Section 146

Table of Contents

Subsection 146(1) - Definitions

Earned Income

Cases

Androwich v. The Queen, 90 DTC 6084 (FCTD), briefly aff'd 93 DTC 5275 (FCA)

Interest on investment income does not fall within the definition of "earned income".

Wood v. The Queen, 85 DTC 5552, [1985] 2 CTC 16 (FCTD)

"Salary or wages" for the purpose of s. 146(1)(c) is defined in s. 248(1) to mean employment income net of the deductions allowed under section 8, such as the employment expense deduction and unemployment insurance premiums.

Words and Phrases
salary or wages

See Also

Goldstein v. The Queen, 96 DTC 1029 (TCC)

The taxpayer's share of the losses of a limited partnership from operating a MURB rental property reduced his earned income pursuant to s. 146(1)(c)(i)(C). Under s. 96(1), sources of loss retained their identity when allocated to a partner, and it would produce an absurdity to interpret the earned income definition as including losses from a direct interest in a MURB but not one held through a partnership.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Estoppel 105

Administrative Policy

10 October 2014 APFF Roundtable, 2014-0538241C6 F - 75(2) and definition of "earned income" in 146(1)

character preservation of s. 75(2) attributed income

When a rental property has been transferred to a trust, is rental income attributed to the transferor under s. 75(2) transformed into trust property income under s. 108(5), so that the "earned income" of the transferor will not be increased for "RRSP deduction limit" purposes? CRA responded (TaxInterpretations translation):

Subsection 108(5) does not have the effect of modifying the application of subsection 75(2)… . [T]he net rental income…preserves its character and the person who had transferred the property must include this income…in his or her return of income … . For purposes of the calculation of the "RRSP deduction limit" of the person subject to subsection 75(2) …the income from the rental property…is included in his or her "earned income"… .

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.6) basis adjustment for denied capital loss (otherwise subject to s. 75(2) attribution) at trust level 202
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) character preservation of attributed income/basis adjustment for denied capital loss at trust level 424

10 July 2013 Internal T.I. 2013-0478851I7 - Earned income for RRSP purposes

income loss payments included

In finding that that income replacement payments to eligible individuals taking part in a rehabilitation or vocational assistance program, and payments of replacement income under a group disability insurance plan, would be earned income, CRA stated that "a former employee can also receive a benefit in respect of an office or employment," so that amounts "included as income from an office or employment under paragraphs 6(1)(f.1) and 6(1)(f)" qualify as "earned income."

3 August 1994 Memorandum 941939 (C.T.O. "Earned Income and Exempt Income for RRSP")

An amount that is exempt from tax under s. 81 cannot be earned income.

24 February 1992 Memorandum (Tax Window, No. 13, p. 19, ¶1618)

A limited partner must deduct her share of the partnership's real estate rental losses in computing earned income.

19 February 1992 Memorandum (Tax Window, No. 16, p. 15, ¶1755)

Royalties included in income under s. 12(1)(g) generally are not earned income for purposes of s. 146(1)(c).

11 December 1990 T.I. (May 1990 Access Letter, ¶1231)

Earned income includes the taxpayer's share of rental income earned by a limited partnership.

Premium

Administrative Policy

3 October 1996 T.I. 962856 (C.T.O. "RRSP Administration & Investment Management Fees")

The payment of investment management fees of an RRSP by the annuitant will be treated (unlike the payment by the annuitant of administration fees) as the payment of a premium to the RRSP.

Qualified Investment

Administrative Policy

1 June 1993 External T.I. 5-930642 -

"Where a RRSP acquires the beneficial ownership (evidenced by an instalment receipt) of shares listed on a prescribed stock exchange, we are of the view that such shares constitute qualified investments for the RRSP and the instalment receipt is not in and by itself a qualified investment for the RRSP."

13 January 1993 T.I. 923286 (November 1993 Access Letter, p. 508, ¶C180-151)

The delisting of a share, the suspension of its trading or the bankruptcy of the corporation generally will not cause the share to cease to be a qualified investment.

25 March 1992 T.I. (Tax Window, No. 18, p. 18, ¶1830)

RC will not consider bankers' acceptances to be qualified investments.

23 January 1992 T.I. (Tax Window, No. 16, p. 15, ¶1714)

Bankers' acceptances are not "bonds, debentures, notes or similar obligations" or other qualified investments.

91 C.R. - Q.40

Stripped Government of Canada bond interest coupons constitute similar obligations and, therefore, qualified investments.

13 June 1991 T.I. (Tax Window, No. 4, p. 29, ¶1304)

Foreign currency acquired by an RRSP in order to acquire foreign currency qualified investments, or on the disposition thereof, or as dividends or interest on such investments, will not itself be considered to be a non-qualified investment provided that it is converted into a qualified investment within a reasonable time (for example, one month).

IT-320R2 "Registered Retirement Savings Plans - Qualified Investments"

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(5) 0

Articles

Singer, "Mortgages with Equity Tickers May Qualify as RRSP Investment", Taxation of Executive Compensation and Retirement, May 1990, p. 283.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(10) 55

Singer, "RRSPs Can Invest in a Wide Range of Fixed Income Securities", Taxation of Executive Compensation and Retirement, May 1990, p. 286.

Singer, "RRSPs Can Invest in a Wide Range of Equities", Taxation of Executive Compensation and Retirement, April 1990, p. 259

Discussion of eligibility of various equity instruments including instalment receipts, unlisted shares, calls and puts.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(9) 53

Refund of Premiums

Administrative Policy

11 July 2016 External T.I. 2015-0592681E5 F - RRIF Death of an annuitant

consequence of death if named as beneficiary in RRSP contract

As part of a background discussion, CRA stated:

One of the conditions for an amount to be considered as a refund of premiums as defined in subsection 146(1) requires that the amount be paid to an individual who was, immediately before the annuitant's death:

• the Spouse if the annuitant died before the maturity of the RRSP,
• a child, or grandchild, of the annuitant, who was financially dependent on the annuitant
(collectively, an "Eligible Recipient".)

A second condition requires that the amount be paid out of or under an RRSP as a consequence of the death of the annuitant under the plan. When an individual is named the beneficiary of the RRSP in the RRSP contract, the CRA considers that the amount so received is paid under an RRSP because of the annuitant’s death. If this person is an Eligible Recipient, the amount will be considered as a refund of premiums, without any further formality.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(1) - Annuitant surviving spouse who has been predesignated can qualify as an RRIF annuitant even if he or she does not receive any annuity payments 243
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.2) deduction for transfer to eligible recipient by surviving spouse 277
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(l) transfer by eligible recipient of payment out of RRIF 267

26 September 2014 Internal T.I. 2014-0525241I7 - 60(l) - Financial Dependence Ward of the Crown

Crown ward not financially dependent on deceased

Individual A is an adult who is mentally and physically infirm and who became a permanent ward of Child and Family Services so that he did not live with his surviving but ailing father. Should Individual A be considered financially dependent on his father at the time of his father's death so that amounts could be transferred from the father's RRSP as a refund of premiums? CRA stated:

Some of the factors which may be considered in making [the] financial dependency determination include the income of the child from all sources, the cost of living and the ability of the child to provide for self-support, and any support received by the child from other persons. …[I] f a child is living with another individual who is providing support for the child at the time of the annuitant's death, the child would not be considered to be financially dependent upon the deceased for support at that time.

While Individual A's father did make some financial contributions for… care, it was the Crown who supported [him]… . Consequently… Individual A would not be considered to be financially dependent on the deceased at the time of death for the purpose of a deduction under paragraph 60(l)… ..

30 May 1995 T.I. 950554 (C.T.O. "Possibility of Two 'Spouses'")

If at the time of the annuitant's death, the annuitant is both married and living in a common law relationship as described in s. 252(4)(a), either of such spouses may be named as a designated beneficiary of the annuitant's RRSP, and the annuitant may make a tax-deductible transfer to such spouse's RRSP.

21 September 1994 T.I. 941921 (C.T.O. "Refund of Premiums to Spouse")

Discussion of circumstances in which an amount paid out of an unmatured RRSP is considered to be received by a surviving spouse "as a consequence of death".

10 March 1992 T.I. (Tax Window, No. 17, p. 7, ¶1795)

Where it can be established that a child is financially dependent on the deceased even though the child's income is over $5,000, amount paid to the child can be rolled into his RRSP.

6 March 1990 T.I. (August 1990 Access Letter, ¶1385)

Where the deceased annuitant had both a married spouse and a common law spouse, then by virtue of s. 146(1.1) the financial institution may pay a refund of premiums to each spouse pursuant to s. 146(1)(h), and where the beneficiaries of the annuitant's estate include both the legal and common law spouse, then the legal representative and the two spouses may designate jointly as provided in s. 146(8.1).

