Income Tax Act — I-3.3 61
Payment made as consideration for income-averaging annuity 61 (1) In computing the income for a taxation year of an individual resident in Canada, there may be deducted an amount equal to the lesser of (a) such amount as the individual may claim, not exceeding the total of amounts each of which is a single payment (i) made by the individual in the year or within 60 days after the end of the year as consideration for an income-averaging annuity contract of the individual, and (ii) in respect of which no amount has been deducted in computing the individual’s income for the immediately preceding taxation year, and (b) the amount, if any, by which the total of (i) the remainder obtained when the total of the amounts deductible in computing the individual’s income for the year by reason of paragraphs 60(j) and 60(l) of this Act and paragraph 60(k) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, is deducted from the total of amounts described in subsection 61(2) in respect of the individual for the year, (ii) the amount, if any, by which the amount determined under paragraph 3(b) in respect of the individual for the year exceeds the total of amounts each of which is an allowable business investment loss of the individual for the year, (iii) the individual’s income for the year from the production of a literary, dramatic, musical or artistic work, (iv) the individual’s income for the year from the individual’s activities as an athlete, a musician or a public entertainer such as a theatre, motion picture, radio or television artist, and (iv.1) the amount, if any, by which the amount included in computing the income of the individual for the year by virtue of section 59 exceeds the total of amounts deducted in computing the individual’s income for the year under sections 64, 66, 66.1, 66.2 and 66.4 and under section 29 of the Income Tax Application Rules , exceeds (v) the total of amounts each of which is the annual annuity amount of the individual in respect of an income-averaging annuity contract in respect of the consideration for which any amount has been deducted under this subsection in computing the individual’s income for the year. Idem (2) For the purposes of subsection 61(1), an amount described in this subsection in respect of an individual for a taxation year is any following amount: (a) any single payment received by the individual in the year (i) out of or under a superannuation or pension fund or plan (A) on the death, withdrawal or retirement from employment of an employee or former employee, (B) on the winding-up of the fund or plan in full satisfaction of all rights of the payee in or under the fund or plan, or (C) to which the payee is entitled by virtue of an amendment to the plan although the payee continues to be an employee to whom the plan is applicable, (ii) on retirement as an employee in recognition of long service and not made out of or under a superannuation fund or plan, (iii) pursuant to an employees profit sharing plan in full satisfaction of all the individual’s rights in or under the plan, to the extent that the amount thereof is required to be included in computing the individual’s income for the year in which the payment was received, or (iv) pursuant to a deferred profit sharing plan on the death, withdrawal or retirement from employment of an employee or former employee, to the extent that the amount thereof is required to be included in computing the individual’s income for the year; (b) a payment or payments made by an employer to the individual as an employee or former employee on or after retirement in respect of loss of office or employment, if made in the year of retirement or within one year after that year; (c) a payment or payments paid to the individual as a death benefit, if paid in the year of death or within one year after that year; (d) any amount included in computing the individual’s income for the year by virtue of subsection 146(8), to the extent that