I-3 - Taxation Act

Section 965.0.3 Disposition versions

2006-03-01

965.0.3. An individual may deduct, in computing his income for a taxation year ending after 31 December 1990, an amount equal to the aggregate of the following amounts:

(a)  the amounts that, by virtue of paragraph m of subsection 1 of section 8 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), are allowed as a deduction for the year in respect of the individual in computing his income for the purposes of the said Act, to the extent that the said paragraph refers to paragraph a of subsection 4 of section 147.2 of the said Act,

(b)  the least of the following amounts:

i.  the amount described in the second paragraph,

ii.  $5,500, and

iii.  the amount determined by the formula

($5,500 × Y) − Z;

(c)  the lesser of the following amounts:

i.  the amount by which

(1)  the aggregate of all amounts each of which is a contribution, other than an additional voluntary contribution, a contribution prescribed by regulation for the purposes of clause A of subparagraph i of paragraph c of subsection 4 of section 147.2 of the Income Tax Act or a contribution included in the aggregate determined in respect of the individual for the year under subparagraph a of the second paragraph, made by the individual in the year or any preceding taxation year and after 31 December 1962, to a registered pension plan in respect of a particular year before the year 1990, if all or any part of the particular year is included in the individual’s eligible service under the plan, exceeds

(2)  the aggregate of all amounts each of which is an amount deducted, in computing the individual’s income for any preceding taxation year, in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph 1, and

ii.  the amount by which $5,500 exceeds the aggregate of the amounts deducted by reason of paragraphs a and b in computing the individual’s income for the year.

The amount referred to in subparagraph i of subparagraph b of the first paragraph is equal to the amount by which

(a)  the aggregate of all amounts each of which is a contribution, other than an additional voluntary contribution or a contribution prescribed by regulation for the purposes of clause A of subparagraph i of paragraph b of subsection 4 of section 147.2 of the Income Tax Act, made by the individual in the year or any preceding taxation year and after 31 December 1945, to a registered pension plan in respect of a particular year before the year 1990, if all or any part of the particular year is included in the individual’s eligible service under the plan and if

i.  in the case of a contribution that the individual made before 28 March 1988 or was obliged to make under the terms of an agreement in writing entered into before that date, the individual was not a contributor to the plan in the particular year, or

ii.  in any other case, the individual was not a contributor to any registered pension plan in the particular year, exceeds

(b)  the aggregate of all amounts each of which is an amount deducted, in computing the individual’s income for any preceding taxation year, in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph a.

For the purposes of the formula set forth in subparagraph iii of subparagraph b of the first paragraph,

(a)  Y is the number of calendar years before the year 1990 each of which is

i.  a year all or any part of which is included in the individual’s eligible service under a registered pension plan to which the individual has made a contribution that is included in the aggregate determined under subparagraph a of the second paragraph, if the individual was not a contributor to any registered pension plan in that year, or

ii.  a year all or any part of which is included in the individual’s eligible service under a registered pension plan to which the individual has made a contribution before 28 March 1988, or was obliged to make a contribution under the terms of an agreement in writing entered into before that date, that is included in the aggregate determined under subparagraph a of the second paragraph, if the individual was not a contributor to the plan in that year, and

(b)  Z is the aggregate of all amounts each of which is an amount deducted in computing the individual’s income for any preceding taxation year

i.  in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph a of the second paragraph, or

ii.  where the preceding year is before the year 1987, under paragraph c of section 70 to the extent permitted by paragraph b of section 71, as it read for that preceding year, in respect of additional voluntary contributions made in respect of a year that satisfies the conditions specified in subparagraph a.

1991, c. 25, s. 157; 2000, c. 5, s. 221.