Income Tax Act — I-3.3 146.3
ket 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 (8) [Repealed, 2011, c. 24, s. 49] Tax payable on income from non-qualified investment (9) If a trust that is governed by a registered retirement income fund holds, at any time in a taxation year, a property that is not a qualified investment, (a) tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than the property that is not a qualified investment or no capital gains or capital losses other than from the disposition of that property, as the case may be; and (b) for the purposes of paragraph 146.3(9)(a), (i) income includes dividends described in section 83, and (ii) paragraphs 38(a) and (b) are to be read as if the fraction set out in each of those paragraphs were replaced by the word “all”. Recovery of property used as security (10) Where at any time in a taxation year a loan for which a trust governed by a registered retirement income fund has used or permitted to be used trust property as security ceases to be extant, and the fair market value of the property so used was included by virtue of subsection 146.3(7) in computing the income of a taxpayer who was the annuitant under the fund, there may be deducted in computing the income for a taxation year of the taxpayer who is at that time the annuitant, an amount equal to the amount, if any, remaining when (a) the net loss (exclusive of payments by the trust as or on account of interest) sustained by the trust in consequence of its using or permitting to be used the property as security for the loan and not as a result of a change in the fair market value of the property is deducted from (b) the amount so included in computing the income of a taxpayer in consequence of the trust’s using or permitting to be used the property as security for the loan. Change in fund after registration (11) Where, on any day after a retirement income fund has been accepted by the Minister for registration for the purposes of this Act, the fund is revised or amended or a new fund is substituted therefor, and the fund as revised or amended or the new fund substituted therefor, as the case may be, (in this subsection referred to as the “amended fund”) does not comply with the requirements of this section for its acceptance by the Minister for registration for the purposes of this Act, the following rules apply: (a) the amended fund shall be deemed, for the purposes of this Act, not to be a registered retirement income fund; and (b) the taxpayer who was the annuitant under the fund before it became an amended fund shall, in computing the taxpayer’s income for the taxation year that includes that day, include as income received out of the fund at that time an amount equal to the fair market value of all the property held in connection with the fund immediately before that time. Idem (12) For the purposes of subsection 146.3(11), an arrangement under which a right or obligation under a retirement income fund is released or extinguished either wholly or in part and either in exchange or substitution for any right or obligation, or otherwise (other than an arrangement the sole object and legal effect of which is to revise or amend the fund) or under which payment of any amount by way of loan or otherwise is made on the security of a right under a retirement income fund, shall be deemed to be a new fund substituted for the retirement income fund. (13) [Repealed, 2011, c. 24, s. 49] Transfer on breakdown of marriage or common-law partnership (14) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount (a) is transferred on behalf of an individual who is a spouse or common-law partner or former spouse or common-law partner of the annuitant and who