6 February 1990 T.I. (July 1990 Access Letter, ¶1336)

A status Indian is subject to tax on the withdrawal of funds from an RRSP (even if he was not entitled to a deduction for the contribution) because, irrespective of the location of the branch of the bank at which the RRSP was opened up, the trustee for the RRSP is off the reserve.

ATR-37 (4 Nov. 88)

the deceased's will provided for the setting up of a spouse trust and for a right of encroachment on the capital in favour of the spouse. Where the executors pay directly to the widow's RRSP the total proceeds of the unmatured RRSP of the deceased, the widow will be entitled to a deduction under s. 60(l) notwithstanding that she was not designated as a beneficiary under her husband's plan nor was specifically named in her husband's will as being entitled to receive this benefit.

Retirement Income

Administrative Policy

14 June 1995 T.I. 950829 (C.T.O. "Beneficiary Named on Annuity")

Because under s.(b) of the definition of retirement income, an individual's spouse may only become an annuitant if the individual dies after maturity of the plan, an individual would have to name her spouse as the beneficiary for any period prior to the maturity of the plan, and the estate of the surviving spouse could only be named as the beneficiary of the plan for the period subsequent to the plan's maturity. For purposes of determining the "maturity" date, an annuity is considered to commence when the annuity contract is executed.

Retirement Savings Plan

See Also

Amherst Crane Rentals Ltd. v. Perring, 2004 DTC 6584 (Ont. CA)

Under the laws of Ontario the spousal beneficiary of the deceased , who was the main beneficiary of two RRSPs, took priority over the respondent, a creditor of the bankrupt estate of the deceased.

In Re Guterres, 94 DTC 6603 (FCTD)

A financial institution holding an RRSP was required to deliver up the RRSP funds when faced with a writ of execution delivered by a sheriff pursuant to the laws of British Columbia.

MNR v. Sinclair, 93 DTC 5239 (FCTD)

The RRSP of the taxpayer was found to be subject to execution pursuant to s. 7(1) of the Executions Act (Manitoba). Although the RRSP property was held in trust, the equitable interest of a judgment debtor in personal property was subject to execution where the whole of the equitable and beneficial interest in the property was vested in him.

Capital City Savings & Credit Union Ltd. v. 299474 Alberta Ltd., [1990] 3 WWR 763 (Alta. Q.B.)

An application to collapse an RRSP was granted. Master Quinn stated (p. 768):

"If the beneficiary can in fact succeed in collapsing the plan merely by requesting the trustee to collapse it ... is there any reason why the seizing creditor cannot ask the court to order the collapse of the plan? In my view there is no reason. Why should [the beneficiary] be able to insist on the contractual rights of the trustee to frustrate the efforts of the execution creditor to collect its judgment?"

DeConinck v. Royal Trust Corp. of Canada, [1989] 1 CTC 179 (N.B.C.A.)

The relationship between a depositor and a trust company administering an RRSP is that of cestui que trust and trustee rather than debtor and creditor. [C.R: 224(1)]

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 224 - Subsection 224(1) ineffective demand on RRSP trustee 90

National Bank of Canada v. Creative Touch Millworks Inc., [1989] 2 WWR 180 (Sask QB)

A request by the annuitant to de-register the plan did not convert the relationship between the annuiant and the trust company from beneficiary/trustee to creditor/debtor.

Re Bliss (1984), 44 OR (2d) 129 (SCO)

An RRSP creates a trust rather than a debtor-creditor relationship notwithstanding that the plan may be collapsed at any time by the annuitant.

In re Gero, 79 DTC 5228, [1979] CTC 309 (FCTD)

The funds of an RRSP are seizable.

Administrative Policy

6 November 2014 External T.I. 2014-0528521E5 F - Payment of management fees by employer

LIRA treated as RRSP

Before going on to indicate that there generally is a taxable employment benefit where the employer pays the fund management fees for a group RRSP plan including locked-in retirement accounts, CRA stated:

“LIRA” has no meaning for the purposes of the Act. As noted in paragraph 22 of Information Circular 78-18R6, an LIRA is an arrangement that meets both the locking-in requirements under pension standards legislation as well as the requirements in the Act for RRSPs. The funds in such an account come from a registered pension plan. For the purposes of the Act, the LIRA is an agreement that meets the requirements for RRSPs. As a result, for the purposes of the Act, an LIRA is simply an RRSP.

Words and Phrases
LIRA
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) taxable benefit on employer payment of RRSP (including LIRA) and TFSA fund management fees but not those of DPSPs or SERPs 66

30 May 1995 T.I. 950551 (C.T.O. "RRSP Trust with more than One Annuitant")

Only one annuitant of an RRSP is permitted. Accordingly, a father and children cannot pool their RRSPs into one.

10 May 1995 External T.I. 7-950279 -

A group RRSP must have one trust for each annuitant: an RRSP may not have more than one annuitant.

4 August 1994 T.I. 941699 (C.T.O. "Foreign Currency in Depository RRSP")

Where the relationship between the annuitant and the RRSP issuer is as described in s. 146(1)(j)(ii)(C) [now s.b(iii)], the only restriction on the type of investments held in the RRSP is that imposed by the definition itself. The qualified investment rules apply only to RRSPs described in s. 146(1)(j)(ii)(A).

17 February 1994 T.I. 940130 (H.A.A. 7255-1) (C.T.O. "Retirement Income and RRSP Owned by Two Annuitants")

The provisions of the Act contemplate an RRSP as one individual's contract or arrangement with one financial institution. Accordingly, a purchase of a joint annuity by spouses who are the annuitants under separate RRSPs would not satisfy the requirement under the definition of "retirement savings plan" that each plan provide for a retirement income for the individual.

27 January 1994 T.I. H.A.A. 7255-1

Because the Act does not require that a deposit under (b)(iii) of the definition must accrue interest income rather than other types of income, it would be acceptable for all or a portion of amounts credited or added to a deposit as income to be calculated by reference to the performance of a stock index.

Articles

Teichman, "Creditor-Proofing Pension Assets", Taxation of Executive Compensation and Retirement, November 1993, p. 835.

Biro, "The Erosion of Life Insurance RRSP Immunity from Creditor's Claims", Estates and Trusts Journal, Volume 13, No. 2, p. 189.

McKee, "Debtor-Creditor Issues Affecting Annuity Contract", Estates and Trust Journal, Volume 12, No. 3, March 1993.

RRSP Deduction Limit

Administrative Policy

1 September 1994 External T.I. 5-942050 -

Re calculation of RRSP deduction limit for judges.

Deduction Limits

Spousal Plan

Administrative Policy

14 July 1994 T.I. 941591 (C.T.O. "RRSP as Spousal Plan")

Once an RRSP meets the definition of a spousal plan, it does not lose that status. Accordingly, the RRSP issuer should maintain records pertaining to the status of a plan as a spousal plan until the plan is deregistered. However, the income inclusion rule in s. 146(8.3) does not apply where at the time an amount is received out of the spousal RRSP the contributor and annuitant are living separate and apart due to a breakdown of their marriage or, as specified in s. 252(4)(b), of their conjugal relationship.

Paragraph 146(1)(i.1)

Administrative Policy

3 February 1992 External T.I. 5-912583 -

There is no restriction on the currency in which an annuity may be denominated.

29 October 1991 T.I. (Tax Window, No. 12, p. 16, ¶1558)

An annuity for a fixed term other than that specified in s. 146(1)(i.1)(ii) will not qualify.

Subsection 146(2) - Acceptance of plan for registration

Paragraph 146(2)(a)

Cases

Vancouver A & W Drive-Ins Ltd. v. United Food Services Ltd. (1981), 13 BLR 89 (BCSC)

It was stated in response to an argument that the Act operates to deprive an annuitant of his right to terminate an R.R.S.P. trust:

"It is one thing to say you cannot have a plan which provides for payment of benefits before maturity - which is what s. 146(2)(a)(i)(A) says. It is quite a different thing to say you cannot have a plan which may be terminated before maturity. I do not find, in a provision which says that you cannot have plan which has as its purpose the payment of benefits during its continuance before maturity, a prohibition against ending that plan before maturity."

Administrative Policy

26 July 1989 T.I. (Dec. 89 Access Letter, ¶1057)

Where a trustee had been unable to locate certain of the plan holders for approximately three years and an associated firm had loans outstanding with some of those plan holders in amounts exceeding the RRSP balances, the trustee was unable to offset the balances in the RRSP against the loans.

