I-3 - Taxation Act

Section 965.0.18 Disposition versions

2009-05-15

965.0.18. (Repealed).

1998, c. 16, s. 214; 2000, c. 5, s. 225; 2009, c. 5, s. 388.

2006-03-01

965.0.18. For the purposes of this Part, where, under circumstances referred to in paragraph a of section 2.3, an individual acquired before 1 January 1997 an interest in an annuity contract in full or partial satisfaction of the individual’s entitlement to benefits under a registered pension plan, and, for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), subsection 4 of section 147.4 of that Act applies in respect of the individual owing to the fact that payment of the annuity has not begun by the end of a particular year, the following rules apply:

(a)  the interest in the annuity contract is deemed not to exist after the particular year;

(b)  the individual is deemed to have received immediately after the particular year the payment of an amount under the registered pension plan equal to the fair market value of the interest in the annuity contract at the end of the particular year;

(c)  the individual is deemed to have acquired immediately after the particular year an interest in the annuity contract as a separate annuity contract issued immediately after the particular year at a cost equal to the amount referred to in paragraph b; and

(d)  the separate contract is deemed not to have been issued and acquired pursuant to or under a registered pension plan.

1998, c. 16, s. 214; 2000, c. 5, s. 225.