I-3 - Taxation Act

Section 467.2 Disposition versions

2009-06-04

467.2. If an amount paid to acquire a qualifying trust annuity with respect to a taxpayer is deductible under paragraph f of section 339 in computing the taxpayer’s income, the following rules apply:

(a)  any amount that is paid out of or under the annuity at a particular time after 31 December 2005 and before the death of the taxpayer is deemed to have been received out of or under the annuity at the particular time by the taxpayer, and not to have been received by another taxpayer; and

(b)  if the taxpayer dies after 31 December 2005,

i.  the taxpayer is deemed to have received, immediately before the taxpayer’s death, an amount out of or under the annuity equal to the fair market value of the annuity at the time of the taxpayer’s death, and

ii.  for the purposes of section 436, the annuity is to be disregarded in determining the fair market value (immediately before the taxpayer’s death) of the taxpayer’s interest in the trust that is the annuitant under the annuity.

2009, c. 15, s. 88.