I-3, r. 1 - Regulation respecting the Taxation Act

Section 92.11r18 Disposition versions

2019-02-27

92.11R18. For the purposes of paragraph e of section 92.11R17, the conditions that must be satisfied are:

(a)  subject to the holder’s right to change the frequency and the quantum of the payments to be made in a taxation year under the contract without changing the present value, at the beginning of the year, of those payments, all the payments made under the contract must be equal annuity payments made at regular intervals at least once a year;

(b)  the annuity payments under the contract must continue either for a fixed period, or

i.  where the holder is an individual other than a trust, for the life of the first holder or until the day of the later of the death of the first holder and the death of any of the spouse, brothers and sisters, referred to as “the survivor” in subparagraph c, of the first holder, or

ii.  where the holder is

(1)  a trust described in subparagraph a of the first paragraph of section 653 of the Act and in the second paragraph of that section, called “spouse trust” in this section, for the life of an individual to whom that subparagraph a refers if the individual is entitled to receive all of the income of the trust that arose before the individual’s death,

(2)  a joint spousal trust, until the day of the later of the death of the individual and the death of the beneficiary under the trust who is the individual’s spouse,

(3)  a qualified disability trust, for the life of an individual who is an electing beneficiary of the trust for the taxation year in which the annuity is issued,

(4)  a trust, other than a qualified disability trust or a spouse trust, where the annuity is issued before 24 October 2012, for the life of an individual who is entitled to receive income from the trust, or

(5)  a trust, other than a qualified disability trust or a spouse trust, where the annuity is issued after 23 October 2012, for the life of an individual who is entitled when the contract was first held to receive all of the income of the trust that is an amount received by the trust on or before the death of the individual as an annuity payment;

(c)  where the period during which the annuity payments are to be made is of a guaranteed or fixed duration, the period so guaranteed or fixed cannot exceed 91 years minus the age, when the contract was first held, in whole years of the following individual:

i.  where the holder is not a trust, the individual who is,

(1)  in the case of a joint and last survivor annuity, the younger of the first holder and the survivor,

(2)  in the case of a contract that is held jointly, the younger of the first holders, and

(3)  in any other case, the first holder,

ii.  where the holder is a spouse trust, the individual who is,

(1)  in the case of a joint and last survivor annuity held by a joint spousal trust, the younger of the beneficiaries under the trust who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and

(2)  in the case of an annuity that is not a joint and last survivor annuity, the individual who is entitled to receive all of the income of the trust that arose before the individual’s death,

iii.  where the holder is a qualified disability trust, an individual who is an electing beneficiary of the trust for the taxation year in which the annuity is issued, and

iv.  where the holder is a trust, other than a qualified disability trust or a spouse trust, and the annuity is issued before 1 January 2016, the individual who was the youngest of the beneficiaries under the trust when the contract was first held;

(d)  no loan exists under the contract and the holder’s rights under the contract may be disposed of only,

i.  where the holder is an individual, on the holder’s death,

ii.  where the holder is a spouse trust, other than a joint spousal trust, on the death of the spouse who is entitled to receive all of the income of the trust that arose before the spouse’s death,

iii.  where the holder is a spouse trust that is a joint spousal trust, on the later of the deaths of the beneficiaries under the trust who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and

iv.  where the holder is a testamentary trust other than a spouse trust, and the contract was first held after 31 October 2011, on the earlier of the time at which the trust ceases to be a testamentary trust and the death of the individual referred to in subparagraph ii of subparagraph b or, as the case may be, subparagraph iii or iv of subparagraph c, in respect of the trust; and

(e)  no payment may be made under the contract unless it is permitted by this division.

For the purposes of the first paragraph, “electing beneficiary” and “qualified disability trust” have the meaning assigned by the first paragraph of section 768.2 of the Act.

s. 92.11R4; O.C. 7-87, s. 2; O.C. 1471-91, s. 9; O.C. 134-2009, s. 1; O.C. 1105-2014, s. 2; O.C. 117-2019, s. 7.

