I-3 - Taxation Act

Section 1029.8.142 Disposition versions

2021-06-04

1029.8.142. If an education savings incentive has been received by a trust under section 1029.8.128, the portion of an educational assistance payment made to a beneficiary under the registered education savings plan that is attributable to the education savings incentive is equal to the lesser of

(a)  the amount determined by the formula

A × B/C; and

(b)  the amount by which $3,600 exceeds the aggregate of all amounts each of which is an amount determined under this section in respect of an educational assistance payment made previously by the promoter to the beneficiary under the plan.

In the formula in subparagraph a of the first paragraph,

(a)  A is the amount of the educational assistance payment made to the beneficiary under the plan;

(b)  B is the balance of the plan’s education savings incentive account immediately before the educational assistance payment is made;

(c)  C is the amount determined, in respect of the educational assistance payment, under subsection 2.2 of section 10 of the Canada Education Savings Regulations made under the Canada Education Savings Act (S.C. 2004, c. 26);

(d)  (subparagraph repealed);

(e)  (subparagraph repealed);

(f)  (subparagraph repealed);

(g)  (subparagraph repealed);

(h)  (subparagraph repealed).

For the purposes of the first paragraph, the portion of an educational assistance payment made to a beneficiary under the plan that is attributable to the education savings incentive is deemed to be equal to zero if

(a)  the beneficiary under the plan is not resident in Québec at the time the educational assistance payment is made; or

(b)  in the case where the plan allows more than one beneficiary at any one time, the beneficiary under the plan became a beneficiary under the plan after reaching 21 years of age, unless, before reaching that age, the beneficiary was a beneficiary under another registered education savings plan that allowed more than one beneficiary at any one time.

2009, c. 5, s. 480; 2011, c. 6, s. 206; 2021, c. 18, s. 141.

2011-06-06

1029.8.142. If an education savings incentive has been received by a trust under section 1029.8.128, the portion of an educational assistance payment made to a beneficiary under the registered education savings plan that is attributable to the education savings incentive is equal to

(a)  if there is accumulated income in the plan at the time the educational assistance payment is made, the lesser of

i.  the amount determined by the formula

A × B/(C - D - E), and

ii.  the amount by which $3,600 exceeds the aggregate of all amounts each of which is an amount determined under subparagraph a or b in respect of an educational assistance payment made previously to the beneficiary under the plan; or

(b)  if there is no accumulated income in the plan at the time the educational assistance payment is made, the lesser of

i.  the amount determined by the formula

A × B/(B + F + G + H), and

ii.  the amount by which $3,600 exceeds the aggregate of all amounts each of which is an amount determined under subparagraph a or b in respect of an educational assistance payment made previously to the beneficiary under the plan.

In the formulas in subparagraph i of subparagraphs a and b of the first paragraph,

(a)  A is the amount of the educational assistance payment made to the beneficiary under the plan;

(b)  B is the balance of the plan’s education savings incentive account immediately before the educational assistance payment is made;

(c)  C is the fair market value of the properties held by the trust governed by the plan, immediately before the educational assistance payment is made or, if applicable, on the prior date agreed on in the education savings incentive agreement applicable to the plan;

(d)  D is the aggregate of the contributions that were made to the plan before the educational assistance payment is made and that have not been withdrawn;

(e)  E is the total of the balance of each CLB account of the other beneficiaries under the plan, immediately before the educational assistance payment is made;

(f)  F is the balance of the CLB account of the beneficiary under the plan, immediately before the educational assistance payment is made;

(g)  G is the balance of the plan’s grant account, immediately before the educational assistance payment is made; and

(h)  H is the aggregate of all amounts paid into the plan under a designated provincial program.

For the purposes of the first paragraph, the portion of an educational assistance payment made to a beneficiary under the plan that is attributable to the education savings incentive is deemed to be equal to zero if

(a)  the beneficiary under the plan is not resident in Québec at the time the educational assistance payment is made; or

(b)  in the case where the plan allows more than one beneficiary at any one time, the beneficiary under the plan became a beneficiary under the plan after reaching 21 years of age, unless, before reaching that age, the beneficiary was a beneficiary under another registered education savings plan that allowed more than one beneficiary at any one time.

2009, c. 5, s. 480; 2011, c. 6, s. 206.

2009-05-15