Paragraph 146(2)(c)

Administrative Policy

13 July 1994 T.I. 941543 (C.T.O. "Bankruptcy Trustee Seizing Registered Plan Assets")

The seizure of the property in an RRSP by a trustee in bankruptcy would not offend s. 146(2)(c) because of the agency relationship deemed to exist by virtue of s. 128(2)(a).

Paragraph 146(2)(c.3)

Cases

The Queen v. The Maritime Life Assurance Co., 2000 DTC 6402 (FCA)

Two RRSPs administered by the respondent were not amenable to seizure under s. 224(1) as no request had been received by the respondent to pay to the two taxpayers the cash value of their respective policies.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 131 73

In re the Bankruptcy of Whaling, 99 DTC 5478 (Ont CA)

In connection with a loan to the taxpayer by the CIBC, which was the depositary for two RRSPs that he opened up with the CIBC, it was agreed that if he should fail to meet the repayment term for loans the bank made to him he would, at the bank's request, collapse the RRSPs in order to repay the loans, or if the RRSPs could not be collapsed, the funds in the RRSPs would be applied against the loans at maturity.

In finding that after the bankruptcy of the taxpayer, the depositary had priority over other creditors of the bankrupt estate, Doherty J.A. found that the breach of s. 146(2)(c.3) only led to the tax consequences described in ss.146(12) and (13), and that s. 146(2) did not prohibit the pledging of an RRSP as security or affect the enforceability of such security.

In Re Leavitt, 98 D.T.C 6282 (BCCA)

S.146(2)(c.3) was found to apply not only to deposit plans but also to trust plans administered by members of the CPA. Accordingly, Canada Trust Company, which was the trustee of the taxpayer's RRSP, was not entitled to set off amounts owed to it by the taxpayer against the net proceeds realized from collapsing the taxpayer's RRSP following his assignment in bankruptcy.

Deloitte, Haskins & Sells Ltd, Trustee of Pheonix v. Bank of Nova Scotia, 89 DTC 5355 (Sask. C.A.)

After finding that a general assignment of book debts made by the bankrupt in favour of a bank was not intended to cover his RRSP, Sherstobitoff J.A. stated that "if the parties did intend that the assignment cover the RRSP, they acted in violation of s. 146. To that extent, the assignment would have been illegal and therefore unenforceable."

Articles

Boyd, "RRSP Loans: Re: Leavitt End Restrictions on Lenders' Rights Against the Plan", RRSP Planning, Vol. IV, No. 2, 1997, p. 249.

Paragraph 146(2)(c.4)

Administrative Policy

9 January 1997 T.I.

"Where the terms of the RRSP plan document provide that the trustee or administration fee may be recovered from the plan funds, the payment of such a fee either with plan funds or by the agent of the RRSP trust does not contravene the conditions in paragraph 146(2)(c.4) ... ."

17 February 1995 External T.I. 5-943329 -

2 November 1994 Memorandum 942733 (C.T.O. "RRSP Advantages of Low-Interest Loan")

In most cases, an annuitant who borrows in order to make an RRSP contribution will be subject to a requirement while the RRSP loan is outstanding that distributions of property from the RRSP be transferred to a non-RRSP account, with the issuer having the right to apply the property in the non-RRSP account in satisfaction of the loan. Accordingly, although the RRSP property is not security for the loan, these arrangements result in the RRSP loan being more similar to a secured loan than to an unsecured loan. Accordingly, it is appropriate for the rate of interest on an RRSP loan to be lower than rates offered on unsecured loans notwithstanding the prohibition in s. 146(2)(c.4).

1 March 1994 External T.I. 5-940221 -

A contribution made by an organization to a charity based on contributions to an RRSP by an annuitant of the RRSP would be an unacceptable advantage if the annuitant (defined for these purposes to include persons not dealing at arm's length with the annuitant) did not deal at arm's length with the organization, the annuitant obtained the advantage of directing the payment of the donation to a particular charity, the annuitant received credit for the contribution, or the annuitant obtained the right to claim a tax deduction in respect of the donation. An annuitant also would receive an advantage if an RRSP was offered that provided a contribution would only be made to one or more specified organizations.

1 September 1992 T.I. (Tax Window, No. 24, p. 19, ¶2192)

Amounts paid by mutual fund managers to RRSPs as a reimbursement of redemption charges incurred by the RRSPs in switching mutual funds will not be considered an advantage to annuitants for purposes of s. 146(2)(c.4).

31 July 1991 T.I. (Tax Window, No. 7, p. 21, ¶1379)

Where the mortgagor of a property is the annuitant, the RRSP will be considered to have conferred a benefit on the annuitant unless the mortgage is a qualified investment under s. 4900(1)(j), the amount of the mortgage interest and other terms reflect normal commercial practice, and the mortgage is administered as if it were a mortgage on property owned by a stranger.

Subsection 146(4) - No tax while trust governed by plan

Administrative Policy

10 October 2014 APFF Roundtable, 2014-0538221C6 F - Day Trading in RRSP

RRSP/RRIF day-trading of qualified investments is exempt

Does CRA accept comments in Prochuk for the proposition that day trading in an RRSP trust does not result to carrying on a business for the purpose of 146(4)b)? After noting that the case did not change its position that day trading in an RRSP was a business (as the conclusion reached in the case was limited to day trading in an RRSP not being a relevant factor to determining whether an individual is carrying on a business outside of the plan), CRA then paraphrased s. 146(4)(b) and stated (TaxInterpretations translation):

This signifies that if an RRSP trust carries on speculative day trading activities, it does not have income tax payable on its income derived from its business on condition that the activities of the business are limited to the purchase and sale of qualified investments… .

9 June 1995 External T.I. 5-950712 -

RC will consider a short sale of shares covered by a long convertible debenture to be similar to the writing of a covered call option.

30 January 1995 T.I. 943068 (C.T.O. "RRSP Qualified Investments - Puts & Calls")

An RRSP that writes naked call options would be considered to be carrying on a business.

27 October 1994 T.I. 942710 (C.T.O. "Options as RRSP Qualified Investments")

Explanation of why writing covered call options and purchasing call options are acceptable RRSP activities, whereas buying put options is not.

27 July 1994 T.I. 941656 (C.T.O. "RRSP Entering into a Spread with Options")

Entering into a spread, for example, simultaneously writing a naked call option with a higher exercise price against a call option purchased by the RRSP, would be indicative of carrying on a business and can subject the RRSP to taxation under s. 146(4).

14 June 1994 External T.I. 5-933739 -

The mere fact that the annuitant has ceased to be a resident of Canada does not imply that the income of the RRSP becomes subject to tax.

1 June 1993 External T.I. 5-930642 -

"It is our view that paragraph 146(4)(a) and subsection 146(10) of the Act do not apply where a RRSP buys shares payable on an instalment basis because an obligation to pay instalments does not constitute a loan or borrowed money with a relationship of lender and borrower between the parties."

19 May 1993 T.I. (Tax Window, No. 31, p. 5, ¶2512)

The writing of naked call options (unlike the writing of covered call options) will be considered to be carrying on a business. Where the RRSP did not have funds to purchase the investments on the exercise of the option and was required to borrow, the income of the RRSP could be taxable under s. 146(4)(a).

22 February 1991 T.I. (Tax Window, Prelim. No. 3, p. 22, ¶1118)

An RRSP trust that engages in hedging or short sales might be considered to be carrying on a business rather than investing.

19 April 1990 T.I. (September 1990 Access Letter, ¶1431)

Entering into a spread transaction (i.e., simultaneously writing a naked call option with a higher exercise price against a call option purchased by the RRSP) would be indicative that the RRSP is carrying on a business.

Paragraph 146(4)(a)

Administrative Policy

S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Accommodation of unintended short-term overdrafts

1.84 The CRA will not apply the adverse income tax consequences ... to an overdraft in a registered plan if it:

  • is temporary in nature and covered without undue delay;
  • arises as a result of (i) a mismatch of cash flow due to differences in standard settlement cycles for securities, (ii) a reasonable error, or (iii) an unintended infrequent event; and
  • does not have the character of leveraged investing.

