Income Tax Act

Marginal note:Amounts to be included in income for year

• 56 (1) Without restricting the generality of section 3, there shall be included in computing the income of a taxpayer for a taxation year,

  • Marginal note:Pension benefits, unemployment insurance benefits, etc.

    (a) any amount received by the taxpayer in the year as, on account or in lieu of payment of, or in satisfaction of,

    • (i) a superannuation or pension benefit including, without limiting the generality of the foregoing,

      • (A) the amount of any pension, supplement or spouse’s or common-law partner’s allowance under the Old Age Security Act and the amount of any similar payment under a law of a province,

      • (B) the amount of any benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,

      • (C) the amount of any payment out of or under a specified pension plan, and

      • (C.1) the amount of any payment out of or under a foreign retirement arrangement established under the laws of a country, except to the extent that the amount would not, if the taxpayer were resident in the country, be subject to income taxation in the country,

      but not including

      • (D) the portion of a benefit received out of or under an employee benefit plan that is required by paragraph 6(1)(g) to be included in computing the taxpayer’s income for the year, or would be required to be so included if that paragraph were read without reference to subparagraph 6(1)(g)(ii),

      • (E) the portion of an amount received out of or under a retirement compensation arrangement that is required by paragraph 56(1)(x) or 56(1)(z) to be included in computing the taxpayer’s income for the year,

      • (F) a benefit received under section 71 of the Canada Pension Plan or under a similar provision of a provincial pension plan as defined in section 3 of that Act, and

      • (G) an amount received out of or under a registered pension plan as a return of all or a portion of a contribution to the plan to the extent that the amount

        • (I) is a payment made to the taxpayer under subsection 147.1(19) or subparagraph 8502(d)(iii) of the Income Tax Regulations, and

        • (II) is not deducted in computing the taxpayer’s income for the year or a preceding taxation year,

    • (ii) a retiring allowance, other than an amount received out of or under an employee benefit plan, a retirement compensation arrangement or a salary deferral arrangement,

    • (iii) a death benefit,

    • (iv) a benefit under the Unemployment Insurance Act, other than a payment relating to a course or program designed to facilitate the re-entry into the labour force of a claimant under that Act, or a benefit under Part I, VII.1, VIII or VIII.1 of the Employment Insurance Act,

    • (v) a benefit under regulations made under an appropriation Act providing for a scheme of transitional assistance benefits to persons employed in the production of products to which the Canada-United States Agreement on Automotive Products, signed on January 16, 1965 applies,

    • (vi) except to the extent otherwise required to be included in computing the taxpayer’s income, a prescribed benefit under a government assistance program, or

    • (vii) a benefit under the Act respecting parental insurance, R.S.Q., c. A-29.011;

  • Marginal note:Benefits under CPP/QPP

    (a.1) where the taxpayer is an estate that arose on or as a consequence of the death of an individual, each benefit received under section 71 of the Canada Pension Plan, or under a similar provision of a provincial pension plan as defined in section 3 of that Act, after July 1997 and in the year in respect of the death of the individual;

  • Marginal note:Pension income reallocation

    (a.2) where the taxpayer is a pension transferee (as defined in subsection 60.03(1)), any amount that is a split-pension amount (as defined in that subsection) in respect of the pension transferee for the taxation year;

  • Marginal note:Parents of victims of crime

    (a.3) amounts received by the taxpayer in the year under a program established under the authority of the Department of Employment and Social Development Act in respect of children who are deceased or missing as a result of an offence, or a probable offence, under the Criminal Code;

  • Marginal note:Support

    (b) the total of all amounts each of which is an amount determined by the formula

    A - (B + C)

    where

    A

    is the total of all amounts each of which is a support amount received after 1996 and before the end of the year by the taxpayer from a particular person where the taxpayer and the particular person were living separate and apart at the time the amount was received,

    B

    is the total of all amounts each of which is a child support amount that became receivable by the taxpayer from the particular person under an agreement or order on or after its commencement day and before the end of the year in respect of a period that began on or after its commencement day, and

