connection with any debt or obligation owing to the depositary, and(ii)the property held under the plan cannot be pledged, assigned or in any way alienated as security for a loan or for any purpose other than that of providing for the annuitant, commencing at maturity, a retirement income; and(c.4)[Repealed, 2011, c. 24, s. 45](d)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:Idem(3)The Minister may accept for registration for the purposes of this Act any retirement savings plan notwithstanding that the plan(a)provides for the payment of a benefit after maturity by way of dividend;(b)provides for any annual or more frequent periodic amount payable(i)to the annuitant referred to in subparagraph (a)(ii) of the definitionretirement incomein subsection 146(1) by way of an annuity described in paragraph (a) of that definition to be reduced, in the event of the death of the annuitant’s spouse or common-law partner during the lifetime of the annuitant, in such manner as to provide for the payment of equal annual or more frequent periodic amounts throughout the lifetime of the annuitant thereafter,(ii)to any person by way of an annuity, to be reduced if a pension becomes payable to that person under theOld Age Security Act, by an annual or other periodic amount not exceeding the amount payable to that person in that period under that Act,(iii)to any person by way of an annuity, to be increased or reduced depending on the increase or reduction in the value of a specified group of assets constituting the assets of a separate and distinct account or fund maintained in respect of a variable annuities business by a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada that business,(iii.1)to any person by way of an annuity under a contract that provides for the increase or reduction of the annuity in accordance only with a change in the interest rate on which the annuity is based, if the interest rate, as increased or reduced, equals or approximates a generally available Canadian market interest rate,(iv)that may be adjusted annually to reflect(A)in whole or in part increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(B)increases at a rate specified in the annuity contract, not exceeding 4% per annum, or(v)to the annuitant by way of an annuity to be increased annually to the extent the amount or rate of return that would have been earned on a pool of investment assets (available for purchase by the public and specified in the annuity contract) exceeds an amount or rate specified in the plan and provides that no other increase may be made in the amount payable;(d)provides for the payment of any amount after the death of an annuitant thereunder;(e)is adjoined to a contract or other arrangement that is not a retirement savings plan; or(f)contains such other terms and provisions, not inconsistent with this section, as are authorized or permitted by regulations of the Governor in Council made on the recommendation of the Minister of Finance.Marginal note:No tax while trust governed by plan(4)Except as provided in subsection 146(10.1), 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 retirement savings plan, except that(a)if the trust has borrowed money (other than money used in carrying on a business) in the year or has, after June 18, 1971, borrowed money (other than money used in carrying on a business) that it has not repaid before the commencement of the year, tax is payable under this Part by the trust on its taxable income for the year;(b)in any case not described in paragraph 146(4)(a), if the trust has carried on any business or businesses in the year, tax is payable under this Part by the trust on the amount, if any, by which(i)the amount that its taxable income for the year would be if it had no incomes or losses from sources other than from that business or those businesses, as the case may be,exceeds(ii)such portion of the amount determined under subparagraph 146(4)(b)(i) in respect of the trust for the year as can reasonably be considered to be income from, or from the disposition of, qualified investments for the trust; and(c)if the last annuitant under the plan has died, tax is payable under this Part by the trust on its taxable income for each year after the year following the year in which the last annuitant died.Marginal note:Amount of RRSP premiums deductible(5)There may be deducted in computing a taxpayer’s income for a taxation year such amount as the taxpayer claims not exceeding the lesser of(a)the amount, if any, by which the total of all amounts each of which is a premium paid by the taxpayer after 1990 and on or before the day that is 60 days after the end of the year under a registered retirement savings plan under which the taxpayer was the annuitant at the time the premium was paid, other than the portion, if any, of the premium(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j), 60(j.1) or 60(l),(iii)in respect of which the taxpayer received a payment that was deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year,(iii.1)that was an exempt-income contribution amount (as defined in subsection 147.5(1)) for any taxation year,(iv)that was deductible under subsection 146(6.1) in computing the taxpayer’s income for any taxation year or(iv.1)that would be considered to be withdrawn by the taxpayer as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paidexceeds(v)the amount, if any, by which(A)the total of all amounts deducted under subsection 147.3(13.1) in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(B)the total of all amounts, in respect of transfers occurring before 1991 from registered pension plans, deemed by paragraph 147.3(10)(b) or 147.3(10)(c) to be a premium paid by the taxpayer to a registered retirement savings plan, and(b)the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all contributions made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.Marginal note:Amount of spousal RRSP premiums deductible(5.1)There may be deducted in computing a taxpayer’s income for a taxation year such amount as the taxpayer claims not exceeding the lesser of(a)the total of all amounts each of which is a premium paid by the taxpayer after 1990 and on or before the day that is 60 days after the end of the year under a registered retirement savings plan under which the taxpayer’s spouse or common-law partner (or, where the taxpayer died in the year or within 60 days after the end of the year, an individual who was the taxpayer’s spouse or common-law partner immediately before the death) was the annuitant at the time the premium was paid, other than the portion, if any, of the premium(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j.2),(iii)in respect of which the taxpayer or the taxpayer’s spouse or common-law partner has received a payment that has been deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year, or(iv)that would be considered to be withdrawn by the taxpayer’s spouse or common-law partner as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paid, and(b)the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all amounts each of which is(i)the amount deducted under subsection (5) in computing the taxpayer’s income for the year, or(ii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.Marginal note:RRSP premium(5.2)If a taxpayer’s entitlement to benefits under a defined benefit provision of a registered pension plan is transferred in accordance with subsection 147.3(4) after February 2009 and before 2011, there may be deducted in computing the taxpayer’s income for a taxation year that ends on or after the day on which the transfer was made, the amount claimed by the taxpayer in respect of premiums paid by the taxpayer in the year to a registered retirement savings plan under which the taxpayer is the annuitant, not exceeding the amount, if any, determined by the formulaA – B – CwhereAis the amount, if any, that is the lesser of(a)the prescribed amount that would have been determined for the purpose of paragraph 147.3(4)(c) if subsection 8517(3.01) of the Regulations had applied in respect of the transfer, and(b)the amount of the taxpayer’s entitlement to benefits under the provision commuted in connection with the transfer;Bis the prescribed amount for the purpose of paragraph 147.3(4)(c) that applied in respect of the transfer; andCis the total of all amounts deducted by the taxpayer under this subsection for a preceding taxation year.Marginal note:Transitional rule(5.201)For the purpose of subsection (5.2), a premium paid by a taxpayer before 2013 is deemed to have been paid in the taxation year in which the transfer referred to in that subsection was made and not in the year in which it was actually paid, if the taxpayer so elects in prescribed form.Marginal note:Anti-avoidance(5.21)Notwithstanding any other provision of this section, where(a)a registered pension plan is amended or administered in such a manner as to terminate, suspend or delay(i)the membership of an individual in the plan for the individual’s 1990 taxation year,(ii)contributions under the plan by or for the benefit of the individual in respect of the year, or(iii)the accrual of retirement benefits under the plan for the individual in respect of the year, or(b)a deferred profit sharing plan is amended or administered in such a manner as to terminate, suspend or delay contributions under the plan for the year in respect of an individual,and one of the main reasons for the termination, suspension or delay may reasonably be considered to be to reduce the pension adjustment of the individual for the year in respect of an employer, the only amount that may be deducted in computing the income for the year of the individual, in respect of premiums paid to registered retirement savings plans, is the amount that would have been deductible had that termination, suspension or delay not occurred.