I-3 - Taxation Act

Section 935.4 Disposition versions

2006-03-01

935.4. An individual shall include in computing the income of the individual for a particular taxation year included in a particular participation period of the individual the amount determined by the formula

[(A − B − C) / (15 − D)] − E.

For the purposes of the formula in the first paragraph,

(a)  A is

i.  an amount equal to zero where

(1)  the individual died or ceased to be resident in Canada in the particular year, or

(2)  the completion date in respect of an eligible amount received by the individual was in the particular year; and

ii.  in any other case, the aggregate of all eligible amounts received by the individual in preceding taxation years included in the particular participation period;

(b)  B is

i.  if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, an amount equal to zero, and

ii.  in any other case, the aggregate of all amounts each of which is designated under section 935.3 by the individual for a preceding taxation year included in the particular participation period;

(c)  C is the aggregate of all amounts each of which is an amount included under this section or section 935.5 in computing the income of the individual for a preceding taxation year included in the particular participation period;

(d)  D is the lesser of 14 and the number of taxation years of the individual ending in the period beginning on the following dates and ending at the beginning of the particular year:

i.  where the completion date in respect of an eligible amount received by the individual was before 1 January 1995, 1 January 1995, and

ii.  in any other case, 1 January of the first calendar year beginning after the completion date in respect of an eligible amount received by the individual; and

(e)  E is

i.  (subparagraph repealed);

ii.  if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, the aggregate of all amounts each of which is designated under section 935.3 by the individual for the particular year or a preceding taxation year included in the particular participation period, and

iii.  in any other case, the amount designated under section 935.3 by the individual for the particular year.

1994, c. 22, s. 290; 1995, c. 49, s. 205; 1996, c. 39, s. 240; 2001, c. 53, s. 197.