This administrative position is intended to accommodate certain overdrafts of very short duration that are quickly or naturally reversed or that are infrequent and inadvertent. This position does not apply to borrowing that arises in connection with a cashless exercise of warrants or a margin account.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 204 - qualified investment - (a) 208
Tax Topics - Income Tax Act - Section 262 113
Tax Topics - Income Tax Act - Section 204 - qualified investment - (d) 320
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) 256
Tax Topics - Income Tax Act - Section 204.4 - Subsection 204.4(1) 107
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(2) 52
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) 149
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j.1) 53
Tax Topics - Income Tax Act - Section 204 - qualified investment - (b) 55
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(e) 173
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) 69
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(u) 80
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(v) 50
Tax Topics - Income Tax Regulations - Regulation 4901 - Subsection (1) - Specified small business corporation 38
Tax Topics - Income Tax Regulations - Regulation 5100 - Eligible Corporation 44
Tax Topics - Income Tax Act - Section 207.04 - Subsection 207.04(4) 82
Tax Topics - Income Tax Act - Section 146 - Subsection 146(10.1) 90
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(6) 110
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(b) 94
Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(6) 156

Paragraph 146(4)(b)

Administrative Policy

S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Day-trading permitted

1.89 In the case of an RRSP or RRIF, the rules in paragraphs 146(4)(b) and 146.3(3)(e) for calculating the amount of business income that is taxable to the RRSP or RRIF specifically exclude any business income from, or from the disposition of, qualified investments. ... This means, for example, that if an RRSP or RRIF were to engage in the business of day trading of various securities, it would not be taxable on the income derived from that business provided that the trading activities were limited to the buying and selling of qualified investments.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 204 - qualified investment - (a) 208
Tax Topics - Income Tax Act - Section 262 113
Tax Topics - Income Tax Act - Section 204 - qualified investment - (d) 320
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) 256
Tax Topics - Income Tax Act - Section 204.4 - Subsection 204.4(1) 107
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(2) 52
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) 149
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j.1) 53
Tax Topics - Income Tax Act - Section 204 - qualified investment - (b) 55
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(e) 173
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) 69
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(u) 80
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(v) 50
Tax Topics - Income Tax Regulations - Regulation 4901 - Subsection (1) - Specified small business corporation 38
Tax Topics - Income Tax Regulations - Regulation 5100 - Eligible Corporation 44
Tax Topics - Income Tax Act - Section 207.04 - Subsection 207.04(4) 82
Tax Topics - Income Tax Act - Section 146 - Subsection 146(10.1) 90
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(6) 110
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(a) 118
Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(6) 156

Subsection 146(5) - Amount of RRSP premiums deductible

Administrative Policy

23 January 1997 T.I. 963958

"Where an annuitant of an RRSP or RRIF trust enters into a contract with a person for advice on the purchasing and selling of investments of the trust (i.e., the contract is between the annuitant and the person), it is the Department's position that the fees for such advice are an obligation of the annuitant and not of the RRSP or RRIF trust. We have reconsidered our previous position with respect to the payment of such fees by the annuitant outside of the RRSP or RRIF trust and we are now of the view that the payment of such fees by the annuitant would not be considered a premium or gift contributed to the RRSP or RRIF."

3 October 1996 T.I. 963156 (C.T.O. "Fees for RRSP and RPP")

The payment of administration or management fees by an annuitant will constitute the payment of a premium to the RRSP.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(11) 25

8 June 1995 External T.I. 5-950732 -

Where a broker selling units of a mutual fund to an RRSP reimburses the RRSP for the redemption fee payable by it on redeeming a mutual fund previously held by it, the reimbursement will not be considered to be an advantage pursuant to s. 146(2)(c.4), will not constitute income to the annuitant and will not be considered to be a contribution to the RRSP by the annuitant.

28 April 1995 T.I. 950344 (C.T.O. "Stock Option in RRSP")

Where an employee contributes a stock option to acquire a share for an exercise price of $3, when the share has a fair market value of $10, the employee will be entitled to a deduction under s. 146(5) of $7.

13 June 1994 T.I. 941241 (C.T.O. "Payment of RRSP/RESP Investment Expense")

The reimbursement by brokers or dealers of the redemption fee owed by a registered plan unitholder on the exchange of mutual fund units for units in a mutual fund would not be considered a contribution by the annuitant with respect to an RRSP.

8 December 1993 T.I. 932271 (C.T.O. "Deduction of RRSP Overcontribution")

Following the maturation of an RRSP when an annuitant turns 71, she may continue to deduct amounts that were over-contributed to her RRSP so long as she has "earned income" in the previous year.

1 December 1993 External T.I. 5-933284 -

Discussion of rules governing contributions to an RRSP by a non-resident of Canada.

22 April 1992 External T.I. 5-921033 -

Annuitants who pay annual mortgage administration fee in respect of mortgages held in their RRSP will be considered to have made a gift to the plan.

8 May 1991 T.I. (Tax Window, No. 3, p. 30, ¶1247)

An individual who has made an over-contribution in the year he turns 71 may deduct the amount of the over-contribution in subsequent years to the extent permitted by s. 146(5) if he has earned income in those years.

May 1991 T.I. (C.T.O. Fax Service Document No. 96)

Fees relating to investments of an RRSP (e.g., fees for transfers, investment counselling and brokerage) are expenses of the trust. Accordingly, an annuitant who reimburses the trust for such costs will be considered to have made a contribution to the RRSP.

22 September 1989 T.I. 5-8449 (C.T.O.)

Contributions to an RRSP trust made to offset expenses of the trust described in IT-124R5, para. 2, represents premiums.

IT-320R2 "Registered Retirement Savings Plans - Qualified Investments"

IT-124R5 "Contributions to Registered Retirement Savings Plans"

Articles

Kaplan, "Registered Retirement Savings Plan: An Update", 1997 Canadian Tax Journal, Vol. 45, No. 6, p. 1416.

Ripsman:, "IPP, IPP, 'ooray", August 1993 CA Magazine, p. 39

Comparison of the respective advantages of an individual pension plan and a registered retirement savings plan.

Boulanger, "Registered Retirement Savings Plan May Provide Greater Tax-Assisted Accumulation Under Certain Circumstances", Taxation of Executive Compensation and Retirement, October 1990, p. 339.

Subsection 146(5.1) - Amount of spousal RRSP premiums deductible

Administrative Policy

4 January 1992 T.I. (Tax Window, No. 28, p. 23, ¶2394)

In respect of the 1992 and subsequent taxation years, RC will permit the deduction of contributions made to a spousal RRSP in respect of the deceased by the deceased's legal representatives where the contributions are made within the period from the date of death to 60 days after the calendar year in which the death occurred.

IT-307R2 "Registered Retirement Savings Plan for Taxpayer's Spouse"

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) 29

Subsection 146(5.21) - Anti-avoidance

Paragraph 146(5.21)(a)

Administrative Policy

20 December 1989 T.I. (May 1990 Access Letter, ¶1233)

s. 146(5.21)(a) could apply where there has been an unnecessary deferral of DPSP contributions.

Subsection 146(6)

Cases

The Queen v. Chambers, 96 DTC 6095 (FCTD)

The taxpayers, who would borrow money on a non-interest bearing basis from their RRSPs at the beginning of a taxation year and then borrow money from a bank at the end of the taxation year to repay the loans from their RRSPs, were entitled to deductions under s. 146(6) in respect of such repayments. In finding that former s. 245(1) did not apply, Tremblay-Lamer J. stated (at p. 6099):

"In the case at bar, Parliament had considered the acquisition and disposition of non-qualified investments. The Act specifically and in detail provides for a penalty for the disposition. The federal legislature did not see [it] fit to include anything concerning a series type transaction."

See Also

Foreman v. MNR, 93 DTC 7 (TCC)

The taxpayer's self-directed RRSP made a loan to him in the taxation year evidenced by promissory notes, and in the same year the taxpayer repaid the loan. Such repayment constituted a disposition of a non-qualified investment for purposes of s. 146(6), with the result that the taxpayer was entitled to a deduction thereunder.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition debt disposition includes its extinguishment 67

Paragraph 146(4)(a)

Administrative Policy

22 October 2015 Internal T.I. 2013-0486491I7 - Overdrafts in a TFSA

accommodation only of temporary technical breach of borrowing prohibition for registered plans

CRA stated that it will not act on “an overdraft in a TFSA if it:

  • is temporary in nature and covered without undue delay;
  • arises as a result of (i) a mismatch of cash flow due to differences in standard settlement cycles for securities, (ii) a reasonable error, or (iii) an unintended infrequent event; and
  • does not have the character of leveraged investing.”

It stated that it will not accommodate a breach which results from a cashless exercise procedure in which the broker advances funds to the plan to exercise warrants and repays itself out of the sale proceeds of the acquired shares. CRA then stated:

If a trust governed by a registered retirement savings plan, registered retirement income fund or registered disability savings plan borrows money in a year (or in a previous year that has not been repaid before the beginning of the year), it is required to pay Part I tax on its taxable income for the year in accordance with paragraph 146(4)(a), subsection 146.3(3) or paragraph 146.4(5)(a), respectively. If a trust governed by a registered education savings plan borrows money, paragraph 146.1(2.1)(d) provides that the plan is revocable (subject to certain conditions that accommodate short-term borrowing).

