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(6) Subsection 144(2) of the Act, as
enacted by subsection (1), applies to the
1993 and subsequent taxation years.
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(7) Subsections (2) and (3) apply to the
1992 and subsequent taxation years, except
that a taxpayer may elect that those
subsections not apply to the taxpayer's 1992
taxation year by so notifying the Minister of
National Revenue in writing before the end
of the sixth month after the month in which
this Act is assented to.
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(8) Subsection 144(9) of the Act, as
enacted by subsection (4), applies to the
1992 and subsequent taxation years, except
that a taxpayer may elect that subsection
144(9) of the Act, as enacted by subsection
(4), not apply to the taxpayer's 1992
taxation year by so notifying the Minister of
National Revenue in writing before the end
of the sixth month after the month in which
this Act is assented to.
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69. (1) The portion of the definition ``net
past service pension adjustment'' in
subsection 146(1) of the Act before the
description of G is replaced by the
following:
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``net past
service
pension
adjustment''
« facteur
d'équivalence
pour services
passés net »
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``net past service pension adjustment'' of a
taxpayer for a taxation year means the
positive or negative amount determined by
the formula
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P + Q - G
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P is the total of all amounts each of which
is the taxpayer's past service pension
adjustment for the year in respect of an
employer,
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Q is the total of all amounts each of which
is a prescribed amount in respect of the
taxpayer for the year, and
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(2) Paragraphs (a) and (b) of the
definition ``refund of premiums'' in
subsection 146(1) of the Act are replaced
by the following:
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(a) any amount paid to a spouse of the
annuitant out of or under a registered
retirement savings plan of the annuitant,
where the annuitant died before the
maturity of the plan and that amount was
paid as a consequence of the death, or
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(b) if the annuitant had no spouse at the
time of the annuitant's death, any amount
paid out of or under a registered
retirement savings plan of the annuitant
after the death to a child or grandchild (in
this definition referred to as a
``dependant'') of the annuitant, who was,
at the time of the death, financially
dependent on the annuitant for support,
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(3) Paragraphs 146(4)(b) and (c) of the
Act are replaced by the following:
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(b) in any case not described in
paragraph (a), if the trust has carried on any
business or businesses in the year, tax is
payable under this Part by the trust on the
amount, if any, by which
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(i) the amount that its taxable income for
the year would be if it had no incomes or
losses from sources other than from that
business or those businesses, as the case
may be,
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(ii) such portion of the amount
determined under subparagraph (i) in
respect of the trust for the year as can
reasonably be considered to be income
from, or from the disposition of, qualified
investments for the trust; and
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(c) if the last annuitant under the plan has
died, tax is payable under this Part by the
trust on its taxable income for each year
after the year following the year in which
the last annuitant died.
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(4) The portion of paragraph 146(5)(a) of
the Act after subparagraph (iv) is replaced
by the following:
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(v) the amount, if any, by which
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(A) the total of all amounts deducted
under subsection 147.3(13.1) in
computing the taxpayer's income for
the year or a preceding taxation year
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(B) the total of all amounts, in respect
of transfers occurring before 1991
from registered pension plans, deemed
by paragraph 147.3(10)(b) or (c) to be
a premium paid by the taxpayer to a
registered retirement savings plan, and
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(5) The portion of paragraph 146(5.1)(a)
of the Act before subparagraph (i) is
replaced by the following:
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(a) the total of all amounts each of which is
a premium paid by the taxpayer after 1990
and on or before the day that is 60 days after
the end of the year under a registered
retirement savings plan under which the
taxpayer's spouse (or, where the taxpayer
died in the year or within 60 days after the
end of the year, an individual who was the
taxpayer's spouse immediately before the
death) was the annuitant at the time the
premium was paid, other than the portion,
if any, of the premium
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(6) Paragraph 146(8.2)(b) of the Act is
amended by striking out the word ``and'' at
the end of subparagraph (i), by adding the
word ``and'' at the end of subparagraph (ii)
and by adding the following after
subparagraph (ii):
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(iii) was not paid by way of a transfer of
an amount from a provincial pension plan
prescribed for the purpose of paragraph
60(v) to a registered retirement savings
plan in circumstances to which
subsection (21) applied,
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(7) Paragraph 146(8.8)(b) of the Act is
replaced by the following:
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(b) where the annuitant died after the
maturity of the plan, the fair market value
at the time of the death of the portion of the
property described in paragraph (a) that, as
a consequence of the death, becomes
receivable by a person who was the
annuitant's spouse immediately before the
death, or would become so receivable
should that person survive throughout all
guaranteed terms contained in the plan.
