I-3 - Taxation Act

Section 462.0.1 Disposition versions

2006-03-01

462.0.1. Where at any time a taxpayer disposes of an interest in the taxpayer’s NISA Fund No. 2, an amount equal to the balance in the fund so disposed of is deemed to have been paid out of the fund at that time to the taxpayer except that,

(a)  where the interest is disposed of to the taxpayer’s spouse, former spouse or an individual referred to in subparagraph d of the second paragraph of section 454, as it applies in respect of transfers of property that occurred before 1 January 1993, in settlement of rights arising out of their marriage, on or after the breakdown of the marriage, that amount is not deemed to have been paid to the taxpayer if

i.  the disposition is made under a decree, order or judgment of a competent tribunal or, in the case of a spouse or former spouse, under a written separation agreement, and

ii.  the taxpayer elects in the taxpayer’s fiscal return under this Part for the taxation year in which the property was disposed of to have this paragraph apply to the disposition;

(b)  where the interest is disposed of to a taxable Canadian corporation in a transaction in respect of which section 518 applies, an amount equal to the proceeds of disposition in respect of that interest is deemed to be paid, at that time, to the taxpayer out of the taxpayer’s NISA Fund No. 2.

1994, c. 22, s. 185; 1995, c. 49, s. 236; 1996, c. 39, s. 129; 1997, c. 3, s. 71; 1997, c. 85, s. 78.