…[T]he [above] administrative position should also apply for the purposes of these provisions.

See summary under s. 146.2(2)(f).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(2) - Paragraph 146.2(2)(f) administrative accommodation of short term inadvertent overdrafts but not of cashless warrant exercise 340
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Unused TFSA Contribution Room deemed proceeds under s. 146.2(8) are not a distribution 139

Subsection 146(8) - Benefits taxable

Cases

Lavoie v. The Queen, 2009 DTC 998, 2009 TCC 293 (Informal Procedure), aff'd 2010 DTC 5171 [at 7303], 2010 FCA 266

Payments to the taxpayer from a mutual fund in his RRSP portfolio, part of a settlement between the mutual fund and the Ontario Securities Commission regarding an investigation into improper market timing transactions, were "a benefit out of or under an RRSP" under s. 146(8) rather than a windfall.

See Also

Demers v. The Queen, 2014 TCC 368

Superior Court nullification of investment contracts did not nullify RRSP withdrawals

The two taxpayers, who had been CN employees, were convinced by two promoters (the Lavignes) to transfer all the funds in their CN pension plans to self-directed RRSPs managed by the Lavignes, with most of the funds being lost. However, they withdrew some funds from the RRSPs. In 2008, they along with other investors obtained a judgment from the Quebec Superior Court which annulled their investment contracts with the Lavignes and awarded them damages.

In finding that this judgment did not render the amounts withdrawn from the RRSPs non-taxable, Jorré J stated (paras. 39-40, TaxInterpretations translation):

[T]he Superior Court recognized that the appellants had received the two amounts in question, as they were deducted from the amount invested in the calculation of the amount which the Superior Court ordered the defendants to pay to the appellant. … Consequently, the nullification pronounced by the Superior Court does not change the fact that the appellants received the amounts…in question and that they were amounts withdrawn from their respective RRSPs.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Rectification & Rescission Superior Court nullification of investment contracts did not nullify RRSP withdrawals 167

Astorino v. The Queen, 2010 DTC 1112 [at 3061], 2010 TCC 144 (Informal Procedure)

The taxpayer transferred money from his RRSP into a registered retirement plan whose registration was later revoked retroactively. Miller J. found that the taxpayer had therefore retroactively received a benefit out of an RRSP which, under s. 146(8), was taxable income for the year when the money was transferred.

Israel v. The Queen, 79 DTC 5418, [1979] CTC 468 (FCTD)

Amounts paid out of an RRSP no longer retained their character as farming income, notwithstanding that the funds for the initial deposit came from farming income.

Administrative Policy

3 October 1996 T.I. 962856 (C.T.O. "RRSP Administration & Investment Management Fees")

Where funds inside an RRSP (or RRIF) are used to pay administration fees, no benefit or amount is received by the annuitant as a consequence thereof.

9 January 1996 T.I. 952868 (C.T.O. "Registered Retirement Savings Plan Issuer Interpleads to the Courts")

The transfer of property of an RRSP to a court as a result of an interpleading will not result at that time in an income inclusion to the annuitant.

4 July 1995 External T.I. 5-951695 -

"The costs associated with redeeming mutual fund units in an RRSP trust are expenses of the trust and are properly paid for with trust funds." Accordingly, the amount shown on a T4RSP where mutual fund units are redeemed is the net amount rather than the gross amount of the redemption proceeds.

2 June 1995 T.I. 950375 ("Charitable Gift Annuity in RRSP")

Discussion of application of ss.56(2) and 146(8) where an annuitant wishes to use some or all of the property in his RRSP to purchase a charitable gift annuity.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 27

30 November 1992 T.I. 923168 (September 1993 Access Letter, p.423, ¶C144-238)

Bonus interest payments paid by a credit union directly to the annuitant of an RRSP would be included in the annuitant's income under s. 146(8). The credit union would not be penalized pursuant to s. 146(13.1), nor would the benefit be considered to be a prohibited advantage under s. 146(2)(c.4). The payment of the interest to the annuitant would result in the deposit made by the RRSP no longer being a qualified investment.

Subsection 146(8.1) - Deemed receipt of refund of premiums

Administrative Policy

11 October 2013 Roundtable, 2013-0495281C6 F - Question 9 - APFF Round Table

deemed receipt of refund of premiums for amount paid to executor, with deemed benefit to recipient spouse

CRA stated :

Where an amount under an unmatured RRSP of a deceased annuitant is paid to the deceased's legal representative and the surviving spouse is the beneficiary of the estate, we consider that the spouse did not receive the amount in the RRSP due to the annuitant's death and the payment does not constitute a refund of premiums as defined in subsection 146(1). In such a situation, subsection 146(8.1) deems the amount paid to the deceased annuitant's legal representative as being received by the surviving spouse as a benefit that is a refund of premiums, and not by the legal representative, to the extent that the amount would have been a refund of premiums if it had been paid under the plan to the beneficiary spouse of the annuitant's estate and that it is designated jointly by the legal representative and the surviving spouse in prescribed form T2019 (footnote 1) filed with the Minister.

The amount qualifying as a refund of premiums is a benefit for the recipient spouse who receives it, or is deemed to have received it, and it must be included in computing his or her income pursuant to subsection 146(8) and paragraph 56(1)(h). An amount equal to the refund of premiums may be deducted in computing the spouse's income under paragraph 60(l) to the extent that it is paid by or on behalf of the spouse in the year or within 60 days after the end of the year as a premium under an RRSP, RRIF or for an eligible annuity of which the surviving spouse is the annuitant.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(l) transfer to RRSP or RRIF of surviving non-resident spouse: SIN required; payment can be made directly to RRSP/RRIF of surviving spouse in accordance with joint instructions even where no specific non-will designation is made 510
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.1) transfer of RRIF by executor to RRIF of surviving spouse 306
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - lParagraph 212(1)(q) direct transfer to RRIF of surviving non-resident spouse 280

2 May 1995 T.I. 942676 (C.T.O. "RRSP's RRIF's, 212(1)")

"Where the legal representative and the spouse as beneficiary of the deceased's estate, jointly direct that the amount that would otherwise be paid to the estate out of or under the deceased's RRSP ... be transferred by the payer directly to a RRSP ... or be used to acquire an annuity under which the spouse of the deceased is the annuitant, the Department would normally accept that such amount has been paid to the deceased's legal representative for purposes of subsection ... 146(8.1) ... . Consequently, provided that the deceased's legal representative and spouse have jointly designated in prescribed form with respect to any such amount, the spouse would be deemed to have received the amount in the year as a refund of premiums ... ."

20 November 1991 Memorandum (Tax Window, No. 7, p. 7, ¶1390)

Where an amount is paid out of an RRSP to the estate of the deceased annuitant and a designation is made under s. 146(8.1), the beneficiary must include the deemed refund in income for the calendar year in which the payment was made to the estate.

10 April 1991 T.I. (Tax Window, No. 2, p. 26, ¶1198)

The taxation year referred to is the taxation year of the estate in which the payment was received.

Subsection 146(8.2)

Administrative Policy

23 October 2017 External T.I. 2017-0685001E5 F - Withdrawal of RRSP over-contributions after death

the deemed s. 146(8.8) RRSP benefit on death can be treated as a withdrawal of an excess RRSP contribution
The response here is that also given at 6 October 2017 APFF Financial Strategies and Instruments Roundtable, Q.2 (also summarized under s. 146(8.8)).

An individual, who made an excess RRSP contribution in 2015, dies in 2016. CRA noted that technically, in order for the executor to claim a s. 146(8.2) deduction in the terminal return for the excess contribution, there was required to be “a payment from the RRSP in respect of undeducted premiums of the taxpayer … received by the taxpayer in the year,” but then stated:

[T]he CRA generally accepts that an amount deemed to be received by a deceased annuitant under subsection 146(8.8) and included in the annuitant’s income for the year of death under subsection 146(8) … should be treated as a payment received by the annuitant for the purposes of subsection 146(8.2).

Thus, the deduction generally would be available (which was to be claimed directly in the terminal return without using a Form T746.)

6 October 2017 APFF Financial Strategies and Financial Instruments Roundtable Q. 4, 2017-0707781C6 F - Withdrawal of undeducted RRSP contributions

s. 146(8.2) deduction for withdrawing excess contributions can be available even where Pt X.1 tax is not applicable

In the following situations, can the taxpayer claim a deduction under s. 146(8.2) for the withdrawal of an excess (otherwise deductible) contribution made to the taxpayer’s RRSP?

