Income Tax Act — I-3.3 147
ere paragraph 147(14)(c.4) applies, as of the end of the year for which the requirements of subsection 147(5.1) in respect of the plan are not satisfied, or any subsequent date, and (j) where paragraph 147(14)(c.5) applies, as of any date after the date by which the information return was required to be filed, and the Minister shall thereafter give notice of the revocation by registered mail to a trustee under the plan and to an employer of employees who are beneficiaries under the plan. Idem (14.1) Where on any day after June 30, 1982 a benefit or loan is extended or continues to be extended as a consequence of the existence of a deferred profit sharing plan and that benefit or loan would be prohibited if the plan met the requirement for registration contained in paragraph 147(2)(k.1), the Minister may revoke the registration of the plan as of that or any subsequent day that is specified by the Minister in a notice given by registered mail to a trustee under the plan and to an employer of employees who are beneficiaries under the plan. Rules applicable to revoked plan (15) Where the Minister revokes the registration of a deferred profit sharing plan, the plan (in this section referred to as the “revoked plan”) shall be deemed, for the purposes of this Act, not to be a deferred profit sharing plan, and notwithstanding any other provision of this Act, the following rules shall apply: (a) the revoked plan shall not be accepted for registration for the purposes of this Act or be deemed to have become registered as a deferred profit sharing plan at any time within a period of one year commencing on the date the plan became a revoked plan; (b) subsection 147(7) does not apply to exempt the trust governed by the plan from tax under this Part on the taxable income of the trust for a taxation year in which, at any time therein, the trust was governed by the revoked plan; (c) no deduction shall be made by an employer in computing the employer’s income for a taxation year in respect of an amount paid by the employer to a trustee under the plan at a time when it was a revoked plan; (d) there shall be included in computing the income of a taxpayer for a taxation year (i) all amounts received by the taxpayer in the year from a trustee under the revoked plan that, by virtue of subsection 147(10), would have been so included if the revoked plan had been a deferred profit sharing plan at the time the taxpayer received those amounts, and (ii) the amount or value of any funds or property appropriated to or for the benefit of the taxpayer in the year that, by virtue of subsection 147(13), would have been so included if the revoked plan had been a deferred profit sharing plan at the time of the appropriation of the funds or property; and (e) the revoked plan shall be deemed, for the purposes of this Act, not to be an employees profit sharing plan or a retirement compensation arrangement. Payments out of profits (16) Where the terms of an arrangement under which an employer makes payments to a trustee specifically provide that the payments shall be made “out of profits”, the arrangement shall be deemed, for the purpose of subsection 147(1), to be an arrangement for payments “computed by reference to an employer’s profits from the employer’s business”. Interpretation of other beneficiary (17) Where the expression “employee or other beneficiary” under a profit sharing plan occurs in this section, the words other beneficiary shall be construed as meaning any person, other than the employee, to whom any amount is or may become payable by a trustee under the plan as a result of payments made to the trustee under the plan in trust for the benefit of employees, including the employee. Inadequate consideration on purchase from or sale to trust (18) Where a trust governed by a deferred profit sharing plan or revoked plan (a) disposes of property to a taxpayer for a consideration less than the fair market value of the property at the time of the transaction