    C

    is the total of all amounts each of which is a support amount received after 1996 by the taxpayer from the particular person and included in the taxpayer’s income for a preceding taxation year;

  • (c) [Repealed, 1997, c. 25, s. 8]

  • (c.1) [Repealed, 1994, c. 7, Sch. VIII, s. 17]

  • Marginal note:Reimbursement of support payments

    (c.2) an amount received by the taxpayer in the year under a decree, order or judgment of a competent tribunal as a reimbursement of an amount deducted under paragraph 60(b) or 60(c), or under paragraph 60(c.1) as it applies, in computing the taxpayer’s income for the year or a preceding taxation year to decrees, orders and judgments made before 1993;

  • Marginal note:Annuity payments

    (d) any amount received by the taxpayer in the year as an annuity payment other than an amount

    • (i) otherwise required to be included in computing the taxpayer’s income for the year,

    • (ii) with respect to an interest in an annuity contract to which subsection 12.2(1) applies (or would apply if the contract had an anniversary day in the year at a time when the taxpayer held the interest), or

    • (iii) received out of or under an annuity contract issued or effected as a TFSA;

  • Marginal note:Idem

    (d.2) any amount received out of or under, or as proceeds of disposition of, an annuity the payment for which was

    • (i) deductible in computing the taxpayer’s income because of paragraph 60(l) or because of subsection 146(5.5) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952,

    • (ii) made in circumstances to which subsection 146(21) applied, or

    • (iii) made pursuant to or under a deferred profit sharing plan by a trustee under the plan to purchase the annuity for a beneficiary under the plan;

  • Marginal note:Disposition of income-averaging annuity contract

    (e) any amount received by the taxpayer in the year as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation, redemption, sale or other disposition of an income-averaging annuity contract;

  • Marginal note:Idem

    (f) any amount deemed by subsection 61.1(1) to have been received by the taxpayer in the year as proceeds of the disposition of an income-averaging annuity contract;

  • Marginal note:Supplementary unemployment benefit plan

    (g) amounts received by the taxpayer in the year from a trustee under a supplementary unemployment benefit plan as provided by section 145;

  • Marginal note:Registered retirement savings plan, etc.

    (h) amounts required by section 146 in respect of a registered retirement savings plan or a registered retirement income fund to be included in computing the taxpayer’s income for the year;

  • Marginal note:Home buyers’ plan

    (h.1) amounts required by section 146.01 to be included in computing the taxpayer’s income for the year;

  • Marginal note:Lifelong learning plan

    (h.2) amounts required by section 146.02 to be included in computing the taxpayer’s income for the year;

  • Marginal note:Deferred profit sharing plan

    (i) amounts received by the taxpayer in the year under a deferred profit sharing plan as provided by section 147;

  • Marginal note:Life insurance policy proceeds

    (j) any amount required by subsection 148(1) or 148(1.1) to be included in computing the taxpayer’s income for the year;

  • Marginal note:Certain tools of an employee, re proceeds

    (k) all amounts received in the year by a person or partnership (in this paragraph referred to as the “vendor”) as consideration for the disposition by the vendor of a property the cost of which was included in computing an amount under paragraph 8(1)(r) or (s) in respect of the vendor or in respect of a person with whom the vendor does not deal at arm’s length, to the extent that the total of those amounts received in respect of the disposition in the year and in preceding taxation years exceeds the total of the cost to the vendor of the property immediately before the disposition and all amounts included in respect of the disposition under this paragraph in computing the vendor’s income for a preceding taxation year, unless the property was acquired by the vendor in circumstances to which subsection 85(5.1) or subsection 97(5) applied;

  • Marginal note:Legal expenses

    (l) amounts received by the taxpayer in the year as

    • (i) legal costs awarded to the taxpayer by a court on an appeal in relation to an assessment of any tax, interest or penalties referred to in paragraph 60(o,

    • (ii) reimbursement of costs incurred in relation to a decision of the Canada Employment Insurance Commission under the Employment Insurance Act or to an appeal of such a decision to the Social Security Tribunal,

