Income Tax Act — I-3.3 146.5
Definitions 146.5 (1) The following definitions apply in this section. advanced life deferred annuity means a contract for an annuity that meets the following conditions: (a) it is issued by a licensed annuities provider; (b) it specifies that it is intended to qualify as an advanced life deferred annuity under this Act; (c) periodic annuity payments under the contract (i) commence to be paid no later than the end of the calendar year in which the annuitant attains 85 years of age, and (ii) are payable for the life of the annuitant or for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner; (d) periodic annuity payments under the contract are payable (i) in equal amounts, or (ii) in amounts that are not equal only because the payments (A) are adjusted in whole or in part to reflect (I) increases in the Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act , or (II) increases at a rate specified in the contract, not exceeding 2% per annum, or (B) are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner; (e) if an annuity is payable for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner and the annuitant dies before payments commence to be paid, then the payments to the annuitant’s spouse or common-law partner shall (i) commence no later than the date that they would have commenced if the annuitant were alive, and (ii) be adjusted in accordance with generally accepted actuarial principles if the payments commence before the date they would have commenced if the annuitant were alive; (f) the amount to be paid, if any, to one or more beneficiaries under the contract after the death of the annuitant — or, in the case of a joint-lives annuity, after the last death of the annuitant and the annuitant’s spouse or common-law partner — shall (i) be paid as soon as practicable after the death of the annuitant or the last death of the annuitant and the annuitant’s spouse or common-law partner, as the case may be, and (ii) not exceed the amount, if any, by which the total amount transferred to acquire the annuity exceeds the total amount of annuity payments made under the contract; (g) it provides that all or part of the amount transferred to acquire the annuity may be refunded, if (i) the refund is paid to reduce the amount of tax that would otherwise be payable by the annuitant under Part XI, and (ii) the refund is (A) paid to the annuitant, or (B) transferred directly to (I) the issuer of a registered retirement savings plan of the annuitant, (II) the carrier of a registered retirement income fund of the annuitant, (III) the administrator of a pooled registered pension plan under which the annuitant is a member, or (IV) the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member; (h) if it provides that the spouse or common-law partner may request a payment in a single amount in full or partial satisfaction of the spouse’s or common-law partner’s entitlement to payments described in subparagraph (c)(ii) as a consequence of the death of the annuitant, then the single amount cannot exceed the present value (at the time the single amount is paid) of the other payments that, as a consequence of the payment of the single amount, cease to be provided; (i) no right under the contract is capable of being assigned, charged, anticipated, given as security or surrendered; and (j) it does not provide for any payment under the contract except as specified in this definition. ( rente viagère différée à un âge avancé ) annuitant means an individual who has acquired a contract for an annuity from a licensed annuities provider. ( rentier ) beneficiary , under a contract for an annuity, means an individual who has a right under the contract to receive a payment after the death of the annuitant or the annuitant’s spouse or common-law partner. ( bénéficiaire )