(6)[Repealed, 2011, c. 24, s. 45]Marginal note:Recontribution of certain withdrawals(6.1)There may be deducted in computing a taxpayer’s income for a particular taxation year the total of all amounts each of which is such portion of a prescribed premium for the particular year as was not designated for any taxation year for the purposes of paragraph 60(j), 60(j.1) or 60(l).Marginal note:Recovery of property used as security(7)Where in a taxation year a loan, for which a trust governed by a registered retirement savings plan has used or permitted to be used trust property as security, ceases to be extant, and the fair market value of the property so used was included by virtue of subsection 146(10) in computing the income of the taxpayer who is the annuitant under the plan, there may be deducted, in computing the income of the taxpayer for the taxation year, an amount equal to the amount, if any, remaining when(a)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 propertyis deducted from(b)the amount so included in computing the income of the taxpayer in consequence of the trust’s using the property, or permitting it to be used, as security for the loan.Marginal note:Benefits taxable(8)There shall be included in computing a taxpayer’s income for a taxation year the total of all amounts received by the taxpayer in the year as benefits out of or under registered retirement savings plans, other than excluded withdrawals (as defined in subsection 146.01(1) or 146.02(1)) of the taxpayer and amounts that are included under paragraph (12)(b) in computing the taxpayer’s income.Marginal note:Subsequent re-calculation(8.01)If a designated withdrawal (as defined in subsection 146.01(1)) or an amount referred to in paragraph (a) of the definitioneligible amountin subsection 146.02(1) is received by a taxpayer in a taxation year and, at any time after that year, it is determined that the amount is not an excluded withdrawal (as defined in subsection 146.01(1) or 146.02(1)), notwithstanding subsections 152(4) to (5), such assessments of tax, interest and penalties shall be made as are necessary to give effect to the determination.Marginal note:Deemed receipt of refund of premiums(8.1)If a payment out of or under a registered retirement savings plan of a deceased annuitant to the annuitant’s legal representative would have been a refund of premiums if it had been paid under the plan to an individual who is a beneficiary (as defined in subsection 108(1)) under the deceased’s estate, the payment is, to the extent it is so designated jointly by the legal representative and the individual in prescribed form filed with the Minister, deemed to be received by the individual (and not by the legal representative) at the time it was so paid as a benefit that is a refund of premiums.Marginal note:Amount deductible(8.2)Where(a)all or any portion of the premiums paid in a taxation year by a taxpayer to one or more registered retirement savings plans under which the taxpayer or the taxpayer’s spouse or common-law partner was the annuitant was not deducted in computing the taxpayer’s income for any taxation year,(b)the taxpayer or the taxpayer’s spouse or common-law partner can reasonably be regarded as having received a payment from a registered retirement savings plan or a registered retirement income fund in respect of such portion of the undeducted premiums as(i)was not paid by way of a transfer of an amount from a registered pension plan to a registered retirement savings plan,(ii)was not paid by way of a transfer of an amount from a deferred profit sharing plan to a registered retirement savings plan in accordance with subsection 147(19), and(iii)was not paid by way of a transfer of an amount to a registered retirement savings plan from(A)a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or(B)a specified pension plan in circumstances to which subsection (21) applied,(c)the payment is received by the taxpayer or the taxpayer’s spouse or common-law partner in a particular taxation year that is(i)the year in which the premiums were paid by the taxpayer,(ii)the year in which a notice of assessment for the taxation year referred to in subparagraph 146(8.2)(c)(i) was sent to the taxpayer, or(iii)the year immediately following the year referred to in subparagraph 146(8.2)(c)(i) or 146(8.2)(c)(ii), and(d)the payment is included in computing the taxpayer’s income for the particular year,the payment (except to the extent that it is a prescribed withdrawal) may be deducted in computing the taxpayer’s income for the particular year unless it is reasonable to consider that(e)the taxpayer did not reasonably expect that the full amount of the premiums would be deductible in the taxation year in which the premiums were paid or in the immediately preceding taxation year, and(f)the taxpayer paid all or any portion of the premiums with the intent of receiving a payment that, but for this paragraph and paragraph 146(8.2)(e), would be deductible under this subsection.Marginal note:Premium deemed not paid(8.21)Where a taxpayer or the taxpayer’s spouse or common-law partner has, at any time in a taxation year, received a payment from a registered retirement savings plan or a registered retirement income fund in respect of all or any portion of a premium paid by the taxpayer to a registered retirement savings plan and the payment has been deducted under subsection 146(8.2) in computing the taxpayer’s income for the year, the premium or portion thereof, as the case may be, shall,(a)for the purposes of determining, after that time, the amount that may be deducted under subsection 146(5) or 146(5.1) in computing the taxpayer’s income for the year or a preceding taxation year, and(b)for the purposes of subsections 146(8.3) and 146.3(5.1) after that time, in the case of a payment received by the taxpayer,be deemed not to have been a premium paid by the taxpayer to a registered retirement savings plan.Marginal note:Spousal or common-law partner payments(8.3)Where at any time in a taxation year a particular amount in respect of a registered retirement savings plan that is a spousal or common-law partner plan in relation to a taxpayer is required by reason of subsection (8) or paragraph (12)(b) to be included in computing the income of the taxpayer’s spouse or common-law partner before the plan matures or as a payment in full or partial commutation of a retirement income under the plan and the taxpayer is not living separate and apart from the taxpayer’s spouse or common-law partner at that time by reason of the breakdown of their marriage or common-law partnership, there shall be included at that time in computing the taxpayer’s income for the year an amount equal to the lesser of(a)the total of all amounts each of which is a premium paid by the taxpayer in the year or in one of the two immediately preceding taxation years to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant at the time the premium was paid, and(b)the particular amount.Marginal note:Ordering(8.5)Where a taxpayer has paid more than one premium described in subsection 146(8.3), such a premium or part thereof paid by the taxpayer at any time shall be deemed to have been included in computing the taxpayer’s income by virtue of that subsection before premiums or parts thereof paid by the taxpayer after that time.Marginal note:Spouse’s income(8.6)Where, in respect of an amount required at any time in a taxation year to be included in computing the income of a taxpayer’s spouse or common-law partner, all or part of a premium has by reason of subsection 146(8.3) been included in computing the taxpayer’s income for the year, the following rules apply:(a)the premium or part thereof, as the case may be, shall, for the purposes of subsections 146(8.3) and 146.3(5.1) after that time, be deemed not to have been a premium paid to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant; and(b)an amount equal to the premium or part thereof, as the case may be, may be deducted in computing the income of the spouse or common-law partner for the year.Marginal note:Where s. (8.3) does not apply(8.7)Subsection 146(8.3) does not apply(a)in respect of a taxpayer at any time during the year in which the taxpayer died;(b)in respect of a taxpayer where either the taxpayer or the taxpayer’s spouse or common-law partner is a non-resident at the particular time referred to in that subsection;(c)in respect of amounts paid out of or under a plan referred to in subsection 146(12) as an “amended plan” to which paragraph 146(12)(a) applied before May 26, 1976;(d)to any payment that is received in full or partial commutation of a registered retirement income fund or a registered retirement savings plan and in respect of which a deduction was made under paragraph 60(l) if, where the deduction was in respect of the acquisition of an annuity, the terms of the annuity provide that it cannot be commuted, and it is not commuted, in whole or in part within 3 years after the acquisition; or(e)in respect of an amount that is deemed by subsection 146(8.8) to have been received by an annuitant under a registered retirement savings plan immediately before the annuitant’s death.Marginal note:Effect of death where person other than spouse becomes entitled(8.8)Where the annuitant under a registered retirement savings plan (other than a plan that had matured before June 30, 1978) dies after June 29, 1978, the annuitant shall be deemed to have received, immediately before the annuitant’s death, an amount as a benefit out of or under a registered retirement savings plan equal to the amount, if any, by which(a)the fair market value of all the property of the plan at the time of deathexceeds(b)where the annuitant died after the maturity of the plan, the fair market value at the time of the death of the portion of the property described in paragraph 146(8.8)(a) that, as a consequence of the death, becomes receivable by a person who was the annuitant’s spouse or common-law partner immediately before the death, or would become so receivable should that person survive throughout all guaranteed terms contained in the plan.Marginal note:Idem(8.9)There may be deducted from the amount deemed by subsection 