I-3 - Taxation Act

Section 888.3 Disposition versions

2009-05-15

888.3. (Repealed).

1998, c. 16, s. 210; 2009, c. 5, s. 375.

2006-03-01

888.3. Where an amount is paid before 1 January 1997 pursuant to or under a deferred profit sharing plan to acquire for a beneficiary under the plan an annuity described in subparagraph iv of paragraph k of subsection 2 of section 147 of the French text of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) and, for the purposes of that Act, subsection 10.6 of that section 147 applies in respect of the beneficiary owing to the fact that payment of the annuity has not begun by the end of the particular year, the following rules apply:

(a)  the beneficiary is deemed to have disposed of the annuity immediately after the particular year and to have received as proceeds of the disposition an amount equal to the fair market value of the annuity at the end of the particular year;

(b)  the beneficiary is deemed to have acquired immediately after the particular year an interest in the annuity as a separate and newly issued annuity contract at a cost equal to the amount referred to in paragraph a; and

(c)  the contract referred to in paragraph b is deemed not to have been issued and acquired pursuant to or under a deferred profit sharing plan.

1998, c. 16, s. 210.