Income Tax Act — I-3.3 146.5
 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 ) Taxable amount — annuity payments (2) Amounts (excluding amounts described in paragraph (f) or (g) of the definition advanced life deferred annuity in subsection (1) and including amounts deemed to have been received under paragraph (7)(a)) received by a taxpayer in a taxation year under an advanced life deferred annuity shall be included in computing the income of the taxpayer for the taxation year. Taxable amount — death benefits (3) Amounts described in paragraph (f) of the definition advanced life deferred annuity in subsection (1) received by a taxpayer in a taxation year under an advanced life deferred annuity as a result of the death of an individual shall be included in computing the income of (a) the taxpayer for the taxation year, if the taxpayer is (i) the spouse or common-law partner of the individual, or (ii) a child or grandchild of the individual who was, immediately before the death of the individual, financially dependent on the individual for support; and (b) the individual for the taxation year in which the individual died, in any other case. Taxation of refunds (4) The amount of a refund described in clause (g)(ii)(A) of the definition advanced life deferred annuity in subsection (1) that is paid to an annuitant shall be included in the income of the annuitant. Treatment of amount transferred (5) If an amount is paid in circumstances described in clause (g)(ii)(B) of the definition advanced life deferred annuity in subsection (1), (a) the amount shall not, by reason only of that payment, be included by reason of paragraph 56(1)(z.5) in computing the income of any taxpayer; (b) no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer; (c) in the case of an amount paid to a registered pension plan, the amount is deemed not to be a contribution for the purpose of applying Parts LXXXIII and LXXXV of the Income Tax Regulations ; and (d) in the case of an amount paid to a registered retirement savings plan or a pooled registered pension plan, the amount shall not be included in determining the amount of the individual’s undeducted RRSP premiums under subsection 204.2(1.2). Deemed payment to beneficiary (6) An amount is deemed to have been received at a particular time by a beneficiary (as defined in subsection 108(1)) of a deceased annuitant’s estate, and not by the legal representative of the deceased annuitant, if (a) the amount is described in paragraph (f) of the definition advanced life deferred annuity in subsection (1); (b) the amount was paid to the legal representative; (c) the beneficiary is described in paragraph (3)(a); (d) the beneficiary is entitled to the amount in full or partial satisfaction of their rights as a beneficiary under the deceased annuitant’s estate; and (e) the amount is designated jointly by the legal representative and the beneficiary in prescribed form filed with the Minister. Amended contract (7) If an amendment made at any time to a contract results in it no longer meeting the conditions in the definition advanced life deferred annuity in subsection (1), the following rules apply: (a) the annuitant under the contract immediately before that time is deemed to have received under the contract at that time an amount equal to the fair market value of their interest in the contract at that time; and (b) the annuitant is deemed to have acquired their interest in the contract at that time at a cost equal to the fair market value of the interest at that time. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2021, c. 23, s. 34