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(8) Subsection 146(8.9) of the Act is
replaced the following:
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| Idem
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(8.9) There may be deducted from the
amount deemed by subsection (8.8) to have
been received by an annuitant as a benefit out
of or under a registered retirement savings
plan an amount not exceeding the amount
determined by the formula
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A x [1 - (B + C - D )]
(B + C)
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where
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A is the total of all refunds of premiums in re
spect of the plan;
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B is the fair market value of the property of
the plan at the particular time that is the lat
er of
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(a) the end of the first calendar year
that begins after the death of the
annuitant, and
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(b) the time immediately after the last
time that any refund of premiums in
respect of the plan is paid out of or
under the plan;
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C is the total of all amounts paid out of or un
der the plan after the death of the annuitant
and before the particular time; and
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D is the lesser of
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(a) the fair market value of the
property of the plan at the time of the
annuitant's death, and
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(b) the sum of the values of B and C in
respect of the plan.
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(9) Subsection 146(20) of the Act is
replaced by the following:
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| Credited or
added amount
deemed not
received
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(20) Where
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(a) an amount is credited or added to a
deposit with a depositary referred to in
subparagraph (b)(iii) of the definition
``retirement savings plan'' in subsection (1)
as interest or income in respect of the
deposit,
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(b) the deposit is a registered retirement
savings plan at the time the amount is
credited or added to the deposit, and
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(c) during the calendar year in which the
amount is credited or added or during the
preceding calendar year, the annuitant
under the plan was alive,
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the amount shall be deemed not to be received
by the annuitant or any other person solely
because of the crediting or adding.
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(10) Section 146 of the Act is amended by
adding the following after subsection (20):
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| Prescribed
provincial
pension plans
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(21) Where an amount (other than an
amount that is part of a series of periodic
payments) is transferred on behalf of a
particular individual directly from a
provincial pension plan prescribed for the
purpose of paragraph 60(v)
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(a) to a registered retirement savings plan or
a registered retirement income fund under
which the particular individual is the
annuitant,
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(b) to a registered retirement savings plan or
registered retirement income fund under
which the spouse or former spouse of the
particular individual is the annuitant, where
the particular individual and the spouse or
former spouse are living separate and apart
and the transfer is made under a decree,
order or judgment of a competent tribunal,
or under a written separation agreement,
relating to a division of property between
the particular individual and the spouse or
former spouse in settlement of rights arising
out of, or on the breakdown of, their
marriage,
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(c) to acquire, from a person licensed or
otherwise authorized under the laws of
Canada or a province to carry on in Canada
an annuities business, an annuity that would
be described in subparagraph 60(l)(ii) if
the particular individual were the taxpayer
referred to therein and if that subparagraph
were read without reference to clause (B)
thereof, or
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(d) to acquire, from a person licensed or
otherwise authorized under the laws of
Canada or a province to carry on in Canada
an annuities business, an annuity that would
be described in subparagraph 60(l)(ii) if
the particular individual's spouse or former
spouse were the taxpayer referred to therein
and if that subparagraph were read without
reference to clause (B) thereof, where the
particular individual and the spouse or
former spouse are living separate and apart
and the transfer is made under a decree,
order or judgment of a competent tribunal,
or under a written separation agreement,
relating to a division of property between
the individual and the spouse or former
spouse in settlement of rights arising out of,
or on the breakdown of, their marriage,
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except where the amount arose as a
consequence of the death of an individual
(other than the particular individual or a
spouse or former spouse of the particular
individual),
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(e) the amount shall not, solely because of
that transfer, be included because of
subparagraph 56(1)(a)(i) in computing the
income of a taxpayer, and
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(f) no deduction may be made under any
provision of this Act in respect of the
transfer in computing the income of a
taxpayer.
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(11) Subsections (1) and (3) apply to the
1993 and subsequent taxation years.
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(12) Subsections (2) and (7) to (9) apply to
deaths occurring after 1992.
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(13) Subsections (4) to (6) apply to the
1992 and subsequent taxation years.