146(8.8) to have been received by an annuitant as a benefit out of or under a registered retirement savings plan an amount not exceeding the amount determined by the formulaA × [1 - ((B + C - D) / (B + C))]whereAis the total of(a)all refunds of premiums in respect of the plan,(b)all tax-paid amounts in respect of the plan paid to individuals who, otherwise than because of subsection 146(8.1), received refunds of premiums in respect of the plan, and(c)all amounts each of which is a tax-paid amount in respect of the plan paid to the legal representative of the annuitant under the plan, to the extent that the legal representative would have been entitled to designate that tax-paid amount under subsection 146(8.1) if tax-paid amounts were not excluded in determining refunds of premiums;Bis the fair market value of the property of the plan at the particular time that is the later of(a)the end of the first calendar year that begins after the death of the annuitant, and(b)the time immediately after the last time that any refund of premiums in respect of the plan is paid out of or under the plan;Cis the total of all amounts paid out of or under the plan after the death of the annuitant and before the particular time; andDis the lesser of(a)the fair market value of the property of the plan at the time of the annuitant’s death, and(b)the sum of the values of B and C in respect of the plan.Marginal note:Amounts deemed receivable by spouse or common-law partner(8.91)Where, as a consequence of the death of an annuitant after the maturity of the annuitant’s registered retirement savings plan, the annuitant’s legal representative has become entitled to receive amounts out of or under the plan for the benefit of the spouse or common-law partner of the deceased and the legal representative and the spouse or common-law partner file with the Minister a joint election in prescribed form,(a)the spouse or common-law partner shall be deemed to have become the annuitant under the plan as a consequence of the annuitant’s death; and(b)those amounts shall be deemed to be receivable by the spouse or common-law partner and, when paid, to be received by the spouse or common-law partner as a benefit under the plan, and not to be received by any other person.Marginal note:Deduction for post-death reduction in value(8.92)If the annuitant under a registered retirement savings plan dies before the maturity of the plan, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the plan have been paid, by the formulaA – BwhereAis the total of all amounts each of which is(a)the amount deemed by subsection (8.8) to have been received by the annuitant as a benefit out of or under the plan,(b)an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer as a benefit out of or under the plan and included, because of subsection (8), in computing the taxpayer’s income, or(c)a tax-paid amount in respect of the plan; andBis the total of all amounts paid out of or under the plan after the death of the annuitant.Marginal note:Subsection (8.92) not applicable(8.93)Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (8.92) in respect of a registered retirement savings plan, that subsection does not apply if(a)at any time after the death of the annuitant, a trust governed by the plan held a non-qualified investment; or(b)the last payment out of or under the plan was made after the end of the year following the year in which the annuitant died.Marginal note:Where disposition of property by trust(9)Where in a taxation year a trust governed by a registered retirement savings plan(a)disposes of property for a consideration less than the fair market value of the property at the time of the disposition, or for no consideration, or(b)acquires property for a consideration greater than the fair market value of the property at the time of the acquisition,the difference between the fair market value and the consideration, if any, shall be included in computing the income for the taxation year of the annuitant under the plan.Marginal note:Property used as security for loan(10)If at any time in a taxation year a trust governed by a registered retirement savings plan 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 taxpayer who is the annuitant under the plan at that time.Marginal note:Where tax payable(10.1)Where in a taxation year a trust governed by a registered retirement savings plan holds a property that is a non-qualified investment,(a)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 non-qualified investments and no capital gains or losses other than from dispositions of non-qualified investments; and(b)for the purposes of paragraph 146(10.1)(a),(i)incomeincludes 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”.(11) and (11.1)[Repealed, 2011, c. 24, s. 45]Marginal note:Change in plan after registration(12)Where, on any day after a retirement savings plan has been accepted by the Minister for registration for the purposes of this Act, the plan is revised or amended or a new plan is substituted for it, and the plan as revised or amended or the new plan, as the case may be (in this subsection referred to as the “amended plan”), does not comply with the requirements of this section for its acceptance by the Minister for registration for the purposes of this Act, subject to subsection 146(13.1), the following rules apply:(a)the amended plan shall be deemed, for the purposes of this Act, not to be a registered retirement savings plan; and(b)the taxpayer who was the annuitant under the plan before it became an amended plan shall, in computing the taxpayer’s income for the taxation year that includes that day, include as income received at that time an amount equal to the fair market value of all the property of the plan immediately before that time.Marginal note:Idem(13)For the purposes of subsection 146(12), an arrangement under which a right or obligation under a retirement savings plan is released or extinguished either wholly or in part and either in exchange or substitution for any right or obligation, or otherwise (other than an arrangement the sole object and legal effect of which is to revise or amend the plan) or under which payment of any amount by way of loan or otherwise is made on the security of a right under a retirement savings plan, shall be deemed to be a new plan substituted for that retirement savings plan.(13.1)[Repealed, 2011, c. 24, s. 45](13.2) and (13.3)[Repealed, 2007, c. 29, s. 17]Marginal note:Premiums paid in taxation year(14)Where any amount has been paid in a taxation year as a premium under a retirement savings plan that was, at the end of that taxation year, a registered retirement savings plan, the amount so paid shall be deemed, for the purposes of this Act, to have been paid in that year as a premium under a registered retirement savings plan.Marginal note:Plan not registered at end of year entered into(15)Notwithstanding anything in this section, where an amount is received in a taxation year as a benefit under a registered retirement savings plan that was not, at the end of the year in which the plan was entered into, a registered retirement savings plan, such part, if any, of the amount so received as may be prescribed shall be deemed, for the purposes of this Act, to have been received in the taxation year otherwise than as a benefit or other payment under a registered retirement savings plan.Marginal note:Transfer of funds(16)Notwithstanding any other provision in this section, a registered retirement savings plan may at any time be revised or amended to provide for the payment or transfer before the maturity of the plan, on behalf of the annuitant under the plan (in this subsection referred to as the “transferor”), of any property thereunder by the issuer thereof(a)to a registered pension plan for the benefit of the transferor or to a registered retirement savings plan or registered retirement income fund under which the transferor is the annuitant,(a.1)to a licensed annuities provider to acquire an advanced life deferred annuity for the benefit of the transferor,(a.2)to a FHSA for the benefit of the transferor, if subsection (8.3) would not apply to an amount in respect of the property in the case that the property was instead received by the transferor as a benefit out of or under the registered retirement savings plan, or(b)to a registered retirement savings plan or registered retirement income fund under which the spouse or common-law partner or former spouse or common-law partner of the transferor is the annuitant, where the transferor and the transferor’s spouse or common-law partner or former spouse or common-law partner are living separate and apart and the payment or transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property between the transferor and the transferor’s spouse or common-law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership,and, where there has been such a payment or transfer of such property on behalf of the transferor before the maturity of the plan,(c)the amount of the payment or transfer shall not, solely because of the payment or transfer, be included in computing the income of the transferor or the transferor’s spouse or common-law partner or former spouse or common-law partner,(d)no deduction may be made under subsection (5), (5.1) or (8.2) or section 8, 60 or 146.6 in respect of the payment or transfer in computing the income of any taxpayer, and(e)where the payment or transfer was made to a registered retirement savings plan, for the purposes of subsection 146(8.2), the amount of the payment or transfer shall be deemed not to be a premium paid to that plan by the taxpayer.Marginal note:Credited or added amount deemed not received(20)Where(a)an amount is credited or added to a deposit with a depositary referred to in subparagraph (b)(iii) of the definitionretirement savings planin subsection 146(1) as interest or income in respect of the deposit,(b)the deposit is a registered retirement savings plan at the time the amount is credited or added to the deposit, and(c)during