I-3 - Taxation Act

Section 346.0.2 Disposition versions

2006-03-01

346.0.2. No individual may deduct an amount under section 346.0.1 unless the contract under which the individual acquires an income-averaging annuity respecting income from artistic activities is consistent with the standard contract previously approved by the Minister and provides for stipulations consistent with the following provisions:

(a)   the income-averaging annuity respecting income from artistic activities is acquired in consideration for a single payment;

(b)  the income-averaging annuity respecting income from artistic activities is payable, at least once a year or at more frequent periodic intervals, in equal payments sufficient to ensure its full payment over a period not exceeding seven years from the date on which the first payment is made, which payment must be made not later than ten months after the date on which the single payment referred to in paragraph a is made;

(c)  the individual is entitled to request, at any time, the full or partial commutation of the income-averaging annuity respecting income from artistic activities;

(d)  the income-averaging annuity payments respecting income from artistic activities may only be made to the individual or, after the individual’s death, to a person designated by the individual under the contract, the individual’s succession or any of the beneficiaries of the individual’s succession, as the case may be;

(e)  except in case of death, the rights of the individual as annuitant may not be disposed of otherwise than by the redemption or cancellation of the income-averaging annuity respecting income from artistic activities by the debtor; and

(f)  the rights of the individual as annuitant may not be given or transferred as security in any manner whatsoever.

2005, c. 23, s. 50.