Income Tax Act — I-3.3 146.3
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 deemed by subsection 146.3(6) to be received by an annuitant out of or under a registered retirement income fund an amount not exceeding the amount determined by the formula A × [1 - ((B + C - D) / (B + C))] where A is the total of (a) all designated benefits of individuals in respect of the fund, (b) all amounts that would, if the fund were a registered retirement savings plan, be tax-paid amounts (in this subsection having the meaning assigned by subsection 146(1)) in respect of the fund received by individuals who received, otherwise than because of subsection 146.3(6.1), designated benefits in respect of the fund, and (c) all amounts each of which is an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount in respect of the fund received by the legal representative of the last annuitant under the fund, to the extent that the legal representative would have been entitled to designate that tax-paid amount under paragraph (a) of the definition designated benefit in subsection 146.3(1) if tax-paid amounts were not excluded in determining refunds of premiums (as defined in subsection 146(1)); B is the fair market value of the property of the fund at the particular time that is the later of (a) the end of the first calendar year that begins after the death of the annuitant, and (b) the time immediately after the last time that any designated benefit in respect of the fund is received by an individual; C is the total of all amounts paid out of or under the fund after the death of the last annuitant thereunder and before the particular time; and D is the lesser of (a) the fair market value of the property of the fund at the time of the death of the last annuitant thereunder, and (b) the sum of the values of B and C in respect of the fund. Deduction for post-death reduction in value (6.3) If the last annuitant under a registered retirement income fund dies, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the fund have been paid, by the formula A – B where A is the total of all amounts each of which is (a) the amount deemed by subsection (6) to have been received by the annuitant out of or under the fund, (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer out of or under the fund and included, because of subsection (5), in computing the taxpayer’s income, or (c) an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount (within the meaning assigned by subsection 146(1)) in respect of the fund; and B is the total of all amounts paid out of or under the fund after the death of the annuitant. Subsection (6.3) not applicable (6.4) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (6.3) in respect of a registered retirement income fund, that subsection does not apply if (a) at any time after the death of the annuitant, a trust governed by the fund held an investment that is not a qualified investment; or (b) the last payment out of or under the fund was made after the end of the year following the year in which the annuitant died. Property used as security for loan (7) If at any time in a taxation year a trust governed by a registered retirement income fund uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the year of the taxpayer who is the annuitant under the fund at that time. (8) [Repealed,