the calendar year in which the amount is credited or added or during the preceding calendar year, the annuitant under the plan was alive,the amount shall be deemed not to be received by the annuitant or any other person solely because of the crediting or adding.Marginal note:Specified pension plan(21)Where(a)an amount (other than an amount that is part of a series of periodic payments) is transferred directly from an individual’s account under a specified pension plan(i)to a registered retirement savings plan or registered retirement income fund under which the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, is the annuitant,(ii)to acquire from a licensed annuities provider an annuity that would be described in subparagraph 60(l)(ii) if the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, were the taxpayer referred to in that subparagraph and if that subparagraph were read without reference to clause 60(l)(ii)(B), or(iii)to an account under the plan of a spouse or common-law partner or former spouse or common-law partner of the individual, and(b)if the transfer is in respect of a spouse or common-law partner or former spouse or common-law partner of the individual,(i)the individual and the spouse or common-law partner or former spouse or common-law partner are living separate and apart and the transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership, or(ii)the amount is transferred as a consequence of the individual’s death,the following rules apply:(c)the amount shall not, solely because of the transfer, be included because of subparagraph 56(1)(a)(i) in computing the income of a taxpayer, and(d)no deduction may be made under any provision of this Act in respect of the transfer in computing the income of a taxpayer.Marginal note:Specified pension plan — contribution(21.1)For the purposes of this section, paragraphs 18(11)(b), 60(j), (j.1) and (l), 74.5(12)(a), 146.01(3)(a) and 146.02(3)(a) and Parts X.1 and X.5, and for the purposes of section 214.1 of theIncome Tax Regulations, a contribution made by an individual to an account of the individual, or of the individual’s spouse or common-law partner, under a specified pension plan is deemed to be a premium paid by the individual to a registered retirement savings plan under which the individual, or the individual’s spouse or common-law partner, as the case may be, is the annuitant.Marginal note:Specified pension plan — account(21.2)For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), subparagraph (a)(i) of the definitionexcluded right or interestin subsection 128.1(10), paragraph (b) of the definitionexcluded premiumin subsection 146.01(1), paragraph (c) of the definitionexcluded premiumin subsection 146.02(1), subsections 146.3(14) and 147(19), section 147.3 and paragraphs 147.5(21)(c) and 212(1)(j.1) and (m) and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.Marginal note:Specified pension plan — payment(21.3)For the purposes of subsections (8.3) to (8.7), a payment received by an individual from a specified pension plan is deemed to be a payment received by the individual from a registered retirement savings plan.Marginal note:Deemed payment of RRSP premiums(22)If the Minister so directs,(a)except for the purposes of subparagraphs (5)(a)(iv.1) and (5.1)(a)(iv), an amount paid by an individual in a taxation year (other than an amount paid in the first 60 days of the year) as a premium is deemed to have been paid at the beginning of the year and not at the time it was actually paid;(b)all or part of the amount may be designated in writing by the individual for the purpose of paragraph 60(j), (j.1) or (l) or subsection 146.01(3) or 146.02(3); and(c)the designation is deemed to have been made in the individual’s return of income for the preceding taxation year or in a prescribed form filed with that return, as the case may be.
(a)until such time after maturity of the plan as an individual’s spouse or common-law partner becomes entitled, as a consequence of the individual’s death, to receive benefits to be paid out of or under the plan, the individual referred to in paragraph (a) or (b) of the definitionretirement savings planin this subsection for whom, under a retirement savings plan, a retirement income is to be provided, and(b)thereafter, the spouse or common-law partner referred to in paragraph (a); (rentier)
(a)the portion thereof received by a person other than the annuitant that can reasonably be regarded as part of the amount included in computing the income of an annuitant by virtue of subsections 146(8.8) and 146(8.9),(b)an amount received by the person with whom the annuitant has the contract or arrangement described in the definitionretirement savings planin this subsection as a premium under the plan,(b.1)an amount in respect of which the annuitant pays a tax under Part XI.01, unless the tax is waived, cancelled or refunded,(c)an amount, or part thereof, received in respect of the income of the trust under the plan for a taxation year for which the trust was not exempt from tax by virtue of paragraph 146(4)(c), and(c.1)a tax-paid amount described in paragraph (b) of the definitiontax-paid amountin this subsection that relates to interest or another amount included in computing income otherwise than because of this section
(d)in accordance with the terms of the plan,(e)resulting from an amendment to or modification of the plan, or(f)resulting from the termination of the plan; (prestation)
(a)the taxpayer’s income (other than an amount described in paragraph 12(1)(z)) for a period in the year throughout which the taxpayer was resident in Canada from(i)an office or employment, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2),(ii)a business carried on by the taxpayer either alone or as a partner actively engaged in the business, or(iii)property, where the income is derived from the rental of real or immovable property or from royalties in respect of a work or invention of which the taxpayer was the author or inventor,(b)an amount included under paragraph 56(1)(b), (c.2), (g) or (o) or subparagraph 56(1)(r)(v) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada,(b.01)an amount included under paragraph 56(1)(n) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada in connection with a program that consists primarily of research and does not lead to a diploma from a college or a collège d’enseignement général et professionnel, or a bachelor, masters, doctoral or equivalent degree,(b.1)an amount received by the taxpayer in the year and at a time when the taxpayer is resident in Canada as, on account of, in lieu of payment of or in satisfaction of, a disability pension under theCanada Pension Planor a provincial pension plan as defined in section 3 of that Act,(b.2)the taxpayer’s qualifying performance income (as defined in subsection 143.1(1)) that is deemed by paragraph 143.1(1.2)(c) to be income of an amateur athlete trust for the year,(c)the taxpayer’s income (other than an amount described in paragraph 12(1)(z)) for a period in the year throughout which the taxpayer was not resident in Canada from(i)the duties of an office or employment performed by the taxpayer in Canada, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2), or(ii)a business carried on by the taxpayer in Canada, either alone or as a partner actively engaged in the businessexcept to the extent that the income 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, or(d)in the case of a taxpayer described in subsection 115(2), the total that would be determined under paragraph 115(2)(e) in respect of the taxpayer for the year if(i)that paragraph were read without reference to subparagraph 115(2)(e)(iv), and(ii)subparagraph 115(2)(e)(ii) were read without any reference therein to paragraph 56(1)(n),except any part thereof included in the total determined under this definition by reason of paragraph (c) or 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,
(i)an office or employment, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2),(ii)a business carried on by the taxpayer either alone or as a partner actively engaged in the business, or(iii)property, where the income is derived from the rental of real or immovable property or from royalties in respect of a work or invention of which the taxpayer was the author or inventor,
(i)the duties of an office or employment performed by the taxpayer in Canada, determined without reference to paragraphs 8(1)(c), 8(1)(m) and 8(1)(m.2), or(ii)a business carried on by the taxpayer in Canada, either alone or as a partner actively engaged in the business
(i)that paragraph were read without reference to subparagraph 115(2)(e)(iv), and(ii)subparagraph 115(2)(e)(ii) were read without any reference therein to paragraph 56(1)(n),
(e)the taxpayer’s loss for a period in the year throughout which the taxpayer was resident in Canada from(i)a business carried on by the taxpayer, either alone or as a partner actively engaged in the business, or(ii)property, where the loss is sustained from the rental of real or immovable property,(f)an amount deductible under paragraph 60(b), or deducted under paragraph 60(c.2), in computing the taxpayer’s income for the year, or(g)the taxpayer’s loss for a period in the year throughout which the taxpayer was not resident in Canada from a business carried on by the taxpayer in Canada, either alone or as a partner actively engaged in the business,(h)[Repealed, 2016, c. 12, s. 52]
(i)a business carried on by the taxpayer, either alone or as a partner actively engaged in the business, or(ii)property, where the loss is sustained from the rental of real or immovable property,
(a)as consideration for any contract referred to in paragraph (a) of the definitionretirement savings planto pay a retirement income, or(b)as a contribution or deposit referred to in paragraph (b) of that definition for the purpose stated in that paragraph
