I-3 - Taxation Act

Section 343 Disposition versions

2006-03-01

343. To be entitled to the deduction provided in section 342, the individual must acquire the income-averaging annuity by

(a)  a single payment described in the second paragraph and made under the terms of a contract

i.  which entitles him to receive, during a period beginning not later than ten months after the date of such payment, either an annuity for life or such annuity with a guaranteed term for a number of years not exceeding the lesser of 15 and the difference between 85 and his age at the time the annuity commences to be paid to him, or an annuity for such guaranteed term; and

ii.  which shall not provide for payments other than the single payment by the individual and the equal annuity payments which must be paid to him annually or at more frequent periodic intervals; or

(b)  a single payment made in respect of his taxation year 1981, other than a single payment contemplated in subparagraph a according to the terms of a contract

i.  providing that all the payments to the individual under the contract must be made before 1 January 1983; and

ii.  providing no other payment than the single payment by the individual and the payments described in subparagraph i.

The single payment contemplated in subparagraph a of the first paragraph is a single payment made

(a)  before 13 November 1981; or

(b)  after 12 November 1981 in accordance with an agreement in writing entered into before 13 November 1981 to make such a payment in respect of his taxation year 1981, or pursuant to an arrangement in writing made before that date to have funds withheld before 1 January 1982 from any of the individual’s remuneration described in paragraph a of section 344 and earned or received before the latter date and to be paid by or on behalf of the individual.

1972, c. 23, s. 312; 1974, c. 18, s. 19; 1984, c. 15, s. 81.