    • (iii) reimbursement of costs incurred in relation to an assessment or a decision under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,

    if with respect to that assessment or decision, as the case may be, an amount has been deducted or may be deductible under paragraph 60(o) in computing the taxpayer’s income;

  • Marginal note:Idem

    (l.1) amounts received by the taxpayer in the year as an award or a reimbursement in respect of legal expenses (other than those relating to a division or settlement of property arising out of, or on a breakdown of, a marriage or common-law partnership) paid to collect or establish a right to a retiring allowance or a benefit under a pension fund or plan (other than a benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act) in respect of employment;

  • Marginal note:Bad debt recovered

    (m) any amount received by the taxpayer, or by a person who does not deal at arm’s length with the taxpayer, in the year on account of a debt in respect of which a deduction was made under paragraph 60(f) in computing the taxpayer’s income for a preceding taxation year;

  • Marginal note:Scholarships, bursaries, etc.

    (n) the amount, if any, by which

    • (i) the total of all amounts (other than amounts described in paragraph 56(1)(q), amounts received in the course of business, and amounts received in respect of, in the course of or by virtue of an office or employment) received by the taxpayer in the year, each of which is an amount received by the taxpayer as or on account of a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by the taxpayer, other than a prescribed prize,

    exceeds

    • (ii) the taxpayer’s scholarship exemption for the year computed under subsection (3);

    • (iii) [Repealed, 2001, c. 17, s. 39]

  • Marginal note:Apprenticeship grants

    (n.1) the total of all amounts, each of which is an amount received by the taxpayer in the year under the Apprenticeship Incentive Grant program or the Apprenticeship Completion Grant program administered by the Department of Employment and Social Development;

  • Marginal note:Research grants

    (o) the amount, if any, by which any grant received by the taxpayer in the year to enable the taxpayer to carry on research or any similar work exceeds the total of expenses incurred by the taxpayer in the year for the purpose of carrying on the work, other than

    • (i) personal or living expenses of the taxpayer except travel expenses (including the entire amount expended for meals and lodging) incurred by the taxpayer while away from home in the course of carrying on the work,

    • (ii) expenses in respect of which the taxpayer has been reimbursed, or

    • (iii) expenses that are otherwise deductible in computing the taxpayer’s income for the year;

  • Marginal note:Refund of scholarships, bursaries and research grants

    (p) amounts as described in paragraph 60(q) received by the taxpayer in the year from an individual;

  • Marginal note:Education savings plan payments

    (q) amounts in respect of a registered education savings plan required by section 146.1 to be included in computing the taxpayer’s income for the year;

  • Marginal note:Registered disability savings plan payments

    (q.1) amounts in respect of a registered disability savings plan required by section 146.4 to be included in computing the taxpayer’s income for the year;

  • Marginal note:Financial assistance

    (r) amounts received in the year by the taxpayer as

    • (i) earnings supplements provided under a project sponsored by a government or government agency in Canada to encourage individuals to obtain or keep employment,

    • (ii) financial assistance under a program established by the Canada Employment Insurance Commission under Part II of the Employment Insurance Act,

    • (iii) financial assistance under a program that is

      • (A) established by a government or government agency in Canada or by an organization,

      • (B) similar to a program established under Part II of that Act, and

      • (C) the subject of an agreement between the government, government agency or organization and the Canada Employment Insurance Commission because of section 63 of that Act,

    • (iv) financial assistance provided under a program established by a government, or government agency, in Canada that provides income replacement benefits similar to income replacement benefits provided under a program established under the Employment Insurance Act, or

    • (v) amounts received by the taxpayer in the year under the Wage Earner Protection Program Act in respect of wages (within the meaning of that Act);

  • Marginal note:Grants under prescribed programs

    (s) the amount of any grant received in the year under a prescribed program of the Government of Canada relating to home insulation or energy conversion by

