I-3 - Taxation Act

Section 890.13 Disposition versions

2006-03-01

890.13. A taxpayer may also deduct in computing his income for a taxation year,

(a)  where an amount in respect of a particular retirement compensation arrangement is required by paragraph a or c of section 890.9 or by section 429 to be included in computing the taxpayer’s income for the year, an amount equal to the lesser of

i.  the aggregate of all amounts in respect of the particular arrangement so required to be included in computing the taxpayer’s income for the year, and

ii.  the amount by which the aggregate of all amounts each of which is an amount deducted under this paragraph or paragraph b in respect of the particular arrangement in computing the taxpayer’s income for a preceding taxation year or an amount transferred in respect of the taxpayer before the end of the year from the particular arrangement to another retirement compensation arrangement in circumstances in which section 890.14 applies, to the extent that the amount would have been deductible under this paragraph in respect of the particular arrangement in computing the taxpayer’s income if it had been received by the taxpayer out of the particular arrangement, is exceeded by the aggregate of all amounts each of which is

(1)  an amount, other than an amount deductible under section 70.2 or transferred to the particular arrangement in circumstances in which section 890.14 applies, contributed under the particular arrangement by the taxpayer while it was a retirement compensation arrangement and before the end of the year,

(2)  an amount transferred in respect of the taxpayer before the end of the year to the particular arrangement from another retirement compensation arrangement in circumstances in which section 890.14 applies, to the extent that the amount would have been deductible under this paragraph in respect of the other arrangement in computing the taxpayer’s income if it had been received by the taxpayer out of the other arrangement,

(3)  an amount paid by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada to acquire an interest in the particular arrangement, or

(4)  an amount that was received or became receivable by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada as proceeds from the disposition of an interest in the particular arrangement; and

(b)  where an amount in respect of a particular retirement compensation arrangement is required by paragraph b of section 890.9 to be included in computing the taxpayer’s income for the year, an amount equal to the lesser of

i.  the aggregate of all amounts in respect of the particular arrangement so required to be included in the taxpayer’s income for the year, and

ii.  the amount by which the aggregate of all amounts each of which is an amount deducted under paragraph a in respect of the particular arrangement in computing the taxpayer’s income for the year or a preceding taxation year, an amount deducted under this paragraph in respect of the particular arrangement in computing the taxpayer’s income for a preceding taxation year or an amount transferred in respect of the taxpayer before the end of the year from the particular arrangement to another retirement compensation arrangement in circumstances in which section 890.14 applies, to the extent that the amount would have been deductible under paragraph a in respect of the particular arrangement in computing the taxpayer’s income if it had been received by the taxpayer out of the other arrangement, is exceeded by the aggregate of all amounts each of which is

(1)  an amount, other than an amount deductible under section 70.2 or transferred to the particular arrangement in circumstances in which section 890.14 applies, contributed under the particular arrangement by the taxpayer while it was a retirement compensation arrangement and before the end of the year,

(2)  an amount transferred in respect of the taxpayer before the end of the year to the particular arrangement from another retirement compensation arrangement in circumstances in which section 890.14 applies, to the extent that the amount would have been deductible under paragraph a in respect of the other arrangement in computing the taxpayer’s income if it had been received by the taxpayer out of the other arrangement, and

(3)  an amount paid by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada to acquire an interest in the particular arrangement.

1989, c. 77, s. 95; 1991, c. 25, s. 176; 1997, c. 14, s. 150; 2000, c. 5, s. 190.