Income Tax Act — I-3.3 146
 the taxpayer at any time shall be deemed to have been included in computing the taxpayer’s income by virtue of that subsection before premiums or parts thereof paid by the taxpayer after that time. Spouse’s income (8.6) 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 or common-law partner, all or part of a premium has by reason of subsection 146(8.3) 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(8.3) and 146.3(5.1) after that time, be deemed not to have been a premium paid to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant; 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 or common-law partner for the year. Where s. (8.3) does not apply (8.7) Subsection 146(8.3) does not apply (a) in respect of a taxpayer at any time during the year in which the taxpayer died; (b) in respect of a taxpayer where either the taxpayer or the taxpayer’s spouse or common-law partner is a non-resident at the particular time referred to in that subsection; (c) in respect of amounts paid out of or under a plan referred to in subsection 146(12) as an “amended plan” to which paragraph 146(12)(a) applied before May 26, 1976; (d) to any payment that is received in full or partial commutation of a registered retirement income fund or a registered retirement savings plan 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 (e) in respect of an amount that is deemed by subsection 146(8.8) to have been received by an annuitant under a registered retirement savings plan immediately before the annuitant’s death. Effect of death where person other than spouse becomes entitled (8.8) Where the annuitant under a registered retirement savings plan (other than a plan that had matured before June 30, 1978) dies after June 29, 1978, the annuitant shall be deemed to have received, immediately before the annuitant’s death, an amount as a benefit out of or under a registered retirement savings plan equal to the amount, if any, by which (a) the fair market value of all the property of the plan at the time of death exceeds (b) where the annuitant died after the maturity of the plan, the fair market value at the time of the death of the portion of the property described in paragraph 146(8.8)(a) that, as a consequence of the death, becomes receivable by a person who was the annuitant’s spouse or common-law partner immediately before the death, or would become so receivable should that person survive throughout all guaranteed terms contained in the plan. Idem (8.9) There may be deducted from the amount deemed by subsection 146(8.8) to have been received by an annuitant as a benefit out of or under a registered retirement savings plan 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 refunds of premiums in respect of the plan, (b) all tax-paid amounts in respect of the plan paid to individuals who, otherwise than because of subsection 146(8.1), received refunds of premiums in respect of the plan, and (c) all amounts each of which is a tax-paid amount in respect of the plan paid to the legal representative of the annuitant under the plan, to the extent that the legal representative would have been entitled to designate that tax-paid amount under subsection 146(8.1) if tax-paid amounts were not excluded in determining refunds of premiums; B is the fair market value of the property of the plan at the particular tim