    • (i) the taxpayer, other than a married taxpayer or a taxpayer who is in a common-law partnership who resided with the taxpayer’s spouse or common-law partner at the time the grant was received and whose income for the year is less than the taxpayer’s spouse’s or common-law partner’s income for the year, or

    • (ii) the spouse or common-law partner of the taxpayer with whom the taxpayer resided at the time the grant was received, if the spouse’s or common-law partner’s income for the year is less than the taxpayer’s income for the year

    to the extent that the amount is not required by paragraph 12(1)(u) to be included in computing the taxpayer’s or the taxpayer’s spouse’s or common-law partner’s income for the year or a subsequent year;

  • Marginal note:Registered retirement income fund

    (t) amounts in respect of a registered retirement income fund required by section 146.3 to be included in computing the taxpayer’s income for the year;

  • Marginal note:Social assistance payments

    (u) a social assistance payment made on the basis of a means, needs or income test and received in the year by

    • (i) the taxpayer, other than a married taxpayer or a taxpayer who is in a common-law partnership who resided with the taxpayer’s spouse or common-law partner at the time the payment was received and whose income for the year is less than the spouse’s or common-law partner’s income for the year, or

    • (ii) the taxpayer’s spouse or common-law partner, if the taxpayer resided with the spouse or common-law partner at the time the payment was received and if the spouse’s or common-law partners income for the year is less than the taxpayer’s income for the year,

    except to the extent that the payment is otherwise required to be included in computing the income for a taxation year of the taxpayer or the taxpayer’s spouse or common-law partner;

  • Marginal note:Workers’ compensation

    (v) compensation received under an employees’ or workers’ compensation law of Canada or a province in respect of an injury, a disability or death;

  • Marginal note:Salary deferral arrangement

    (w) the total of all amounts each of which is an amount received by the taxpayer as a benefit (other than an amount received by or from a trust governed by a salary deferral arrangement) in the year out of or under a salary deferral arrangement in respect of a person other than the taxpayer except to the extent that the amount, or another amount that may reasonably be considered to relate thereto, has been included in computing the income of that other person for the year or for any preceding taxation year;

  • Marginal note:Retirement compensation arrangement

    (x) any amount, including a return of contributions, received in the year by the taxpayer or another person, other than an amount required to be included in that other person’s income for a taxation year under paragraph 12(1)(n.3), out of or under a retirement compensation arrangement that can reasonably be considered to have been received in respect of an office or employment of the taxpayer;

  • Marginal note:Idem

    (y) any amount received or that became receivable in the year by the taxpayer as proceeds from the disposition of an interest in a retirement compensation arrangement;

  • Marginal note:Idem

    (z) the total of all amounts, including a return of contributions, each of which is an amount received in the year by the taxpayer out of or under a retirement compensation arrangement that can reasonably be considered to have been received in respect of an office or employment of a person other than the taxpayer, except to the extent that the amount was required

    • (i) under paragraph 12(1)(n.3) to be included in computing the taxpayer’s income for a taxation year, or

    • (ii) under paragraph 56(1)(x) or subsection 70(2) to be included in computing the income for the year of a person resident in Canada other than the taxpayer;

  • Marginal note:Value of benefits

    (z.1) the value of benefits received or enjoyed by any person in the year in respect of workshops, seminars, training programs and similar development programs because of the taxpayer’s membership in a registered national arts service organization;

  • Marginal note:Employee life and health trust

    (z.2) the total of all amounts, each of which is an amount received in the year by the taxpayer that is required to be included in income under subsection 144.1(11) except to the extent that the amount was required under subsection 70(2) to be included in computing the income for the year by the taxpayer or other person resident in Canada;

  • Marginal note:Pooled registered pension plan

    (z.3) any amount required by section 147.5 to be included in computing the taxpayer’s income for the year; and

  • Marginal note:Tax informant program

    (z.4) any amount received in the year by the taxpayer under a contract, to provide information to the Canada Revenue Agency, entered into by the taxpayer under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance.

• Marginal note:Application of s. 12.2(11)

  (1.1) The definitions in subsection 12.2(11) apply to paragraph 56(1)(d).