(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 registered retirement savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”,(b)[Repealed, 2007, c. 29, s. 17](c)an annuity described in the definitionretirement incomein respect of the annuitant under the plan, if purchased from a licensed annuities provider,(c.1)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.2)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 annuitant under the plan (in this definition referred to as the “RRSP annuitant”),(iv)the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age,(v)either(A)the periodic payments are payable for the life of the RRSP annuitant and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of(I)the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and(II)the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or(B)the periodic payments are payable for a term equal to(I)90 years minus the age described in subclause (I), or(II)90 years minus the age described in subclause (II), and(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 146(3)(b)(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(d)such other investments as may be prescribed by regulations of the Governor in Council made on the recommendation of the Minister of Finance; (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 annuitant under the plan (in this definition referred to as the “RRSP annuitant”),(iv)the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age,(v)either(A)the periodic payments are payable for the life of the RRSP annuitant and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of(I)the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and(II)the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or(B)the periodic payments are payable for a term equal to(I)90 years minus the age described in subclause (I), or(II)90 years minus the age described in subclause (II), and(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 146(3)(b)(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)the periodic payments are payable for the life of the RRSP annuitant and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of(I)the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and(II)the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or(B)the periodic payments are payable for a term equal to(I)90 years minus the age described in subclause (I), or(II)90 years minus the age described in subclause (II), and
(I)the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and(II)the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or
(I)90 years minus the age described in subclause (I), or(II)90 years minus the age described in subclause (II), and
(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 146(3)(b)(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)the lesser of the RRSP dollar limit for the year and 18% of the taxpayer’s earned income for the preceding taxation year
(b)the taxpayer’s pension adjustment for the preceding taxation year in respect of an employer, or(c)a prescribed amount in respect of the taxpayer for the year,
(a)for years other than 1996 and 2003, the money purchase limit for the preceding year,(b)for 1996, $13,500, and(c)for 2003, $14,500; (plafond REER)
(a)to an individual who was, immediately before the death, a spouse or common-law partner of the annuitant, where the annuitant died before the maturity of the plan, or(b)to a child or grandchild of the annuitant who was, immediately before the death, financially dependent on the annuitant for support; (remboursement de primes)
(a)an annuity commencing at maturity, and with or without a guaranteed term commencing at maturity, not exceeding the term referred to in paragraph (b), or, in the case of a plan entered into before March 14, 1957, not exceeding 20 years, payable to(i)the annuitant for the annuitant’s life, or(ii)the annuitant for the lives, jointly, of the annuitant and the annuitant’s spouse and to the survivor of them for the survivor’s life, or(b)an annuity commencing at maturity, payable to the annuitant, or to the annuitant for the annuitant’s life and to the spouse after the annuitant’s death, for a term of years equal to 90 minus either(i)the age in whole years of the annuitant at the maturity of the plan, or(ii)where the annuitant’s spouse is younger than the annuitant and the annuitant so elects, the age in whole years of the spouse at the maturity of the plan,issued by a person described in the definitionretirement savings planin this subsection with whom an individual may have a contract or arrangement that is a retirement savings plan,
(i)the annuitant for the annuitant’s life, or(ii)the annuitant for the lives, jointly, of the annuitant and the annuitant’s spouse and to the survivor of them for the survivor’s life, or
(i)the age in whole years of the annuitant at the maturity of the plan, or(ii)where the annuitant’s spouse is younger than the annuitant and the annuitant so elects, the age in whole years of the spouse at the maturity of the plan,
(a)a contract between an individual and a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, under which, in consideration of payment by the individual or the individual’s spouse or common-law partner of any periodic or other amount as consideration under the contract, a retirement income commencing at maturity is to be provided for the individual, or(b)an arrangement under which payment is made by an individual or the individual’s spouse or common-law partner(i)in trust to 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, of any periodic or other amount as a contribution under the trust,(ii)to a corporation approved by the Governor in Council for the purposes of this section that is licensed or otherwise authorized under the laws of Canada or a province to issue investment contracts providing for the payment to or to the credit of the holder thereof of a fixed or determinable amount at maturity, of any periodic or other amount as a contribution under such a contract between the individual and that corporation, or(iii)as a deposit with a branch or office, in Canada, of(A)a person who 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,(in this section referred to as a “depositary”)to be used, invested or otherwise applied by that corporation or that depositary, as the case may be, for the purpose of providing for the individual, commencing at maturity, a retirement income; (régime d’épargne-retraite)
(i)in trust to 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, of any periodic or other amount as a contribution under the trust,(ii)to a corporation approved by the Governor in Council for the purposes of this section that is licensed or otherwise authorized under the laws of Canada or a province to issue investment contracts providing for the payment to or to the credit of the holder thereof of a fixed or determinable amount at maturity, of any periodic or other amount as a contribution under such a contract between the individual and that corporation, or(iii)as a deposit with a branch or office, in Canada, of(A)a person who 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,(in this section referred to as a “depositary”)
(A)a person who 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 registered retirement savings plan(i)to which the taxpayer has, at a time when the taxpayer’s spouse or common-law partner was the annuitant under the plan, paid a premium, or(ii)that has received a payment out of or a transfer from a registered retirement savings plan or a registered retirement income fund that was a spousal or common-law partner plan in relation to the taxpayer, or(b)a registered retirement income fund that has received a payment out of or a transfer from a spousal or common-law partner plan in relation to the taxpayer; (régime au profit de l’époux ou du conjoint de fait)
(i)to which the taxpayer has, at a time when the taxpayer’s spouse or common-law partner was the annuitant under the plan, paid a premium, or(ii)that has received a payment out of or a transfer from a registered retirement savings plan or a registered retirement income fund that was a spousal or common-law partner plan in relation to the taxpayer, or
(a)an amount paid to the person in respect of the amount that would, if this Act were read without reference to subsection 104(6), be income of a trust governed by the plan for a taxation year for which the trust was subject to tax because of paragraph 146(4)(c), or(b)where(i)the plan is a deposit with a depositary referred to in clause (b)(iii)(B) of the definitionretirement savings planin this subsection, and(ii)an amount is received at any time out of or under the plan by the person,the portion of the amount that can reasonably be considered to relate to interest or another amount in respect of the deposit that was required to be included in computing the income of any person (other than the annuitant) otherwise than because of this section; (montant libéré d’impôt)
(i)the plan is a deposit with a depositary referred to in clause (b)(iii)(B) of the definitionretirement savings planin this subsection, and(ii)an amount is received at any time out of or under the plan by the person,
(a)for taxation years ending before 1991, nil, and(b)for taxation years that end after 1990, the amount, which can be positive or negative, determined by the formulaA + B + R - (C + D)whereAis the taxpayer’s unused RRSP deduction room at the end of the preceding taxation year,Bis the amount, if any, by which(i)the lesser of the RRSP dollar limit for the year and 18% of the taxpayer’s earned income for the preceding taxation yearexceeds the total of all amounts each of which is(ii)the taxpayer’s pension adjustment for the preceding taxation year in respect of an employer, or(iii)a prescribed amount in respect of the taxpayer for the year,Cis the taxpayer’s net past service pension adjustment for the year,Dis the total of all amounts each of which is(i)an amount deducted by the taxpayer under any of subsections (5) to (5.2), in computing the taxpayer’s income for the year,(ii)an amount deducted by the taxpayer under paragraph 10 of Article XVIII of theCanada-United States Tax Conventionsigned at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year,(iii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer, or(iv)the amount, if any, by which the taxpayer’s exempt-income contribution amount (as defined in subsection 147.5(1)) for the year exceeds the taxpayer’s unused non-deductible PRPP room (as defined in subsection 147.5(1)) at the end of the preceding taxation year, andRis the taxpayer’s total pension adjustment reversal for the year. (déductions inutilisées au titre des REER)
