Income Tax Act — I-3.3 118.1
ividuals for gifts (3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula A × B + C × D + E × F where A is the appropriate percentage for the year; B is the lesser of $200 and the individual’s total gifts for the year; C is the highest individual percentage for the year; D is (a) in the case of a trust (other than a graduated rate estate or a qualified disability trust as defined in subsection 122(3)), the amount, if any, by which its total gifts for the year exceeds $200, and (b) in any other case, the lesser of (i) the amount, if any, by which the individual’s total gifts for the year exceeds $200, and (ii) the amount, if any, by which the individual’s amount taxable for the year for the purposes of subsection 117(2) exceeds the first dollar amount for the year referred to in paragraph 117(2)(e); E is 29%; and F is the amount, if any, by which the individual’s total gifts for the year exceeds the total of $200 and the amount determined for D. (3.1) and (3.2) [Repealed, 2013, c. 33, s. 10] Gifts — deaths before 2016 (4) If an individual dies before 2016 and any of this subsection and subsections (5), (5.2), (5.3), (7) and (7.1) (as they read for the taxation year in which the death occurred) applied to deem the individual to have made a gift at a time before the death, then for the purposes of this section the gift is deemed not to have been made by any other taxpayer or at any other time. Gifts — deaths after 2015 (4.1) Subsection (5) applies to a gift if an estate arises on and as a consequence of the death after 2015 of an individual and the gift is (a) made by the individual by the individual’s will; (b) deemed by subsection (5.2) to have been made in respect of the death; or (c) made by the estate. Gifts — deaths after 2015 (5) If this subsection applies to a gift, then for the purposes of the Act (other than subsections (4.1) and (5.2)) the gift is deemed to be made (a) by the estate referred to in subsection (4.1) and not by any other taxpayer; and (b) subject to subsection (13), at the time that the property that is the subject of the gift is transferred to the donee and not at any other time. Gifts by graduated rate estate (5.1) This subsection applies to a gift made by an individual’s graduated rate estate (determined without reference to paragraph (a) of the definition graduated rate estate in subsection 248(1)) if the gift is made no more than 60 months after the individual’s death, the death occurs after 2015 and either (a) the gift is deemed by subsection (5.2) to have been made in respect of the death, or (b) the subject of the gift is property that was acquired by the estate on and as a consequence of the death or is property that was substituted for that property. Deemed gifts — eligible transfers (5.2) For the purposes of this section, money or a negotiable instrument transferred to a qualified donee is deemed to be property that is the subject of a gift, in respect of an individual’s death, made to the qualified donee, if the death occurs after 2015 and the transfer is (a) a transfer — other than a transfer the amount of which is not included in computing the income of the individual or the individual’s estate for any taxation year but would have been included in computing the income of the individual or the estate for a taxation year if the transfer had been made to the individual’s legal representative for the estate’s benefit and this Act were read without reference to subsection 70(3) — made (i) as a consequence of the death, (ii) solely because of the obligations under a life insurance policy under which, immediately before the death, the individual’s life was insured, and the individual’s consent would have been required to change the recipient of the transfer, and (iii) from an insurer to a person that is the qualified donee and that was, immedi