• Marginal note:Indirect payments

  (2) A payment or transfer of property made pursuant to the direction of, or with the concurrence of, a taxpayer to another person for the benefit of the taxpayer or as a benefit that the taxpayer desired to have conferred on the other person (other than by an assignment of any portion of a retirement pension under section 65.1 of the Canada Pension Plan or a comparable provision of a provincial pension plan as defined in section 3 of that Act) shall be included in computing the taxpayer’s income to the extent that it would be if the payment or transfer had been made to the taxpayer.

• Marginal note:Exemption for scholarships, fellowships, bursaries and prizes

  (3) For the purpose of subparagraph (1)(n)(ii), a taxpayer’s scholarship exemption for a taxation year is the total of

  • (a) the total of all amounts each of which is the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship or bursary received in connection with the taxpayer’s enrolment

    • (i) in an educational program in respect of which the taxpayer is a qualifying student (as defined in subsection 118.6(1)) in the taxation year, in the immediately preceding taxation year or in the following taxation year, or

    • (ii) in an elementary or secondary school educational program,

  • (b) the total of all amounts each of which is the lesser of

    • (i) the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of a scholarship, fellowship, bursary or prize that is to be used by the taxpayer in the production of a literary, dramatic, musical or artistic work, and

    • (ii) the total of all amounts each of which is an expense incurred by the taxpayer in the taxation year for the purpose of fulfilling the conditions under which the amount described in subparagraph (i) was received, other than

      • (A) personal or living expenses of the taxpayer (except expenses in respect of travel, meals and lodging incurred by the taxpayer in the course of fulfilling those conditions and while absent from the taxpayer’s usual place of residence for the period to which the scholarship, fellowship, bursary or prize, as the case may be, relates),

      • (B) expenses for which the taxpayer is entitled to be reimbursed, and

      • (C) expenses that are otherwise deductible in computing the taxpayer’s income, and

  • (c) the lesser of $500 and the amount by which the total described in subparagraph (1)(n)(i) for the taxation year exceeds the total of the amounts determined under paragraphs (a) and (b).

• Marginal note:Limitations of scholarship exemption

  (3.1) For the purpose of determining the total in paragraph (3)(a) for a taxation year,

  • (a) a scholarship, fellowship or bursary (in this subsection referred to as an “award”) is not considered to be received in connection with the taxpayer’s enrolment in an educational program described in subparagraph (3)(a)(i) except to the extent that it is reasonable to conclude that the award is intended to support the taxpayer’s enrolment in the program, having regard to all the circumstances, including the terms and conditions that apply in respect of the award, the duration of the program and the period for which support is intended to be provided; and

  • (b) if an award is received in connection with an educational program in respect of which the taxpayer is a qualifying student because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) in the taxation year, in the immediately preceding taxation year or in the following taxation year (in this paragraph referred to as the claim year), the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of the award may not exceed the amount that is the total of amounts, each of which is the cost of materials related to the program or a fee paid to a designated educational institution in respect of the program, as defined in subsection 118.6(1), in respect of the claim year.

• Marginal note:Transfer of rights to income

  (4) Where a taxpayer has, at any time before the end of a taxation year, transferred or assigned to a person with whom the taxpayer was not dealing at arm’s length the right to an amount (other than any portion of a retirement pension assigned by the taxpayer under section 65.1 of the Canada Pension Plan or a comparable provision of a provincial pension plan as defined in section 3 of that Act) that would, if the right had not been so transferred or assigned, be included in computing the taxpayer’s income for the taxation year, the part of the amount that relates to the period in the year throughout which the taxpayer is resident in Canada shall be included in computing the taxpayer’s income for the year unless the income is from property and the taxpayer has also transferred or assigned the property.