(i)the lesser of the RRSP dollar limit for the year and 18% of the taxpayer’s earned income for the preceding taxation year
(ii)the taxpayer’s pension adjustment for the preceding taxation year in respect of an employer, or(iii)a prescribed amount in respect of the taxpayer for the year,
(i)an amount deducted by the taxpayer under any of subsections (5) to (5.2), in computing the taxpayer’s income for the year,(ii)an amount deducted by the taxpayer under paragraph 10 of Article XVIII of theCanada-United States Tax Conventionsigned at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year,(iii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer, or(iv)the amount, if any, by which the taxpayer’s exempt-income contribution amount (as defined in subsection 147.5(1)) for the year exceeds the taxpayer’s unused non-deductible PRPP room (as defined in subsection 147.5(1)) at the end of the preceding taxation year, and
(a)the plan does not provide for the payment of any benefit before maturity except(i)a refund of premiums, and(ii)a payment to the annuitant;(b)the plan does not provide for the payment of any benefit after maturity except(i)by way of retirement income to the annuitant,(ii)to the annuitant in full or partial commutation of retirement income under the plan, and(iii)in respect of a commutation referred to in paragraph 146(2)(c.2);(b.1)the plan does not provide for a payment to the annuitant of a retirement income except by way of equal annual or more frequent periodic payments until such time as there is a payment in full or partial commutation of the retirement income and, where that commutation is partial, equal annual or more frequent periodic payments thereafter;(b.2)the plan does not provide for periodic payments in a year under an annuity after the death of the first annuitant, the total of which exceeds the total of the payments under the annuity in a year before that death;(b.3)the plan does not provide for the payment of any premium after maturity;(b.4)the plan does not provide for maturity after the end of the year in which the annuitant attains 71 years of age;(c)the plan provides that retirement income under the plan may not be assigned in whole or in part;(c.1)notwithstanding paragraph 146(2)(a), the plan permits the payment of an amount to a taxpayer where the amount is paid to reduce the amount of tax otherwise payable under Part X.1 by the taxpayer;(c.2)the plan requires the commutation of each annuity payable thereunder that would otherwise become payable to a person other than an annuitant under the plan;(c.3)the plan, where it involves a depositary, includes provisions stipulating that(i)the depositary has no right of offset as regards the property held under the plan in connection with any debt or obligation owing to the depositary, and(ii)the property held under the plan cannot be pledged, assigned or in any way alienated as security for a loan or for any purpose other than that of providing for the annuitant, commencing at maturity, a retirement income; and(c.4)[Repealed, 2011, c. 24, s. 45](d)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 refund of premiums, and(ii)a payment to the annuitant;
(i)by way of retirement income to the annuitant,(ii)to the annuitant in full or partial commutation of retirement income under the plan, and(iii)in respect of a commutation referred to in paragraph 146(2)(c.2);
(i)the depositary has no right of offset as regards the property held under the plan in connection with any debt or obligation owing to the depositary, and(ii)the property held under the plan cannot be pledged, assigned or in any way alienated as security for a loan or for any purpose other than that of providing for the annuitant, commencing at maturity, a retirement income; and
(a)provides for the payment of a benefit after maturity by way of dividend;(b)provides for any annual or more frequent periodic amount payable(i)to the annuitant referred to in subparagraph (a)(ii) of the definitionretirement incomein subsection 146(1) by way of an annuity described in paragraph (a) of that definition to be reduced, in the event of the death of the annuitant’s spouse or common-law partner during the lifetime of the annuitant, in such manner as to provide for the payment of equal annual or more frequent periodic amounts throughout the lifetime of the annuitant thereafter,(ii)to any person by way of an annuity, to be reduced if a pension becomes payable to that person under theOld Age Security Act, by an annual or other periodic amount not exceeding the amount payable to that person in that period under that Act,(iii)to any person by way of an annuity, to be increased or reduced depending on the increase or reduction in the value of a specified group of assets constituting the assets of a separate and distinct account or fund maintained in respect of a variable annuities business by a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada that business,(iii.1)to any person by way of an annuity under a contract that provides for the increase or reduction of the annuity in accordance only with a change in the interest rate on which the annuity is based, if the interest rate, as increased or reduced, equals or approximates a generally available Canadian market interest rate,(iv)that may be adjusted annually to reflect(A)in whole or in part increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(B)increases at a rate specified in the annuity contract, not exceeding 4% per annum, or(v)to the annuitant by way of an annuity to be increased annually to the extent the amount or rate of return that would have been earned on a pool of investment assets (available for purchase by the public and specified in the annuity contract) exceeds an amount or rate specified in the plan and provides that no other increase may be made in the amount payable;(d)provides for the payment of any amount after the death of an annuitant thereunder;(e)is adjoined to a contract or other arrangement that is not a retirement savings plan; or(f)contains such other terms and provisions, not inconsistent with this section, as are authorized or permitted by regulations of the Governor in Council made on the recommendation of the Minister of Finance.
(i)to the annuitant referred to in subparagraph (a)(ii) of the definitionretirement incomein subsection 146(1) by way of an annuity described in paragraph (a) of that definition to be reduced, in the event of the death of the annuitant’s spouse or common-law partner during the lifetime of the annuitant, in such manner as to provide for the payment of equal annual or more frequent periodic amounts throughout the lifetime of the annuitant thereafter,(ii)to any person by way of an annuity, to be reduced if a pension becomes payable to that person under theOld Age Security Act, by an annual or other periodic amount not exceeding the amount payable to that person in that period under that Act,(iii)to any person by way of an annuity, to be increased or reduced depending on the increase or reduction in the value of a specified group of assets constituting the assets of a separate and distinct account or fund maintained in respect of a variable annuities business by a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada that business,(iii.1)to any person by way of an annuity under a contract that provides for the increase or reduction of the annuity in accordance only with a change in the interest rate on which the annuity is based, if the interest rate, as increased or reduced, equals or approximates a generally available Canadian market interest rate,(iv)that may be adjusted annually to reflect(A)in whole or in part increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(B)increases at a rate specified in the annuity contract, not exceeding 4% per annum, or(v)to the annuitant by way of an annuity to be increased annually to the extent the amount or rate of return that would have been earned on a pool of investment assets (available for purchase by the public and specified in the annuity contract) exceeds an amount or rate specified in the plan and provides that no other increase may be made in the amount payable;
(A)in whole or in part increases in the Consumer Price Index, as published by Statistics Canada under the authority of theStatistics Act, or(B)increases at a rate specified in the annuity contract, not exceeding 4% per annum, or
(a)if the trust has borrowed money (other than money used in carrying on a business) in the year or has, after June 18, 1971, borrowed money (other than money used in carrying on a business) that it has not repaid before the commencement of the year, tax is payable under this Part by the trust on its taxable income for the year;(b)in any case not described in paragraph 146(4)(a), if the trust has carried on any business or businesses in the year, tax is payable under this Part by the trust on the amount, if any, by which(i)the amount that its taxable income for the year would be if it had no incomes or losses from sources other than from that business or those businesses, as the case may be,exceeds(ii)such portion of the amount determined under subparagraph 146(4)(b)(i) in respect of the trust for the year as can reasonably be considered to be income from, or from the disposition of, qualified investments for the trust; and(c)if the last annuitant under the plan has died, tax is payable under this Part by the trust on its taxable income for each year after the year following the year in which the last annuitant died.