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(14) Subsection (10) applies to transfers
occurring after 1991, except that
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(a) where a taxpayer elects under
subsection 26(10), subsection 146(21) of
the Act, as enacted by subsection (10),
does not apply in respect of transfers
made on behalf of the taxpayer in 1992;
and
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(b) with respect to transfers made in
1992,
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(i) the word ``spouse'', wherever it
appears in subsection 146(21) of the
Act, as enacted by subsection (10), shall
have the meaning assigned by
subsection 146(1.1) of the Act as it read
in its application to that year, and
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(ii) the word ``marriage'' in
paragraphs 146(21)(b) and (d) of the
Act, as enacted by subsection (10), shall
be read as ``marriage or other conjugal
relationship''.
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70. (1) Paragraph (b) of the definition
``excluded premium'' in subsection
146.01(1) of the Act is replaced by the
following:
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(b) was an amount transferred directly
from a registered retirement savings
plan, registered pension plan, registered
retirement income fund, deferred profit
sharing plan or a provincial pension plan
prescribed for the purpose of
paragraph 60(v),
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(2) Subsection (1) applies to the 1992 and
subsequent taxation years.
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71. (1) The definition ``retirement income
fund'' in subsection 146.3(1) of the Act is
replaced by the following:
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``retirement
income fund''
« fonds de
revenue de
retraite »
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``retirement income fund'' means an
arrangement between a carrier and an
annuitant under which, in consideration for
the transfer to the carrier of property, the
carrier undertakes to pay to the annuitant
and, where the annuitant so elects, to the
annuitant's spouse after the annuitant's
death, in each year that begins not later than
the first calendar year after the year in
which the arrangement was entered into one
or more amounts the total of which is not
less than the minimum amount under the
arrangement for the year, but the amount of
any such payment shall not exceed the
value of the property held in connection
with the arrangement immediately before
the time of the payment.
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(2) Subsection 146.3(1) of the Act is
amended by adding the following in
alphabetical order:
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``designated
benefit''
« prestation
désignée »
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``designated benefit'' of an individual in
respect of a registered retirement income
fund means the total of
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(a) such amounts paid out of or under the
fund after the death of the last annuitant
thereunder to the legal representative of
that annuitant
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(i) as would, had they been paid under
the fund to the individual, have been
refunds of premiums (in this paragraph
having the meaning assigned by
subsection 146(1)) if the fund were a
registered retirement savings plan that
had not matured before the death, and
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(ii) as are designated jointly by the
legal representative and the individual
in prescribed form filed with the
Minister, and
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(b) amounts paid out of or under the fund
after the death of the last annuitant
thereunder to the individual that would
be refunds of premiums had the fund
been a registered retirement savings plan
that had not matured before the death;
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(3) Paragraph 146.3(2)(f) of the Act is
amended by striking out the word ``or'' at
the end of subparagraph (v), by adding the
word ``or'' at the end of subparagraph (vi)
and by adding the following after
subparagraph (vi):
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(vii) a provincial pension plan in
circumstances to which subsection
146(21) applies;
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(4) Paragraph 146.3(3)(e) of the Act is
replaced by the following:
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(e) where neither paragraph (a) nor (b)
applies and where paragraph (c) applies, on
the amount, if any, by which
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(i) the amount that its taxable income for
the year would be if it had no incomes or
losses from sources other than from the
business or businesses, as the case may
be,
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(ii) such portion of the amount
determined under subparagraph (i) in
respect of the trust for the year as can
reasonably be considered to be income
from, or from the disposition of, qualified
investments for the trust.
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(5) Subsection 146.3(3.1) of the Act is
replaced by the following:
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| Exception
|
(3.1) Notwithstanding subsection (3), if the
last annuitant under a registered retirement
income fund has died, tax is payable under this
Part by the trust governed by the fund on its
taxable income for each year after the year
following the year in which the last annuitant
under the fund died.
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(6) Subsections 146.3(6) to (6.2) of the Act
are replaced by the following:
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| Where last
annuitant dies
|
(6) Where the last annuitant under a
registered retirement income fund dies, that
annuitant shall be deemed to have received,
immediately before death, an amount out of or
under a registered retirement income fund
equal to the fair market value of the property
of the fund at the time of the death.
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| Designated
benefit
deemed
received
|
(6.1) A designated benefit of an individual
in respect of a registered retirement income
fund that is received by the legal
representative of the last annuitant under the
fund shall be deemed
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(a) to be received by the individual out of or
under the fund at the time it is received by
the legal representative; and
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