Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 7/32)
Character Range: 1399009–1401676

(6).
 (4) If the indexation factor for a year is greater than 1, then the minimum monthly level of support for the year is the amount worked out in accordance with the following formula:
 (5) The results under subsections (3) and (4) must be rounded to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
 (6) The indexation factor for a year must be worked out by reference to figures for the same *quarter (for example, the March quarter) as has been used in previous years, even if, on the anniversary of the *date of the settlement or order, the *All Groups Consumer Price Index number for that quarter has not yet been published. If this happens, the calculation must be made as soon as practicable after the number for that quarter is published.
 (7) In this section:
pay to a person includes pay to the trustee of a trust of which the person is the beneficiary.

Subdivision 54‑C—Tax exemption for personal injury lump sums

Table of sections

Operative provisions
54‑45 Personal injury lump sum exemption for injured person
54‑50 Lump sum compensation would not have been assessable
54‑55 Requirements of the instrument under which the lump sum is paid
54‑60 Requirements for payments of the lump sum

Operative provisions

54‑45  Personal injury lump sum exemption for injured person
  A payment of a *personal injury lump sum that is made to the *injured person is exempt from income tax if:
 (a) there is at least one *personal injury annuity (provided under the same *structured settlement or *structured order) that satisfies the conditions in Subdivision 54‑B; and
 (b) the other conditions in this Subdivision are satisfied.
Note: Section 54‑70 provides a tax exemption if the payment is instead made to the trustee of a trust.

54‑50  Lump sum compensation would not have been assessable
  If the compensation or damages that were used to purchase the *personal injury lump sum had instead been paid to the *injured person on the *date of the settlement or order, the compensation or damages would not have been assessable income.
Note: Paragraph 118‑37(1)(b) disregards a capital gain or capital loss that arises from compensation or damages the injured person receives for any wrong he or she suffers personally.

54‑55  Requirements of the instrument under which the lump sum is paid
  The instrument under which the *personal injury lump sum is paid must:
 (a) identify the *structured settlement or *structured order under which the lump sum is provided; and
 (b) only allow for the payment of the lump sum to be made to:
 (i) the *injured person; or
 (ii) a trustee of a trust of which the injured person is the beneficiary;