(i)the amount that its taxable income for the year would be if it had no incomes or losses from sources other than from that business or those businesses, as the case may be,
(ii)such portion of the amount determined under subparagraph 146(4)(b)(i) in respect of the trust for the year as can reasonably be considered to be income from, or from the disposition of, qualified investments for the trust; and
(a)the amount, if any, by which the total of all amounts each of which is a premium paid by the taxpayer after 1990 and on or before the day that is 60 days after the end of the year under a registered retirement savings plan under which the taxpayer was the annuitant at the time the premium was paid, other than the portion, if any, of the premium(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j), 60(j.1) or 60(l),(iii)in respect of which the taxpayer received a payment that was deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year,(iii.1)that was an exempt-income contribution amount (as defined in subsection 147.5(1)) for any taxation year,(iv)that was deductible under subsection 146(6.1) in computing the taxpayer’s income for any taxation year or(iv.1)that would be considered to be withdrawn by the taxpayer as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paidexceeds(v)the amount, if any, by which(A)the total of all amounts deducted under subsection 147.3(13.1) in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(B)the total of all amounts, in respect of transfers occurring before 1991 from registered pension plans, deemed by paragraph 147.3(10)(b) or 147.3(10)(c) to be a premium paid by the taxpayer to a registered retirement savings plan, and(b)the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all contributions made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.
(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j), 60(j.1) or 60(l),(iii)in respect of which the taxpayer received a payment that was deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year,(iii.1)that was an exempt-income contribution amount (as defined in subsection 147.5(1)) for any taxation year,(iv)that was deductible under subsection 146(6.1) in computing the taxpayer’s income for any taxation year or(iv.1)that would be considered to be withdrawn by the taxpayer as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paid
(v)the amount, if any, by which(A)the total of all amounts deducted under subsection 147.3(13.1) in computing the taxpayer’s income for the year or a preceding taxation yearexceeds(B)the total of all amounts, in respect of transfers occurring before 1991 from registered pension plans, deemed by paragraph 147.3(10)(b) or 147.3(10)(c) to be a premium paid by the taxpayer to a registered retirement savings plan, and
(A)the total of all amounts deducted under subsection 147.3(13.1) in computing the taxpayer’s income for the year or a preceding taxation year
(B)the total of all amounts, in respect of transfers occurring before 1991 from registered pension plans, deemed by paragraph 147.3(10)(b) or 147.3(10)(c) to be a premium paid by the taxpayer to a registered retirement savings plan, and
(a)the total of all amounts each of which is a premium paid by the taxpayer after 1990 and on or before the day that is 60 days after the end of the year under a registered retirement savings plan under which the taxpayer’s spouse or common-law partner (or, where the taxpayer died in the year or within 60 days after the end of the year, an individual who was the taxpayer’s spouse or common-law partner immediately before the death) was the annuitant at the time the premium was paid, other than the portion, if any, of the premium(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j.2),(iii)in respect of which the taxpayer or the taxpayer’s spouse or common-law partner has received a payment that has been deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year, or(iv)that would be considered to be withdrawn by the taxpayer’s spouse or common-law partner as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paid, and(b)the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all amounts each of which is(i)the amount deducted under subsection (5) in computing the taxpayer’s income for the year, or(ii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.
(i)that was deducted in computing the taxpayer’s income for a preceding taxation year,(ii)that was designated for any taxation year for the purposes of paragraph 60(j.2),(iii)in respect of which the taxpayer or the taxpayer’s spouse or common-law partner has received a payment that has been deducted under subsection 146(8.2) in computing the taxpayer’s income for a preceding taxation year, or(iv)that would be considered to be withdrawn by the taxpayer’s spouse or common-law partner as an eligible amount (as defined in subsection 146.01(1) or 146.02(1)) less than 90 days after it was paid, if earnings in respect of a registered retirement savings plan were considered to be withdrawn before premiums paid under that plan and premiums were considered to be withdrawn in the order in which they were paid, and
(i)the amount deducted under subsection (5) in computing the taxpayer’s income for the year, or(ii)a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.
(a)the prescribed amount that would have been determined for the purpose of paragraph 147.3(4)(c) if subsection 8517(3.01) of the Regulations had applied in respect of the transfer, and(b)the amount of the taxpayer’s entitlement to benefits under the provision commuted in connection with the transfer;
(a)a registered pension plan is amended or administered in such a manner as to terminate, suspend or delay(i)the membership of an individual in the plan for the individual’s 1990 taxation year,(ii)contributions under the plan by or for the benefit of the individual in respect of the year, or(iii)the accrual of retirement benefits under the plan for the individual in respect of the year, or(b)a deferred profit sharing plan is amended or administered in such a manner as to terminate, suspend or delay contributions under the plan for the year in respect of an individual,
(i)the membership of an individual in the plan for the individual’s 1990 taxation year,(ii)contributions under the plan by or for the benefit of the individual in respect of the year, or(iii)the accrual of retirement benefits under the plan for the individual in respect of the year, or
(a)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
(b)the amount so included in computing the income of the taxpayer in consequence of the trust’s using the property, or permitting it to be used, as security for the loan.
(a)all or any portion of the premiums paid in a taxation year by a taxpayer to one or more registered retirement savings plans under which the taxpayer or the taxpayer’s spouse or common-law partner was the annuitant was not deducted in computing the taxpayer’s income for any taxation year,(b)the taxpayer or the taxpayer’s spouse or common-law partner can reasonably be regarded as having received a payment from a registered retirement savings plan or a registered retirement income fund in respect of such portion of the undeducted premiums as(i)was not paid by way of a transfer of an amount from a registered pension plan to a registered retirement savings plan,(ii)was not paid by way of a transfer of an amount from a deferred profit sharing plan to a registered retirement savings plan in accordance with subsection 147(19), and(iii)was not paid by way of a transfer of an amount to a registered retirement savings plan from(A)a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or(B)a specified pension plan in circumstances to which subsection (21) applied,(c)the payment is received by the taxpayer or the taxpayer’s spouse or common-law partner in a particular taxation year that is(i)the year in which the premiums were paid by the taxpayer,(ii)the year in which a notice of assessment for the taxation year referred to in subparagraph 146(8.2)(c)(i) was sent to the taxpayer, or(iii)the year immediately following the year referred to in subparagraph 146(8.2)(c)(i) or 146(8.2)(c)(ii), and(d)the payment is included in computing the taxpayer’s income for the particular year,
(i)was not paid by way of a transfer of an amount from a registered pension plan to a registered retirement savings plan,(ii)was not paid by way of a transfer of an amount from a deferred profit sharing plan to a registered retirement savings plan in accordance with subsection 147(19), and(iii)was not paid by way of a transfer of an amount to a registered retirement savings plan from(A)a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or(B)a specified pension plan in circumstances to which subsection (21) applied,
(A)a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or(B)a specified pension plan in circumstances to which subsection (21) applied,
(i)the year in which the premiums were paid by the taxpayer,(ii)the year in which a notice of assessment for the taxation year referred to in subparagraph 146(8.2)(c)(i) was sent to the taxpayer, or(iii)the year immediately following the year referred to in subparagraph 146(8.2)(c)(i) or 146(8.2)(c)(ii), and
(e)the taxpayer did not reasonably expect that the full amount of the premiums would be deductible in the taxation year in which the premiums were paid or in the immediately preceding taxation year, and(f)the taxpayer paid all or any portion of the premiums with the intent of receiving a payment that, but for this paragraph and paragraph 146(8.2)(e), would be deductible under this subsection.
(a)for the purposes of determining, after that time, the amount that may be deducted under subsection 146(5) or 146(5.1) in computing the taxpayer’s income for the year or a preceding taxation year, and(b)for the purposes of subsections 146(8.3) and 146.3(5.1) after that time, in the case of a payment received by the taxpayer,
(a)the total of all amounts each of which is a premium paid by the taxpayer in the year or in one of the two immediately preceding taxation years to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant at the time the premium was paid, and(b)the particular amount.
