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

Section 336r4 Disposition versions

2019-06-19

336R4. For the purposes of sections 336R2 to 336R11, where the continuance of annuity payments under a contract depends in whole or in part on the survival of an individual, the following rules apply:

(a)  the aggregate of the payments expected to be made under the contract is

i.  in the case of a contract that provides for equal payments and does not provide for a guaranteed period of payment, to be equal to the product obtained by multiplying the aggregate of the annuity payments expected to be received in a year under the contract by the complete expectations of life determined

(1)  using the table of mortality known as the 1971 Individual Annuity Mortality Table as published in Volume XXIII of the Transactions of the Society of Actuaries, if the annuity rates in respect of the contract were fixed and determined before 1 January 2017 and annuity payments under the contract commenced before that date or, on 31 December 2016, the contract would be a prescribed annuity contract within the meaning of section 92.11R17 if section 92.11R17 were read without reference to its paragraph a and the contract cannot be terminated other than on the death of an individual on whose life payments under the contract are contingent, and

(2)  in any other case, using the table of mortality known as the Annuity 2000 Basic Table as published in the Transactions of Society of Actuaries, 1995–96 Reports, and

ii.  in any other case, to be computed in accordance with subparagraph i with the necessary modifications;

(b)  the age of the individual on a particular date as of which a computation is being made is

i.  if the life insured was determined by the insurer that issued the contract to be a substandard life at the time the contract was issued and the table of mortality referred to in subparagraph 2 of subparagraph i of paragraph a applies to determine the total of the payments expected to be made under the contract, the age that is equal to the total of the age used for the purpose of determining the annuity rate under the policy at the date of issue of the contract and the number determined by subtracting the calendar year in which the contract was issued from the calendar year in which the particular date occurs, and

ii.  in any other case, determined by subtracting the calendar year of the individual’s birth from the calendar year in which the particular date occurs; and

(c)  if, in the event of the death of the individual before the annual payments total a stated amount, the contract provides that the unpaid balance of the stated amount is to be paid in a lump sum or instalments, then for the purpose of determining the expected term of the contract, the contract is deemed to provide for the continuance of the payments under the contract for a minimum term certain equal to the nearest whole number of years required to complete the payment of the stated amount.

s. 336R7; O.C. 1981-80, s. 336R7; R.R.Q., 1981, c. I-3, r. 1, s. 336R7; O.C. 2962-82, s. 34; O.C. 500-83, s. 34; O.C. 1633-96, s. 6; O.C. 134-2009, s. 1; S.Q. 2019, c. 14, s. 638.

2012-09-01

336R4. For the purposes of sections 336R2 to 336R11, where the continuance of annuity payments under a contract depends, in whole or in part, on the survival of an individual, the aggregate of the payments expected to be made under the contract is,

(a)  in the case of a contract that provides for equal payments and does not provide for a guaranteed period of payment, equal to the product of the multiplication of the aggregate of the annuity payments deemed to be received in a year under the contract by the life expectancies predicted in the table entitled “1971 Individual Annuity Mortality Table”, and published in Volume XXIII of “Transactions of the Society of Actuaries”; or

(b)  in any other case, computed in accordance with paragraph a, with the necessary modifications.

s. 336R7; O.C. 1981-80, s. 336R7; R.R.Q., 1981, c. I-3, r. 1, s. 336R7; O.C. 2962-82, s. 34; O.C. 500-83, s. 34; O.C. 1633-96, s. 6; O.C. 134-2009, s. 1.