Income Tax Act — I-3.3 146.4
” includes dividends described in section 83, (ii) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition, and (iii) the trust’s income shall be computed without reference to subsection 104(6). Taxation of disability assistance payments (6) Where a disability assistance payment is made from a registered disability savings plan of a beneficiary, the amount, if any, by which the amount of the payment exceeds the non-taxable portion of the payment shall be included, (a) if the beneficiary is alive at the time the payment is made, in computing the beneficiary’s income for the beneficiary’s taxation year in which the payment is made; and (b) in any other case, in computing the income of the beneficiary’s estate for the estate’s taxation year in which the payment is made. Non-taxable portion of disability assistance payment (7) The non-taxable portion of a disability assistance payment made at a particular time from a registered disability savings plan of a beneficiary is the lesser of the amount of the disability assistance payment and the amount determined by the formula A × B/C + D where A is the amount of the disability assistance payment; B is the amount, if any, by which (a) the total of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiary exceeds (b) the total of all amounts each of which is the amount that would be the non-taxable portion of a disability assistance payment made before the particular time from any registered disability savings plan of the beneficiary, if the formula in this subsection were read without reference to the description of D; C is the amount by which the fair market value of the property held by the plan trust immediately before the payment exceeds the assistance holdback amount in relation to the plan; and D is the amount in respect of which a holder of the plan pays a tax under section 207.05 in respect of the plan, or another plan for which the plan was substituted by the holder, that (a) has not been waived, cancelled or refunded; and (b) has not otherwise been used in the year or a preceding year in computing the non-taxable portion of a disability assistance payment made from the plan or another plan for which the plan was substituted. Transfer of funds (8) An amount is transferred from a registered disability savings plan (in this subsection referred to as the “prior plan”) of a beneficiary in accordance with this subsection if (a) the amount is transferred directly to another registered disability savings plan (in this subsection referred to as the “new plan”) of the beneficiary; (b) the prior plan is terminated immediately after the transfer; (c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the specified Minister) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act ; and (d) where the beneficiary attained the age of 59 years before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make (in addition to any other disability assistance payments that would otherwise have been made from the new plan in the year) one or more disability assistance payments from the plan in the year, the total of which is equal to the amount, if any, by which (i) the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurred exceeds (ii) the total amount of disability assistance payments made from the prior plan in the year. No income inclusion on transfer (9) An