(a)the premium or part thereof, as the case may be, shall, for the purposes of subsections 146(8.3) and 146.3(5.1) after that time, be deemed not to have been a premium paid to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant; and(b)an amount equal to the premium or part thereof, as the case may be, may be deducted in computing the income of the spouse or common-law partner for the year.
(a)in respect of a taxpayer at any time during the year in which the taxpayer died;(b)in respect of a taxpayer where either the taxpayer or the taxpayer’s spouse or common-law partner is a non-resident at the particular time referred to in that subsection;(c)in respect of amounts paid out of or under a plan referred to in subsection 146(12) as an “amended plan” to which paragraph 146(12)(a) applied before May 26, 1976;(d)to any payment that is received in full or partial commutation of a registered retirement income fund or a registered retirement savings plan and in respect of which a deduction was made under paragraph 60(l) if, where the deduction was in respect of the acquisition of an annuity, the terms of the annuity provide that it cannot be commuted, and it is not commuted, in whole or in part within 3 years after the acquisition; or(e)in respect of an amount that is deemed by subsection 146(8.8) to have been received by an annuitant under a registered retirement savings plan immediately before the annuitant’s death.
(a)the fair market value of all the property of the plan at the time of death
(b)where the annuitant died after the maturity of the plan, the fair market value at the time of the death of the portion of the property described in paragraph 146(8.8)(a) that, as a consequence of the death, becomes receivable by a person who was the annuitant’s spouse or common-law partner immediately before the death, or would become so receivable should that person survive throughout all guaranteed terms contained in the plan.
(a)all refunds of premiums in respect of the plan,(b)all tax-paid amounts in respect of the plan paid to individuals who, otherwise than because of subsection 146(8.1), received refunds of premiums in respect of the plan, and(c)all amounts each of which is a tax-paid amount in respect of the plan paid to the legal representative of the annuitant under the plan, to the extent that the legal representative would have been entitled to designate that tax-paid amount under subsection 146(8.1) if tax-paid amounts were not excluded in determining refunds of premiums;
(a)the end of the first calendar year that begins after the death of the annuitant, and(b)the time immediately after the last time that any refund of premiums in respect of the plan is paid out of or under the plan;
(a)the fair market value of the property of the plan at the time of the annuitant’s death, and(b)the sum of the values of B and C in respect of the plan.
(a)the spouse or common-law partner shall be deemed to have become the annuitant under the plan as a consequence of the annuitant’s death; and(b)those amounts shall be deemed to be receivable by the spouse or common-law partner and, when paid, to be received by the spouse or common-law partner as a benefit under the plan, and not to be received by any other person.
(a)the amount deemed by subsection (8.8) to have been received by the annuitant as a benefit out of or under the plan,(b)an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer as a benefit out of or under the plan and included, because of subsection (8), in computing the taxpayer’s income, or(c)a tax-paid amount in respect of the plan; and
(a)at any time after the death of the annuitant, a trust governed by the plan held a non-qualified investment; or(b)the last payment out of or under the plan was made after the end of the year following the year in which the annuitant died.
(a)disposes of property for a consideration less than the fair market value of the property at the time of the disposition, or for no consideration, or(b)acquires property for a consideration greater than the fair market value of the property at the time of the acquisition,
(a)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 non-qualified investments and no capital gains or losses other than from dispositions of non-qualified investments; and(b)for the purposes of paragraph 146(10.1)(a),(i)incomeincludes 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)incomeincludes 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)the amended plan shall be deemed, for the purposes of this Act, not to be a registered retirement savings plan; and(b)the taxpayer who was the annuitant under the plan before it became an amended plan shall, in computing the taxpayer’s income for the taxation year that includes that day, include as income received at that time an amount equal to the fair market value of all the property of the plan immediately before that time.
(a)to a registered pension plan for the benefit of the transferor or to a registered retirement savings plan or registered retirement income fund under which the transferor is the annuitant,(a.1)to a licensed annuities provider to acquire an advanced life deferred annuity for the benefit of the transferor,(a.2)to a FHSA for the benefit of the transferor, if subsection (8.3) would not apply to an amount in respect of the property in the case that the property was instead received by the transferor as a benefit out of or under the registered retirement savings plan, or(b)to a registered retirement savings plan or registered retirement income fund under which the spouse or common-law partner or former spouse or common-law partner of the transferor is the annuitant, where the transferor and the transferor’s spouse or common-law partner or former spouse or common-law partner are living separate and apart and the payment or transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property between the transferor and the transferor’s spouse or common-law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership,
(c)the amount of the payment or transfer shall not, solely because of the payment or transfer, be included in computing the income of the transferor or the transferor’s spouse or common-law partner or former spouse or common-law partner,(d)no deduction may be made under subsection (5), (5.1) or (8.2) or section 8, 60 or 146.6 in respect of the payment or transfer in computing the income of any taxpayer, and(e)where the payment or transfer was made to a registered retirement savings plan, for the purposes of subsection 146(8.2), the amount of the payment or transfer shall be deemed not to be a premium paid to that plan by the taxpayer.
(a)an amount is credited or added to a deposit with a depositary referred to in subparagraph (b)(iii) of the definitionretirement savings planin subsection 146(1) as interest or income in respect of the deposit,(b)the deposit is a registered retirement savings plan at the time the amount is credited or added to the deposit, and(c)during the calendar year in which the amount is credited or added or during the preceding calendar year, the annuitant under the plan was alive,
(a)an amount (other than an amount that is part of a series of periodic payments) is transferred directly from an individual’s account under a specified pension plan(i)to a registered retirement savings plan or registered retirement income fund under which the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, is the annuitant,(ii)to acquire from a licensed annuities provider an annuity that would be described in subparagraph 60(l)(ii) if the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, were the taxpayer referred to in that subparagraph and if that subparagraph were read without reference to clause 60(l)(ii)(B), or(iii)to an account under the plan of a spouse or common-law partner or former spouse or common-law partner of the individual, and(b)if the transfer is in respect of a spouse or common-law partner or former spouse or common-law partner of the individual,(i)the individual and the spouse or common-law partner or former spouse or common-law partner are living separate and apart and the transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership, or(ii)the amount is transferred as a consequence of the individual’s death,
(i)to a registered retirement savings plan or registered retirement income fund under which the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, is the annuitant,(ii)to acquire from a licensed annuities provider an annuity that would be described in subparagraph 60(l)(ii) if the individual, or a spouse or common-law partner or former spouse or common-law partner of the individual, were the taxpayer referred to in that subparagraph and if that subparagraph were read without reference to clause 60(l)(ii)(B), or(iii)to an account under the plan of a spouse or common-law partner or former spouse or common-law partner of the individual, and
(i)the individual and the spouse or common-law partner or former spouse or common-law partner are living separate and apart and the transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership, or(ii)the amount is transferred as a consequence of the individual’s death,
(c)the amount shall not, solely because of the transfer, be included because of subparagraph 56(1)(a)(i) in computing the income of a taxpayer, and(d)no deduction may be made under any provision of this Act in respect of the transfer in computing the income of a taxpayer.
(a)except for the purposes of subparagraphs (5)(a)(iv.1) and (5.1)(a)(iv), an amount paid by an individual in a taxation year (other than an amount paid in the first 60 days of the year) as a premium is deemed to have been paid at the beginning of the year and not at the time it was actually paid;(b)all or part of the amount may be designated in writing by the individual for the purpose of paragraph 60(j), (j.1) or (l) or subsection 146.01(3) or 146.02(3); and(c)the designation is deemed to have been made in the individual’s return of income for the preceding taxation year or in a prescribed form filed with that return, as the case may be.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1461994, c. 7, Sch