Income Tax Act

Marginal note:Tax payable where inadequate consideration

• 206 (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, a trust governed by the plan

  • (a) disposes of property for consideration less than the fair market value of the property at the time of the disposition, or for no consideration; or

  • (b) acquires property for consideration greater than the fair market value of the property at the time of the acquisition.

• Marginal note:Amount of tax payable

  (2) The amount of tax payable in respect of each disposition or acquisition described in subsection (1) is

  • (a) the amount by which the fair market value differs from the consideration; or

  • (b) if there is no consideration, the amount of the fair market value.

• Marginal note:Liability for tax

  (3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax.

• Marginal note:Payment of amount collected to RDSP

  (4) Where a tax has been imposed under subsection (1) in connection with a registered disability savings plan of a beneficiary, the Minister may pay all or part of any amount collected in respect of the tax to a trust governed by a registered disability savings plan of the beneficiary (referred to in this subsection as the “current plan”) if

  • (a) it is just and equitable to do so having regard to all circumstances; and

  • (b) the Minister is satisfied that neither the beneficiary nor any existing holder of the current plan was involved in the transaction that gave rise to the tax.

• Marginal note:Deemed not to be a contribution

  (5) A payment under subsection (4) is deemed not to be a contribution to a registered disability savings plan for the purposes of section 146.4.