Income Tax Act — I-3.3 207.01
et value of the property at the transfer time. Breakdown of marriage or common-law partnership (11) If this subsection applies in respect of a property, (a) the property is deemed to be, at and after the transfer time, a property that was held on March 22, 2011 by a trust governed by a RRIF or RRSP of the recipient and that was a prohibited investment for the trust on March 23, 2011; (b) where the property would, in the absence of this paragraph, not be a prohibited investment for the recipient trust immediately after the transfer time, the property is deemed to be a prohibited investment at and after the transfer time for every trust governed by a RRIF or RRSP of the recipient; (c) the recipient is deemed to have elected under subsection 207.05(4); and (d) notwithstanding any other provision of this Act, the designated amount is deemed to be (i) the proceeds of disposition to the transferor trust from the transfer described in paragraph (10)(a), and (ii) the cost of the property to a trust governed by a RRIF or RRSP of the recipient until the property is disposed of by the trust. Exchange of property (12) Subsection (13) applies in respect of a property other than money if (a) the property is acquired at any time (in this subsection and subsection (13) referred to as the “exchange time”) by a trust (in this section and subsection (13) referred to as the “exchanging trust”) governed by a registered plan (other than a TFSA) of a controlling individual in exchange for another property (in this subsection referred to as the “exchanged property”) in a transaction to which any of section 51, subsection 85(1) and sections 85.1, 86 and 87 apply; (b) the exchanged property is a prohibited investment, and a transitional prohibited property, for the exchanging trust immediately before the exchange time; (c) the property is, or would be, if subsection 4900(14) of the Income Tax Regulations were read without reference to its paragraph (b), a qualified investment for the exchanging trust immediately after the exchange time; and (d) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4). Exchange of property (13) If this subsection applies in respect of a property, (a) other than for the purposes of subsection (7), the property is deemed to be, at and after the exchange time, a property, (i) in the case of a trust governed by a RRIF or RRSP, that was (A) held on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual referred to in subsection (12), and (B) a prohibited investment for the trust on March 23, 2011, and (ii) in the case of a trust governed by a RDSP or RESP, that was (A) held on March 22, 2017 by a trust governed by a RDSP or RESP of the controlling individual referred to in subsection (12), and (B) a prohibited investment for the trust on March 23, 2017; and (b) if the property would, in the absence of this paragraph, not be a prohibited investment for the exchanging trust immediately after the exchange time, the property is deemed to be a prohibited investment at and after the exchange time for every trust governed by a registered plan (other than a TFSA) of the controlling individual. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2008, c. 28, s. 31; 2009, c. 2, s. 68; 2010, c. 25, s. 57; 2011, c. 24, s. 64; 2013, c. 40, s. 74; 2015, c. 36, s. 19; 2016, c. 11, s. 9; 2017, c. 33, s. 68 2022, c. 19, s. 50 2023, c. 26, s. 60 2024, c. 15, s. 55 2024, c. 17, s. 65 2026, c. 3, s. 83