I-3 - Taxation Act

Section 322 Disposition versions

2006-03-01

322. (1)  In determining the amount that shall be included in respect of payments he receives in a taxation year under contracts entered into before 26 May 1932 with the Government of Canada or under annuity contracts like those provided in the Government Annuities Act (Revised Statutes of Canada, 1970, chapter G-6), entered into before such date with the government of a province or a corporation incorporated or licensed to carry on an annuities business in Canada, the taxpayer may deduct from the aggregate of the amounts he has received the lesser of:

(a)  $5,000; and

(b)  the aggregate of the amounts that would have been received if such contracts had remained in force on the conditions existing immediately before 25 June 1940, without the exercise of any option or contractual right to increase the amount of the annuity by the payment of an additional sum or premium unless such additional sum or premium had been paid before such date.

(2)  The taxpayer may also deduct the lesser of $1,200 and the aggregate contemplated in paragraph b of subsection 1 if the contracts were entered into after 25 May 1932 and before 25 June 1940.

1972, c. 23, s. 296; 1997, c. 3, s. 71; 1997, c. 14, s. 61.