(a) In 2016, the individual contributes the maximum deductible amount of $25,370 and then, later in the year out of inadvertence (and without the intention described in s. 146(8.2)(f)), contributes a further $30,000, so that there is a resulting cumulative excess amount (as per s. 201.2(1.1)) of $28,000. In order to cut off Part X.1 tax for 2017, the individual withdraws $30,000 in February 2017. However, also in 2017, the individual and employer contribute $26,010 to a group RRSP. Is the $30,000 withdrawal deductible under s. 146(8.2), and is the $26,010 contribution deductible under s. 146(5)?

(b) An individual makes an RRSP contribution that does not exceed the RRSP deduction limit for the year. However, later in the year, the individual wishes to withdraw the contribution and to not claim a deduction (for example, because of cash flow issues, or deciding that a TFSA contribution was preferable). If the conditions in ss. 146(8.2)(a) to (d) were satisfied, would s. 146(8.2)(e) preclude a deduction?

In finding that a deduction was not precluded in Situation, (a) and, perhaps, (b), CRA stated:

[T]he existence of an RRSP cumulative excess amount giving rise to Part X.1 tax is not a condition for the application of subsection 146(8.2). This provision can apply whether or not the annuitant is subject to Part X.1 tax at the time the payment is withdrawn from the RRSP.

…[T]he fact that, in situation (a), the payment received by the taxpayer in 2017 is more than the payment required to extinguish the tax under Part X.1 … [and] in situation (b), the taxpayer is not subject to tax under Part X.1 before receiving the payment would not in and of itself preclude the application of subsection 146(8.2).

…[U]nder [s. 146(8.2)(e)], if undeducted premiums have resulted in an overcontribution then, subject to paragraph 146(8.2)(f), the deduction will only be possible if such excess contribution was in fact made inadvertently. …

[I]n Situation (a), the $26,010 amount paid by the taxpayer to his or her RRSP after receiving the $30,000 amount would generally be deductible under subsection 146(5).

6 October 2017 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2017-0710681C6 F - Withdrawal of RRSP over-contributions after death

deemed s. 146(8.8) benefit on death treated as RRSP withdrawal, and executor should not use Form T746

An individual, who made an excess RRSP contribution in 2015, dies in 2016. Where the time periods in s. 146(8.2) are met, can the executor complete the applicable forms (especially Form T746) in order that the deceased’s terminal return can benefit from the s. 146(8.2) deduction? CRA first indicated that s.146(8.2) requires inter alia that “a payment from an RRSP in respect of undeducted premiums of the taxpayer, be received by the taxpayer in the year,” but then stated:

[T]he CRA generally accepts that an amount deemed to be received by a deceased annuitant under subsection 146(8.8) and included in the annuitant’s income for the year of death under subsection 146(8) and paragraph 56(1)(h) should be treated as a payment received by the annuitant for the purposes of subsection 146(8.2). Thus, to the extent that all other conditions of subsection 146(8.2) are satisfied, the deduction provided under that subsection may be claimed in the deceased annuitant’s terminal return.

Respecting Form T746, it does not cover the situation where the annuitant has died. The executor of a deceased annuitant's estate … should simply indicate the amount claimed in line 232 of the terminal return of the deceased annuitant and use the space to the left of the line to indicate that it is a deduction for the refund of unused RRSP contributions.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.8) income inclusion under s. 146(8.8) on death irrespective whether premiums exceeded deductible amount 108

Subsection 146(8.3) - Spousal or common-law partner payments

Cases

Gilbert v. The Queen, 93 DTC 5115 (FCA)

Given that s. 146(8.3) refers to "premiums paid" by the taxpayer in the two preceding taxation years rather than "premiums deducted" in such taxation years, there was a required inclusion in the taxpayer's income as a result of his wife withdrawing a sum from her RRSP in 1989 which he had contributed in February 1987 and deducted for his 1986 taxation year.

Administrative Policy

18 September 2013 External T.I. 2012-0462061E5 F - Amount included in the income of the annuitant

no application of s. 148(8.3) where excluded withdrawal followed by contribution and withdrawal from own RRSP

An individual used a spousal or common-law partner plan for the purpose of making an "excluded withdrawal" within the meaning of s. 146.01(1), and subsequently repaid his "HBP balance" within the meaning of s. 146.01(1) through a contribution to a plan for which he was the sole individual to have paid premiums and the annuitant.

Must a withdrawal then made by the individual from his RRSP be included in his income under s. 146(8), or is the amount instead included in his spouse's income under s. 146(8.3). CRA responded (TaxInterpretations translation):

[S]ubsection 146(8.3), clearly limits its application to situations where the amounts withdrawn by the annuitant come from a plan for the benefit of the spouse or common-law partner. As a result … provided the amounts withdrawn are from an RRSP where only the annuitant paid premiums, the withdrawals would be included in the computation of the annuitant's income under subsection 146(8).

Subsection 146(8.8) - Effect of death where person other than spouse becomes entitled

Cases

Curley v. MacDonald, 2001 DTC 5141 (Ont Sup CT J)

The estate of the deceased annuitant of an RRSP was liable for the income taxes payable as a result of the deemed benefit under s. 146(8.8). Only if the estate could not pay the taxes did s. 160.2(1) become relevant.

Slater v. Klassen Estate, 2000 DTC 6336 (Man. Q.B.)

In finding that the estate of the taxpayer, who was the annuitant under RRSPs under which his former wife was the beneficiary, was liable to income tax on his death based on the value of the RRSP at that time, Schulman J.A. stated (at p.6338):

"The intention of Parliament is shown to be that no matter who the payee of the funds, for purposes of payment of tax, payment is deemed to have been made to the annuitant, in this case Mr. Klassen, immediately before his death. In this manner, income tax is assessed at the same rate, no matter who the payee happens to be."

Schulman J. also found (at p. 6338) "that the payee referred to in s. 153 is the person deemed to have been the recipient of the funds under s. 146(8.8) ... ."

See Also

Murphy Estate v. The Queen, 2015 TCC 8

consent order for settlement of estate litigation did not have retroactive effect

In his terminal return for his 2009 year, the taxpayer reported RRSP income of $256, 829 in respect of an RRSP for which his children were the heirs. Following litigation between his surviving spouse (Ms. DeMarsh) and those children, a consent judgment issued by the Supreme Court of Nova Scotia on May 13, 2011 provided that the children would transfer all interests they had in such RRSPs to Ms. DeMarsh.

In rejecting the appellant's submission that the consent order had the effect of confirming that the RRSPs had vested in Ms. DeMarsh on the deceased's death, V. Miller J noted that the order did not change the beneficiaries, and was not intended to be a rectification order and also noted that the stipulation that the children would transfer their interests in the RRSPS to Ms. DeMarsh implied that they accepted the gift of the RRSPs rather than disclaiming it. Accordingly, the RRSP proceeds were includible in the deceased's income under ss. 146(8.8) and (8).

She stated, at para. 33, that the effect of a disclaimer (being "a refusal to accept an interest which has been bequeathed to a disclaiming party") is "to void the gift as if the disclaiming party never received it."

Locations of other summaries Wordcount
Tax Topics - General Concepts - Effective Date disclaimer has retroactive effect 120

Administrative Policy

6 October 2017 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2017-0710681C6 F - Withdrawal of RRSP over-contributions after death

income inclusion under s. 146(8.8) on death irrespective whether premiums exceeded deductible amount

An individual, who made an excess contribution in 2015, dies in 2016. Will the excess contribution be added to the deceased’s income under ss. 146(8) and (8.8)? CRA responded:

Under subsection 146(8.8), where the annuitant of an RRSP dies before its maturity, the annuitant is deemed to have received, immediately before the annuitant’s death, as a benefit out of or under the RRSP, an amount equal to the fair market value ("FMV") of all the property of the RRSP at the time of death. … The fact that premiums paid to the RRSP prior to the time of death could not be deducted has no impact on the amount to be included.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.2) deemed s. 146(8.8) benefit on death treated as RRSP withdrawal, and executor should not use Form T746 215

14 October 1997 T.I. 970653

In finding that the fair market value of mutual fund units held by an RRSP would take into account redemption fees, RC stated that "if units of a fund cannot be transferred between persons dealing at arm's length but must be redeemed, we would expect that the fair market value of the units would be their value otherwise determined less any applicable redemption charges".

Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Shares 64

19 August 1993 T.I. (Tax Window, No. 33, p.8, ¶2644)

Where the estate of the deceased is the beneficiary of an RRSP and the deceased's spouse has an interest in the RRSP only by virtue of being a life tenant under the will, s. 146(8.8) will apply to include the fair market value of the RRSP in the income of the deceased.

