Income Tax Act — I-3.3 147
ust 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, or for no consideration, or (b) acquires property from a taxpayer for a consideration greater than the fair market value of the property at the time of the transaction, the difference between that fair market value and the consideration, if any, (c) shall, for the purposes of subsections 147(10) and 147(15), be deemed to be an amount received by the taxpayer at the time of the disposal or acquisition, as the case may be, from a trustee under the plan as if the taxpayer were a beneficiary under the plan, and (d) is an amount taxable under section 201 for the calendar year in which the trust disposes of or acquires the property, as the case may be. Transfer to RPP, RRSP or DPSP (19) An amount is transferred from a deferred profit sharing plan in accordance with this subsection if the amount (a) is not part of a series of periodic payments; (b) is transferred on behalf of an individual (i) who is an employee or former employee of an employer who participated in the plan on the employee’s behalf, or (ii) who is a spouse or common-law partner, or former spouse or common-law partner, of an employee or former employee referred to in subparagraph (i) and who is entitled to the amount (A) as a consequence of the death of the employee or former employee, or (B) 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 the employee or former employee and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership; in full or partial satisfaction of the individual’s entitlement to benefits under the plan; (c) would, if it were paid directly to the individual, be included under subsection 147(10) in computing the individual’s income for a taxation year; and (d) is transferred for the benefit of the individual directly to (i) a registered pension plan, (ii) a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)), (iii) a deferred profit sharing plan that can reasonably be expected to have at least 5 beneficiaries at all times throughout the calendar year in which the transfer is made, (iv) a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)), or (v) a licensed annuities provider to acquire an advanced life deferred annuity, if the individual is an employee or former employee of an employer who participated in the plan on the employee’s behalf. Taxation of amount transferred (20) Where an amount is transferred on behalf of an individual in accordance with subsection 147(19), (a) the amount shall not, by reason only of that transfer, be included by virtue of this section in computing the income of any taxpayer; and (b) no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer. Restriction re transfers (21) A deferred profit sharing plan becomes a revocable plan at any time that an amount is transferred from the plan to a registered pension plan, a registered retirement savings plan or another deferred profit sharing plan unless (a) the transfer is in accordance with subsection 147(19); or (b) the amount is deductible under paragraph 60(j) or 60(j.2) of this Act or paragraph 60(k) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, by the individual on whose behalf the transfer is made. Excess transfer (22) Where (a) the transfer of an amount from a deferred profit sharing plan in a calendar year on behalf of a beneficiary under the plan would, but for this subsection, be in accordance with subsection 147(19), and (b) the requirements of subsection 147(5.1) in res