Income Tax Act — I-3.3 147.2
eceding taxation year, (A) in respect of contributions included in the total determined in respect of the individual for the year under clause 147.2(4)(b)(i)(A), or (B) where the preceding year was before 1987, under subparagraph 8(1)(m)(ii) (as it read in its application to that preceding year) in respect of additional voluntary contributions made in respect of a year that satisfies the conditions in the description of Y, and Service before 1990 while a contributor (c) the lesser of (i) the amount, if any, by which (A) the total of all amounts each of which is a contribution (other than an additional voluntary contribution, a prescribed contribution or a contribution included in the total determined in respect of the individual for the year under clause 147.2(4)(b)(i)(A)) made by the individual in the year or a preceding taxation year and after 1962 to a registered pension plan in respect of a particular year before 1990 that is included, in whole or in part, in the individual’s eligible service under the plan exceeds (B) the total of all amounts each of which is an amount deducted, in computing the individual’s income for a preceding taxation year, in respect of contributions included in the total determined in respect of the individual for the year under clause 147.2(4)(c)(i)(A), and (ii) the amount, if any, by which $3,500 exceeds the total of the amounts deducted by reason of paragraphs 147.2(4)(a) and 147.2(4)(b) in computing the individual’s income for the year. Teachers (5) For the purpose of determining whether a teacher may deduct an amount contributed by the teacher to a registered pension plan in computing the teacher’s income for a taxation year ending after 1990 and before 1995 during which the teacher was employed by Her Majesty or a person exempt from tax for the year under section 149, (a) clause 147.2(4)(b)(i)(A) shall be read without reference to subclauses 147.2(4)(b)(i)(A)(I) and 147.2(4)(b)(i)(A)(II); and (b) the description of Y in subparagraph 147.2(4)(b)(iii) shall be read as follows: “Y is the number of calendar years before 1990 each of which is a year all or any part of which is included in the individual’s eligible service under a registered pension plan to which the individual has made a contribution that is included in the total determined under clause 147.2(5)(b)(i)(A), and” Deductible contributions when taxpayer dies (6) Where a taxpayer dies in a taxation year, for the purpose of computing the taxpayer’s income for the year and the preceding taxation year, (a) paragraph 147.2(4)(b) shall be read without reference to subparagraph 147.2(6)(a)(ii) and as if the reference to “the least of” were a reference to “the lesser of”; and (b) paragraph 147.2(4)(c) shall be read without reference to subparagraph 147.2(6)(b)(ii) and the words “the lesser of”. Letter of credit (7) For the purposes of this section and any regulations made under subsection 147.1(18) in respect of eligible contributions, an amount paid to a registered pension plan by the issuer of a letter of credit issued in connection with an employer’s funding obligations under a defined benefit provision of the plan is deemed to be an eligible contribution made to the plan in respect of the provision by the employer with respect to the employer’s employees or former employees, if (a) the amount is paid under the letter of credit; (b) the use of the letter of credit is permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province; and (c) the amount would have been an eligible contribution under subsection (2) if (i) it had been paid to the plan by the employer, and (ii) this section were read without reference to this subsection. Former employee of predecessor employer (8) For the purposes of this section and any regulations made under subsection 147.1(18) in respect of eligible contributions, a former employee of a predecessor employer (as defined by regulation) of a participating employer in relation to a pension