• Marginal note:Interest free or low interest loans

  (4.1) Where

  • (a) a particular individual (other than a trust) or a trust in which the particular individual is beneficially interested has, directly or indirectly by means of a trust or by any means whatever, received a loan from or become indebted to

    • (i) another individual (in this subsection referred to as the “creditor”) who

      • (A) does not deal at arm’s length with the particular individual, and

      • (B) is not a trust, or

    • (ii) a trust (in this subsection referred to as the “creditor trust”) to which another individual (in this subsection referred to as the “original transferor”) who

      • (A) does not deal at arm’s length with the particular individual,

      • (B) was resident in Canada at any time in the period during which the loan or indebtedness is outstanding, and

      • (C) is not a trust,

      has directly or indirectly by means of a trust or by any means whatever, transferred property, and

  • (b) it can reasonably be considered that one of the main reasons for making the loan or incurring the indebtedness was to reduce or avoid tax by causing income from

    • (i) the loaned property,

    • (ii) property that the loan or indebtedness enabled or assisted the particular individual, or the trust in which the particular individual is beneficially interested, to acquire, or

    • (iii) property substituted for property referred to in subparagraph 56(4.1)(b)(i) or 56(4.1)(b)(ii)

    to be included in the income of the particular individual,

  the following rules apply:

  • (c) any income of the particular individual for a taxation year from the property referred to in paragraph 56(4.1)(b) that relates to the period or periods in the year throughout which the creditor or the creditor trust, as the case may be, was resident in Canada and the particular individual was not dealing at arm’s length with the creditor or the original transferor, as the case may be, shall be deemed,

    • (i) where subparagraph 56(4.1)(a)(i) applies, to be income of the creditor for that year and not of the particular individual except to the extent that

      • (A) section 74.1 applies or would, but for subsection 74.5(3), apply, or

      • (B) subsection 75(2) applies

      to that income, and

    • (ii) where subparagraph 56(4.1)(a)(ii) applies, to be income of the creditor trust for that year and not of the particular individual except to the extent that

      • (A) subparagraph 56(4.1)(c)(i) applies,

      • (B) section 74.1 applies or would, but for subsection 74.5(3), apply, or

      • (C) subsection 75(2) applies (otherwise than because of paragraph 56(4.1)(d))

      to that income; and

  • (d) where subsection 75(2) applies to any of the property referred to in paragraph 56(4.1)(b) and subparagraph 56(4.1)(c)(ii) applies to income from the property, subsection 75(2) applies after subparagraph 56(4.1)(c)(ii) is applied.

• Marginal note:Exception

  (4.2) Notwithstanding any other provision of this Act, subsection 56(4.1) does not apply to any income derived in a particular taxation year where

  • (a) interest was charged on the loan or indebtedness at a rate equal to or greater than the lesser of

    • (i) the prescribed rate of interest in effect at the time the loan was made or the indebtedness arose, and

    • (ii) the rate that would, having regard to all the circumstances, have been agreed on, at the time the loan was made or the indebtedness arose, between parties dealing with each other at arm’s length;

  • (b) the amount of interest that was payable in respect of the particular year in respect of the loan or indebtedness was paid not later than 30 days after the end of the particular year; and

  • (c) the amount of interest that was payable in respect of each taxation year preceding the particular year in respect of the loan or indebtedness was paid not later than 30 days after the end of each of those preceding taxation years.

• Marginal note:Repayment of existing indebtedness

  (4.3) For the purposes of subsection 56(4.1), where at any time a particular property is used to repay, in whole or in part, a loan or indebtedness that enabled or assisted an individual to acquire another property, there shall be included in computing the income from the particular property that proportion of the income or loss, as the case may be, derived after that time from the other property or from property substituted therefor that the amount so repaid is of the cost to the individual of the other property, but for greater certainty nothing in this subsection shall affect the application of subsection 56(4.1) to any income or loss derived from the other property or from property substituted therefor.

• Marginal note:Exception for split income

  (5) Subsections (2), (4) and (4.1) do not apply to any amount that is included in computing a specified individual’s split income for a taxation year.

