I-3 - Taxation Act

Section 961.1.5.0.1 Disposition versions

2009-05-15

961.1.5.0.1. The amount to which paragraph c of section 961.1.5 refers in respect of a retirement income fund is equal to zero for the year in which the arrangement relating to the fund is made and, for each subsequent year, to the amount determined by the formula

(A × B) + C.

In the formula provided for in the first paragraph,

(a)  A is the fair market value of all properties held in connection with the fund at the beginning of the year, other than annuity contracts held by a trust governed by the fund that, at the beginning of the year, are not referred to in paragraph b.1 of the definition of “qualified investment” in subsection 1 of section 146.3 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  B is

i.  where the first annuitant under the fund elected in respect of the fund under subparagraph ii of paragraph c of section 961.1.5, as it read before 1 January 1992, or under the first paragraph of section 961.4, as it read before 1 January 1986, to use the age of another individual, the prescribed factor for the year in respect of the other individual,

ii.  where subparagraph i does not apply and the first annuitant under the fund so elects before any payment has been made under the fund by the carrier, the prescribed factor for the year in respect of an individual who is the spouse of the first annuitant at the time of the election, and

iii.  in any other case, the prescribed factor for the year in respect of the first annuitant under the fund; and

(c)  C is, where the fund governs a trust, the aggregate of all amounts each of which is

i.  a periodic payment under an annuity contract held by the trust at the beginning of the year, other than an annuity contract referred to at the beginning of the year in paragraph b.1 of the definition of “qualified investment” in subsection 1 of section 146.3 of the Income Tax Act, that is paid to the trust in the year, or

ii.  if the periodic payment under an annuity contract described in subparagraph i is not made to the trust because the trust disposed of the right to that payment in the year, a reasonable estimate of that payment on the assumption that the annuity contract has been held by the trust throughout the year and no rights under the contract were disposed of in the year.

2000, c. 5, s. 216; 2009, c. 5, s. 385.

2006-03-01

961.1.5.0.1. The amount to which paragraph c of section 961.1.5 refers in respect of a retirement income fund for a year is the amount determined by the formula

(A × B) + C.

In the formula provided for in the first paragraph,

(a)  A is the fair market value of all properties held in connection with the fund at the beginning of the year, other than annuity contracts held by a trust governed by the fund that, at the beginning of the year, are not referred to in paragraph b.1 of the definition of “qualified investment” in subsection 1 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

(b)  B is

i.  where the first annuitant under the fund elected in respect of the fund under subparagraph ii of paragraph c of section 961.1.5, as it read before 1 January 1992, or under the first paragraph of section 961.4, as it read before 1 January 1986, to use the age of another individual, the prescribed factor for the year in respect of the other individual,

ii.  where subparagraph i does not apply and the first annuitant under the fund so elects before any payment has been made under the fund by the carrier, the prescribed factor for the year in respect of an individual who is the spouse of the first annuitant at the time of the election, and

iii.  in any other case, the prescribed factor for the year in respect of the first annuitant under the fund; and

(c)  C is, where the fund governs a trust, the aggregate of all amounts each of which is

i.  a periodic payment under an annuity contract held by the trust at the beginning of the year, other than an annuity contract referred to at the beginning of the year in paragraph b.1 of the definition of “qualified investment” in subsection 1 of section 146.3 of the Income Tax Act, that is paid to the trust in the year, or

ii.  if the periodic payment under an annuity contract described in subparagraph i is not made to the trust because the trust disposed of the right to that payment in the year, a reasonable estimate of that payment on the assumption that the annuity contract has been held by the trust throughout the year and no rights under the contract were disposed of in the year.

2000, c. 5, s. 216.