1992 A.P.F.F. Annual Conference, Q. 20 (January - February 1993 Access Letter, p. 58)

In light of the definition of "spouse" in s. 146(1.1), a deduction may be obtained under s. 146(8.8) for the transfer of a portion of an RRSP fund to a legal spouse (i.e., the surviving wife from whom the taxpayer was separated but not yet divorced) and to the transfer of the balance of the fund to a common law spouse.

Subsection 146(8.9) - Idem [Effect of death where person other than spouse becomes entitled]

Administrative Policy

9 January 1996 T.I. 951718 (C.T.O. "Death, Registered Retirement Savings Plan Maturity, Spouse")

Where an annuitant dies prior to the maturity of an RRSP, the deceased annuitant's spouse is the beneficiary and the plan administrator does not complete a direct transfer of the entire RRSP refund of premiums under s. 60(l) to the RRSP of the spouse until subsequent to December 31 of the year following the year of death, a T4RSP supplementary slip with an amount equal to the fair market value of the property held in the plan will have to be issued in the year of death to the deceased annuitant. However, after December 31 of the year of transfer, the surviving spouse could contact the appropriate Tax Services Office to request that the terminal return of the deceased annuitant be amended to allow a deduction under s. 146(8.9) with respect to the fair market value of the property held in the plan and included in the deceased annuitant's terminal return.

16 July 1991 T.I. (Tax Window, No. 6, p. 9, ¶1353)

RC's assessing policies may not apply if the disbursements out of the RRSP do not satisfy beneficial interests which are valid under provincial law.

Subsection 146(8.91) - Amounts deemed receivable by spouse or common-law partner

Administrative Policy

4 March 1991 T.I. (Tax Window, No. 1, p. 12, ¶1132)

Where the annuitant of an RRSP dies after maturity of the plan and the spouse is entitled to 1/2 of the property in the RRSP, no rollover is available because the spouse is not deemed to be the annuitant under the plan. S.146(8.91)(a) applies only when the spouse is to become the annuitant under the plan.

Subsection 146(9) - Where disposition of property by trust

Cases

St. Arnaud v. Canada, 2013 DTC 5074 [at 5909], 2013 FCA 88

The taxpayers were fraudulently induced to purchase worthless securities with their RRSP funds. Webb JA found that s. 146(9) did not apply to include the difference between the purchase price and the (nil) fair market value in the taxpayers' income. The trial judge had erred in concluding that securities had in fact been acquired. Under the Alberta Business Corporations Act, the corporations in question could not hold shares in themselves, so that a purported acquisition by one of the RRSPs of shares which the vendor corporation purportedly owned of itself was not valid. Furthermore, in the case of purported purchases by other of the RRSPs of shares of a corporation from a third party, the evidence supported a finding that such "vendor" did not own such shares.

The taxpayers had also argued that s. 146(9) should only apply in situations where the acquisition of property by an RRSP or RRIF is accompanied by a collateral arrangement devised to allow an annuitant to extract funds from an RRSP or RRIF without paying tax on such amounts. The majority found it was unnecessary to consider this argument in light of its conclusions above.

In a concurring opinion, Sharlow JA agreed with the taxpayer's alternative argument. The purpose of s. 146(9) is not to punish investment decisions merely because they prove to be unwise - that is, merely because the fair market value of an acquired property is less than the taxpayer thinks it is. For example, a taxpayer who spends $800,000 of RRSP funds on securities that she believes are worth $800,000 but are in fact only worth $600,000 clearly should not be hit with a $200,000 income inclusion (para. 61). There was no basis in the present case for concluding that the taxpayers should be treated any differently.

(Another taxpayer attempted to purchase the worthless shares with RRIF funds, and the judges reached similar conclusions regarding the application of the similarly worded s. 146.3(4).)

See Also

Baker v. The Queen, 2014 DTC 1175 [at 3649], 2014 TCC 204

taxpayer did not demolish Minister's assumptions about collateral arrangement

The taxpayer used his RRSP to purchase shares in a corporation for far more than their fair market value. The Minister included the difference in the taxpayer's income under s. 146(9). The taxpayer's appeal was heavily based on Sharlow JA's concurring opinion in St. Arnaud, and the proposition that the Minister had the onus of showing that the taxpayer was involved in an intentional tax-avoidance scheme. Hogan J found it unnecessary to consider whether a concurring opinion was binding, as the taxpayer's version of events strained credulity, and did not demolish Minister's assumption that the taxpayer participated in a scheme entailing a collateral arrangement to avoid tax.

Administrative Policy

28 April 1995 T.I. 950108 (C.T.O. "Transfer of RRSP Funds to Charity Issued Annuity")

Where an amount paid by an RRSP for an annuity issued by a charity exceeds the fair market value of the annuity, the difference will be included in the income of the annuitant in the year of acquisition.

30 January 1995 T.I. 943068 (C.T.O. "RRSP Qualified Investments - Puts & Calls")

It is the Departmental practice not to apply the provisions of s. 146(9) to an annuitant where an RRSP has written a covered call option and the holder of the covered call option in fact exercises her right to purchase under the option.

27 October 1994 T.I. 942710 (C.T.O. "Options as RRSP Qualified Investments")

RC does not apply s. 146(9) to the writing of covered call options by an RRSP.

19 May 1993 T.I. (Tax Window, No. 31, p. 5, ¶2512)

S.146(9) will not be applied to the annuitant where a security of an RRSP is disposed of as a result of a covered call option previously written by the RRSP being exercised.

10 July 1992 External T.I. 5-921881 -

Where an RRSP holds a mortgage that is subject to proceedings pursuant to a power of sale, the RRSP should proceed in the same manner as any other reasonable person in the circumstances. Where business practice dictates awaiting the outcome of the power of sale proceedings, the same procedure should be followed by the RRSP.

Articles

Singer, "RRSPs Can Invest in a Wide Range of Equities", Taxation of Executive Compensation and Retirement, April 1990, p. 259

Although the writing of call options can run into technical difficulties where the RRSP is obliged to sell stock pursuant to its obligation under the call option, and the RRSP sells the property at an under value, RC has stated that it will not apply this rule in connection with covered call options.

Subsection 146(10) - Property used as security for loan

Cases

Caisse populaire Desjardins de Val-Brillant v. Blouin, 2003 DTC 5420, 2003 SCC 31, [2003] 1 S.C.R. 666

Deschamps J. (in dissenting reasons with which the majority agreed) stated (at p. 5431) that: "there is no prohibition on using the monies held in a trust RRSP as security" and that "if the trust (in Quebec, the trustee) permits property to be used as security for a loan, the fair market value of the property must be included in computing the income of the annuitant", as was done in this case."

Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Provincial Law 76

See Also

Lavoie v. The Queen, 2009 DTC 998, 2009 TCC 293 (Informal Procedure), aff'd 2010 DTC 5171 [at 7303], 2010 FCA 266

The OSC reached settlements with two mutual fund management companies, in respect of their conduct in overstating the net asset values of funds managed by them, which provided for the payments by the companies to unitholders of the mutual funds in question, including, in the case of registered retirement savings plans, payments directly to the unitholders. In finding that resulting funds received by the taxpayer were taxable benefits to him, Bowie, J. noted the broad meaning of the word "under" in the English version definition of "benefit" under s. 146(1), and stated (at para. 16) that "applying a surrogatum principle to the payments leads me to conclude that when the Appellant cashed the cheques and applied the funds to purposes other than restoring the value of the fund holdings in his RRSPs then those amounts fell to be treated as amounts received by him in the year as benefits out of or under his RRSPs ...".

Dubuc c. La Reine, 2005 DTC 461, 2004 TCC 164 (Informal Procedure)

The taxpayer had her RRSP purchase shares of a corporation that were not a qualified investment, and had her RRSP guarantee a loan made to her by the corporation of a substantial portion of the funds paid to it. She did not expect to repay the loan.

The Minister correctly added the fair market value of the RRSP to her income.

Administrative Policy

7 January 2003 External T.I. 2002-015137 -

Where an annuitant transfers property that is a non-qualified investment which is subject to s. 207.1(1) of the Act to another of his or her RRSPs, the transferred property will cease to be subject to s. 207.1(1) and will be subject to s. 146(10).

11 October 2000 External T.I. 2000-004025 -

By virtue of ss.146(6) and (10), there are generally no income tax implications for annuitants when foreign currency is disposed of within the same calendar year and there has been no fluctuation in the exchange rate. Accordingly, the "Agency will not apply these provisions where foreign currency is converted to Canadian currency or is used to acquire a qualified investment within a reasonable period of time (usually one month)".

8 June 1999 External T.I. 5-990650 -

A put option is a non-qualified investment. However, as the writing of a put option does not entail an acquisition of property, s. 146(10) does not apply unless, under the agreement, the RRSP is required to leave margin on deposit with a broker to cover the possible exercise of the option.