• Marginal note:Child care benefit

  (6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts each of which is a benefit paid under section 4 of the Universal Child Care Benefit Act that is received in the taxation year by

  • (a) the taxpayer, if

    • (i) the taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) at the end of the year and the taxpayer does not make a designation under subsection (6.1) for the taxation year, or

    • (ii) the income, for the taxation year, of the person who is the taxpayer’s cohabiting spouse or common-law partner at the end of the taxation year is equal to or greater than the income of the taxpayer for the taxation year;

  • (b) the taxpayer’s cohabiting spouse or common-law partner at the end of the taxation year, if the income of the cohabiting spouse or common-law partner for the taxation year is greater than the taxpayer’s income for the taxation year; or

  • (c) an individual who makes a designation under subsection (6.1) in respect of the taxpayer for the taxation year.

• Marginal note:Designation

  (6.1) If, at the end of the taxation year, a taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6), the taxpayer may designate, in the taxpayer’s return of income for the taxation year, the total of all amounts, each of which is a benefit received in the taxation year by the taxpayer under section 4 of the Universal Child Care Benefit Act, to be income of

  • (a) if the taxpayer deducts an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of an individual, the individual; or

  • (b) in any other case, a child who is a qualified dependant (as defined in section 2 of the Universal Child Care Benefit Act) of the taxpayer.

• (7) [Repealed, 1994, c. 7, Sch. VII, s. 1]

• Marginal note:CPP/QPP and UCCB amounts for previous years

  (8) Notwithstanding subsections (1) and (6), if

  • (a) one or more amounts

    • (i) are received by an individual (other than a trust) in a taxation year as, on account of, in lieu of payment of or in satisfaction of, any benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, or

    • (ii) would be, but for this subsection, included in computing the income of an individual for a taxation year under subsection (6), and

  • (b) a portion, not less than $300, of the total of those amounts relates to one or more preceding taxation years,

  that portion shall, at the option of the individual, not be included in the individual’s income.

• Meaning of income for the year

  (9) For the purposes of paragraphs 56(1)(s) and 56(1)(u), income for the year of a person means the amount that would, but for those paragraphs, paragraphs 60(v.1) and 60(w) and section 63, be the income of that person for the year.

• Meaning of income

  (9.1) For the purposes of subsection (6), income of a person for a taxation year means the amount that would, in the absence of that subsection, paragraphs (1)(s) and (u) and 60(v.1), (w) and (y) and section 63, be the income of the person for the taxation year.

• Marginal note:Severability of retirement compensation arrangement

  (10) Where a retirement compensation arrangement is part of a plan or arrangement (in this subsection referred to as the “plan”) under which amounts not related to the retirement compensation arrangement are payable or provided, for the purposes of this Act, other than this subsection,

  • (a) the retirement compensation arrangement shall be deemed to be a separate arrangement independent of other parts of the plan of which it is a part; and

  • (b) subject to subsection 6(14), amounts paid out of or under the plan shall be deemed to have first been paid out of the retirement compensation arrangement unless a provision in the plan otherwise provides.

• Marginal note:Disposition of property by RCA trust

  (11) For the purposes of paragraphs 56(1)(x) and 56(1)(z), where, at any time in a year, a trust governed by a retirement compensation arrangement

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

  • (b) acquires property from a person for consideration greater than the fair market value of the property at the time of the acquisition, or

  • (c) permits a person to use or enjoy property of the trust for no consideration or for consideration less than the fair market value of such use or enjoyment,

  the amount, if any, by which the fair market value differs from the consideration or, if there is no consideration, the amount of the fair market value shall be deemed to be an amount received at that time by the person out of or under the arrangement that can reasonably be considered to have been received in respect of an office or employment of a taxpayer.

• Marginal note:Foreign retirement arrangement

  (12) If an amount in respect of a foreign retirement arrangement is, as a result of a transaction, an event or a circumstance, considered to be distributed to an individual under the income tax laws of the country in which the arrangement is established, the amount is, for the purpose of paragraph (1)(a), deemed to be received by the individual as a payment out of the arrangement in the taxation year that includes the time of the transaction, event or circumstance.