I-3 - Taxation Act

Section 965.0.17.4 Disposition versions

2006-03-01

965.0.17.4. For the purposes of this Part, where an annuity contract, in this section referred to as the “original contract”, to which section 965.0.17.2 or paragraph a of section 2.3 applies is, at any time, replaced by another contract, the following rules apply:

(a)  the other contract is deemed to be the same contract as, and a continuation of, the original contract if the rights provided for under the other contract

i.  are not materially different from those provided for under the original contract, or

ii.  are materially different from those provided for under the original contract only because of an enhancement of benefits that can reasonably be considered to have been provided solely in connection with the demutualization, as defined in section 832.11, of an insurance corporation that is considered for the purposes of sections 832.11 to 832.25 to have been a party to the original contract; and

(b)  in any other case, each individual who has an interest in the original contract immediately before that time is deemed to have received at that time an amount under a pension plan equal to the fair market value of the interest immediately before that time.

2000, c. 5, s. 224; 2001, c. 53, s. 203.