Income Tax Act — I-3.3 146.3
ayer’s income by virtue of that subsection before premiums or parts thereof paid by the taxpayer after that time. Spouse’s income (5.4) Where, in respect of an amount required at any time in a taxation year to be included in computing the income of a taxpayer’s spouse, all or part of a premium has, by reason of subsection 146.3(5.1), been included in computing the taxpayer’s income for the year, the following rules apply: (a) the premium or part thereof, as the case may be, shall, for the purposes of subsections 146.3(5.1) and 146(8.3) after that time, be deemed not to have been a premium paid to a registered retirement savings plan under which the taxpayer’s spouse was the annuitant (within the meaning assigned by subsection 146(1)); and (b) an amount equal to the premium or part thereof, as the case may be, may be deducted in computing the income of the spouse for the year. Where s. (5.1) does not apply (5.5) Subsection 146.3(5.1) does not apply (a) in respect of a taxpayer at any time during the year in which the taxpayer dies; (b) in respect of a taxpayer where either the taxpayer or the annuitant is a non-resident at the particular time referred to in that subsection; (c) to any payment that is received in full or partial commutation of a registered retirement savings plan or a registered retirement income fund and in respect of which a deduction was made under paragraph 60(l) if, where the deduction was in respect of the acquisition of an annuity, the terms of the annuity provide that it cannot be commuted, and it is not commuted, in whole or in part within 3 years after the acquisition; or (d) in respect of an amount that is deemed by subsection 146.3(6) to have been received by an annuitant under a registered retirement income fund immediately before the annuitant’s death. Where last annuitant dies (6) Where the last annuitant under a registered retirement income fund dies, that annuitant shall be deemed to have received, immediately before death, an amount out of or under a registered retirement income fund equal to the fair market value of the property of the fund at the time of the death. Designated benefit deemed received (6.1) A designated benefit of an individual in respect of a registered retirement income fund that is received by the legal representative of the last annuitant under the fund shall be deemed (a) to be received by the individual out of or under the fund at the time it is received by the legal representative; and (b) except for the purpose of the definition designated benefit in subsection 146.3(1), not to be received out of or under the fund by any other person. Transfer of designated benefit (6.11) For the purpose of subparagraph 60(l)(v), the eligible amount of a particular individual for a taxation year in respect of a registered retirement income fund is nil unless the particular individual was (a) a spouse or common-law partner of the last annuitant under the fund, or (b) a child or grandchild of that annuitant who was dependent because of physical or mental infirmity on that annuitant, in which case the eligible amount shall be determined by the formula A × [1 - ((B - C) / D)] where A is the portion of the designated benefit of the particular individual in respect of the fund that is included because of subsection 146.3(5) in computing the particular individual’s income for the year, B is the minimum amount under the fund for the year, C is the lesser of (a) the total amounts included because of subsection 146.3(5) in computing the income of an annuitant under the fund for the year in respect of amounts received by the annuitant out of or under the fund, and (b) the minimum amount under the fund for the year, and D is the total of all amounts each of which is the portion of a designated benefit of an individual in respect of the fund that is included because of subsection 146.3(5) in computing the individual’s income for the year. Amount deductible (6.2) There may be deducted from the amount