I-3 - Taxation Act

Section 1129.66.5 Disposition versions

2009-05-15

1129.66.5. If a trust governed by a registered education savings plan received an amount deemed under section 1029.8.128 to be an overpayment of its tax payable on account of an increase amount and if, in a calendar year, an individual who is neither the brother nor the sister of the other beneficiaries under the plan becomes a beneficiary under the plan, the trust shall pay, for that year, tax equal to the lesser of

(a)  the balance of the plan’s education savings incentive account immediately before the time the individual becomes a beneficiary; and

(b)  the amount by which the fair market value of the properties held by the trust, immediately before the time the individual becomes a beneficiary, exceeds the aggregate of the balances of the plan’s grant account and CLB accounts immediately before that time.

2009, c. 5, s. 533.