Income Tax Act — I-3.3 147
Definitions 147 (1) In this section, deferred profit sharing plan means a profit sharing plan accepted by the Minister for registration for the purposes of this Act, on application therefor in prescribed manner by a trustee under the plan and an employer of employees who are beneficiaries under the plan, as complying with the requirements of this section; ( régime de participation différée aux bénéfices ) forfeited amount , under a deferred profit sharing plan or a plan the registration of which has been revoked pursuant to subsection 147(14) or 147(14.1), means an amount to which a beneficiary under the plan has ceased to have any rights, other than the portion thereof, if any, that is payable as a consequence of the death of the beneficiary to a person who is entitled thereto by virtue of the participation of the beneficiary in the plan; ( montant perdu ) licensed annuities provider means a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business; ( fournisseur de rentes autorisé ) profit sharing plan means an arrangement under which payments computed by reference to an employer’s profits from the employer’s business, or by reference to those profits and the profits, if any, from the business of a corporation with which the employer does not deal at arm’s length, are or have been made by the employer to a trustee in trust for the benefit of employees or former employees of that employer. ( régime de participation aux bénéfices ) Participating employer (1.1) An employer is considered to participate in a profit sharing plan where the employer makes or has made payments under the plan to a trustee in trust for the benefit of employees or former employees of the employer. Acceptance of plan for registration (2) The Minister shall not accept for registration for the purposes of this Act any profit sharing plan unless, in the Minister’s opinion, it complies with the following conditions: (a) the plan provides that each payment made under the plan to a trustee in trust for the benefit of beneficiaries thereunder is the total of amounts each of which is required to be allocated by the trustee in the year in which it is received by the trustee, to the individual beneficiary in respect of whom the amount was so paid; (a.1) the plan includes a stipulation that no contribution may be made to the plan other than (i) a contribution made in accordance with the terms of the plan by an employer for the benefit of the employer’s employees who are beneficiaries under the plan, or (ii) an amount transferred to the plan in accordance with subsection 147(19); (b) the plan does not provide for the payment of any amount to an employee or other beneficiary thereunder by way of loan; (c) the plan provides that no part of the funds of the trust governed by the plan may be invested in notes, bonds, debentures, bankers’ acceptances or similar obligations of (i) an employer by whom payments are made in trust to a trustee under the plan for the benefit of beneficiaries thereunder, or (ii) a corporation with which that employer does not deal at arm’s length; (d) the plan provides that no part of the funds of the trust governed by the plan may be invested in shares of a corporation at least 50% of the property of which consists of notes, bonds, debentures, bankers’ acceptances or similar obligations of an employer or a corporation described in paragraph 147(2)(c); (e) the plan includes a provision stipulating that no right of a person under the plan is capable of any surrender or assignment other than (i) an assignment under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between an individual and the individual’s spouse or common-law partner, or former spouse or common-law partner, in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership, (ii) an assignment by a dec