2014-12-23

92.11R18. For the purposes of paragraph e of section 92.11R17, the conditions that must be satisfied are:

(a)  subject to the holder’s right to change the frequency and the quantum of the payments to be made in a taxation year under the contract without changing the present value, at the beginning of the year, of those payments, all the payments made under the contract must be equal annuity payments made at regular intervals at least once a year;

(b)  the annuity payments under the contract must continue either for a fixed period, or

i.  where the holder is an individual other than a trust, for the life of the first holder or until the day of the later of the death of the first holder and the death of any of the spouse, brothers and sisters, referred to as “the survivor” in paragraph c, of the first holder, or

ii.  where the holder is

(1)  a trust described in subparagraph a of the first paragraph of section 653 of the Act and in the second paragraph of that section, called “spouse trust” in paragraphs c and d, for the life of an individual to whom that subparagraph a refers if the individual is entitled to receive all of the income of the trust that arose before the individual’s death,

(2)  a joint spousal trust, until the day of the later of the death of the individual and the death of the beneficiary under the trust who is the individual’s spouse,

(3)  a testamentary trust, other than a spouse trust, where the annuity is issued before 24 October 2012, for the life of an individual who is entitled to receive income from the trust, or

(4)  a testamentary trust, other than a spouse trust or a testamentary trust referred to in subparagraph 3, for the life of an individual who was entitled when the contract was first held to receive all of the income of the trust that arose before the individual’s death;

(c)  where the period during which the annuity payments are to be made is of a guaranteed or fixed duration, the period so guaranteed or fixed does not extend beyond the time when the following person would, if the person survived, reach the age of 91:

i.  where the contract provides a joint and last survivor annuity, the first holder or the survivor, whichever is younger,

ii.  where the holder is a spouse trust, the spouse entitled to receive the income of the trust,

iii.  where the holder is a testamentary trust other than a spouse trust, the youngest of the beneficiaries of the trust,

iv.  where the contract is held jointly, the youngest of the first holders, or

v.  in all other cases, the first holder;

(d)  no loan exists under the contract and the holder’s rights under the contract may not be disposed of otherwise than at the holder’s death or, where the holder is a spouse trust, at the death of the spouse entitled to receive the income of the trust;

(e)  no payment may be made under the contract unless it is permitted by this division.

s. 92.11R4; O.C. 7-87, s. 2; O.C. 1471-91, s. 9; O.C. 134-2009, s. 1; O.C. 1105-2014, s. 2.

2012-09-01

92.11R18. For the purposes of paragraph e of section 92.11R17, the conditions that must be satisfied are:

(a)  subject to the holder’s right to change the frequency and the quantum of the payments to be made in a taxation year under the contract without changing the present value, at the beginning of the year, of those payments, all the payments made under the contract must be equal annuity payments made at regular intervals at least once a year;

(b)  the annuity payments under the contract must continue either for a fixed period, or

i.  where the holder is an individual other than a trust, for the life of the first holder or until the day of the later of the death of the first holder and the death of any of the spouse, brothers and sisters, referred to as “the survivor” in paragraph c, of the first holder, or

ii.  where the holder is a trust described in subparagraph a of the first paragraph of section 653 of the Act and in the second paragraph of that section, called “spouse trust” in paragraphs c and d, for the life of the spouse who is entitled to receive the income of the trust;

(c)  where the period during which the annuity payments are to be made is of a guaranteed or fixed duration, the period so guaranteed or fixed does not extend beyond the time when the following person would, if the person survived, reach the age of 91:

i.  where the contract provides a joint and last survivor annuity, the first holder or the survivor, whichever is younger,

ii.  where the holder is a spouse trust, the spouse entitled to receive the income of the trust,

iii.  where the holder is a testamentary trust other than a spouse trust, the youngest of the beneficiaries of the trust,

iv.  where the contract is held jointly, the youngest of the first holders, or

v.  in all other cases, the first holder;

(d)  no loan exists under the contract and the holder’s rights under the contract may not be disposed of otherwise than at the holder’s death or, where the holder is a spouse trust, at the death of the spouse entitled to receive the income of the trust;

(e)  no payment may be made under the contract unless it is permitted by this division.

s. 92.11R4; O.C. 7-87, s. 2; O.C. 1471-91, s. 9; O.C. 134-2009, s. 1.