30 January 1995 T.I. 943068 (C.T.O. "RRSP Qualified Investments - Puts & Calls")

Where cash is deposited as margin with a broker then, notwithstanding that such deposit would not be a qualified investment under s. 204(e)(i), s. 146(10) will not be applied to the annuitant if the transaction is concluded within a few days. Similar considerations apply where the RRSP is required to leave cash as margin on deposit with a broker to cover the possible exercise of a put option that the RRSP has written.

23 March 1994 T.I. 940596 (C.T.O. "Mortgage in RRSP")

Although real property is not a qualified investment for an RRSP, RC is prepared not to apply either s. 146(10) or 207.1(1) where an RRSP acquires real estate through foreclosure or other procedures that are necessary to protect the mortgage investment and as a result of default or other actions of the mortgagor, the original mortgage investment was a qualified investment, and the RRSP holds the real property in the trust for the sole purpose of disposing of it and in fact does so within a reasonable period of time (such as one year).

1 June 1993 External T.I. 5-930642 -

"It is our view that paragraph 146(4)(a) and subsection 146(10) of the Act do not apply where a RRSP buys shares payable on an instalment basis because an obligation to pay instalments does not constitute a loan or borrowed money with a relationship of lender and borrower between the parties."

19 May 1993 T.I. (Tax Window, No. 31, p. 5, ¶2512)

The transfer, following the writing by an RRSP of a covered call option, of the underlying securities to a broker or a dealer until the option is exercised or expires will not be considered to be the borrowing of money on the security of those investments for the purposes of s. 146(10)(b).

27 June 1991 T.I. (Tax Window, No. 4, p. 30, ¶1319)

RC will not apply s. 146(10) or s. 207.1(1) if an RRSP acquires real property as a result of foreclosure of a mortgage that was qualified property as a consequence of the default of the mortgagor, provided that the trust deed disposes of the property within a reasonable period (such as one year).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.1 - Subsection 207.1(1) 51

Articles

Singer, "Mortgages with Equity Tickers May Qualify as RRSP Investment", Taxation of Executive Compensation and Retirement, May 1990, p. 283.

RC will not insist on the inclusion of the fair market value of real property acquired on foreclosure if the foreclosure was necessary to protect the RRSP's investment, and resulted from actions or defaults on the part of the mortgagor, and provided further that the property is disposed of within a reasonable period of time.

Subsection 146(10.1) - Where tax payable

Administrative Policy

S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Calculation of income

1.76 A trust governed by an RRSP, TFSA, RRIF or RDSP is taxable under Part I on any income it earns in a tax year from non-qualified investments in accordance with subsection 146(10.1), 146.2(6) or 146.3(9) or paragraph 146.4(5)(b), respectively. For this purpose, income tax is payable on the trust’s adjusted taxable income which is calculated using only the income or loss from non-qualified investments and the full capital gain or capital loss from the disposition of non-qualified investments. The adjusted taxable income also includes capital dividends described in section 83.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 204 - qualified investment - (a) 208
Tax Topics - Income Tax Act - Section 262 113
Tax Topics - Income Tax Act - Section 204 - qualified investment - (d) 320
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) 256
Tax Topics - Income Tax Act - Section 204.4 - Subsection 204.4(1) 107
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(2) 52
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) 149
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j.1) 53
Tax Topics - Income Tax Act - Section 204 - qualified investment - (b) 55
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(e) 173
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) 69
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(u) 80
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(v) 50
Tax Topics - Income Tax Regulations - Regulation 4901 - Subsection (1) - Specified small business corporation 38
Tax Topics - Income Tax Regulations - Regulation 5100 - Eligible Corporation 44
Tax Topics - Income Tax Act - Section 207.04 - Subsection 207.04(4) 82
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(6) 110
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(a) 118
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(b) 94
Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(6) 156

4 December 2014 External T.I. 2014-0529681E5 - Non-qualified investments acquired by RRSP Trust

non-qualified stock dividend on qualified or non-qualified shares

1. An RRSP trust, which holds shares of Company A that are a non-qualified investment, receives a stock dividend comprising additional shares of the same class. 2. The RRSP trust holds shares of Company X, which are a qualified investment, and receives thereon a dividend in kind of shares of Company Y that are a non-qualified investment. Does s. 146(10.1) or 207.04(1) apply? CRA responded:

In Scenario 1, because the shares of Company A are non-qualified investments, the RRSP trust will be subject to Part I tax pursuant to subsection 146(10.1)… in respect of its income from the stock dividends paid by those shares. In addition, the annuitant of the RRSP will be liable for the tax payable on non-qualified investments… pursuant to subsection 207.04(2)…, the… tax payable is equal to 50% of the fair market value of the additional Company A shares at the time they are received… .

In Scenario 2, the annuitant of the RRSP will be liable to pay the 50% tax payable under subsection 207.04(1) of the Act subject to a possible refund of the tax pursuant to subsection 207.04(4) of the Act as a result of the RRSP trust's acquisition of the non-qualified Company Y shares. Because the shares of Company X are qualified investments, the RRSP trust will not be required to pay Part I tax under subsection 146(10.1)… . in respect of… the in-kind dividend of Company Y shares;

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.04 - Subsection 207.04(2) non-qualified stock dividend on qualified or non-qualified shares 222

12 July 2013 External T.I. 2012-0447191E5 - RRSP trust taxation under 146(10.1)

gain due to ACB grind

An RRSP acquired shares after March 23, 2011, which were listed on a foreign designated stock exchange and were worth $43 per share, but then became delisted (and, thus, non-qualified investment for the RRSP) when they were worth $11. They then were sold for $29 per share.

In intimating that the RRSP had a gain of $18 per share which was taxable under s. 146(10.1), CRA referred to the rule in draft s. 207.01(6) deeming the shares to have been disposed of and reacquired at $11.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(6) gain due to ACB grind 77

Subsection 146(16) - Transfer of funds

Administrative Policy

7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 5, 2016-0651721C6 F - Application of subsections 146(16) and 73(1) after death

no tax deferred transfer if by estate

Mr agreed in his separation agreement with Mrs to transfer to her the property in his RRSP. However, he died before the transfer was made. Does CRA still consider that s. 146(16) does not apply following death? CRA responded:

The CRA continues to be of the view that a transfer under paragraph 146(16)(b) is not possible where the annuitant or the former common-law partner dies before the transfer referred to in this paragraph is completed.

When queried on this, a Finance representative stated:

The Department of Finance is ready to consider the issue identified in the question to determine whether the rules give rise to anomalies in certain circumstances in tax policy terms, in the context of its on-going revision of the ITA rules.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) no rollover if transferor spouse dies before transfer pursuant to separation agreement made 142

30 January 1990 T.I. (June 1990 Access Letter, ¶1276)

The rollover in s. 146(16) was available to spouses separate as to bed and board.

Paragraph 146(16)(b)

Administrative Policy

6 October 2017 APFF Financial Strategies and Financial Instruments Roundtable Q. 1, 2017-0705221C6 F - Property transfers - common law partners in Québec

a common-law partners’ separation agreement can engage s. 146(16)(b) or 146.3(14) rollover even if technically they have no legal rights to settle

2005-0134081E5 indicated that two Quebec common-law partners [“conjoints de fait” - also translatable as de facto spouses] can, on the break-down of their relationship, engage s. 146(16)(b) pursuant to a written separation agreement governing the division of their assets in settlement of their rights arising on the breakdown. However, the absence of legal rights in Quebec respecting a common-law union (see Éric v. Lola, 2013 SCC 5) might indicate that there are no such rights to settle. Does CRA consider that the rollovers under ss. 73(1), 146(16) or 146.3(14) can apply where (a) at the time of their separation, they sign a written agreement governing the division of their assets, or (b) the same as (a) except that the division under such agreement is governed by a common-law “union” agreement concluded years previously? CRA responded:

This Technical Interpretation was effectively based on the premise that, although there is no right under the Civil Code of Québec arising out of a common-law partnership, it is not impossible for the annuitant to determine to create rights under a written separation agreement between the annuitant and the annuitant’s common-law partner or former common-law partner relating to the division of property.

... Éric v. Lola case does not change the position of the CRA.

...Such an agreement could be concluded at the time of separation, whether or not a common-law union agreement providing for the rights of each in the event of the union's failure has been previously signed.

The same reasoning applies in our view to the rollover rules in subsections 73(1) and 146.3(14).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) rollover under common-law partners' separation agreement irrespective of whether technically they have separation rights to settle 138
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(14) rollover pursuant to common-law partners' settlement agreement 96