© Éditeur officiel du Québec
Updated to 1 April 2016
This document has official status.



891. (Repealed).

1975, c. 21, s. 19; 2000, c. 5, s. 194.

892. (Repealed).

1975, c. 21, s. 19; 2000, c. 5, s. 194.

893. The contract to which paragraph a of the definition of education savings plan in section 890.15 refers is a contract entered into before 1 January 1998 between an individual and a promoter, under which, as consideration for the payment of an amount by the individual, the promoter agrees to pay or to cause to be paid educational assistance payments to or for a beneficiary.

1975, c. 21, s. 19; 2000, c. 5, s. 195.

894. (Repealed).

1975, c. 21, s. 19; 1980, c. 13, s. 73; 1993, c. 16, s. 305; 1997, c. 3, s. 41; 2000, c. 5, s. 196.

894.1. If a valid election is made under subsection 1.1 of section 146.1 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)), an accumulated income payment under the registered education savings plan may be made to the registered disability savings plan, despite paragraph c.1 of section 895 and any terms of the plan required by that paragraph.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 1.1 of section 146.1 of the Income Tax Act.

2015, c. 21, s. 333.

895.  (a) at the time of the application for registration of the plan by the promoter, not fewer than 150 plans have been entered into with the promoter, each of which complied, at the time it was entered into, with the conditions set out in section 894 and the other conditions set out in this section, as those sections read at that time;

 (a.1) the plan provides that the property of any trust governed by the plan, after the payment of trustee and administration charges, is irrevocably held for any of the purposes described in the definition of “trust” in section 890.15 by a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering its services as a trustee;

 (b) the promoter and each trust governed by the plan are resident in Canada;

 (c) the plan does not allow for any payment before 1 January 1998 to a subscriber, other than the payment of a refund of contributions, unless the subscriber is also the beneficiary under the plan;

 (c.1) subject to section 895.0.1, if the plan allows accumulated income payments, the plan provides that an accumulated income payment is permitted to be made only if

(i)  the payment is made to, or on behalf of, a subscriber under the plan who is resident in Canada when the payment is made,

(ii)  the payment is not made jointly to, or on behalf of, more than one subscriber, and

(iii)  any of the following situations apply:

(1)  the payment is made after the ninth year that follows the year in which the plan was entered into and each individual, other than a deceased individual, who is or was a beneficiary under the plan has attained 21 years of age before the payment is made and is not, when the payment is made, eligible under the plan to receive an educational assistance payment,

(2)  the payment is made in the year in which the plan must be terminated in accordance with paragraph h, or

(3)  each individual who was a beneficiary under the plan is deceased when the payment is made;

 (d) the plan is substantially similar to the plan described in or annexed to the prospectus filed by the promoter with the Autorité des marchés financiers, a securities commission or a similar body in Canada;

 (e) in the event that a trust governed by the plan is terminated, the property held by the trust is to be used for any of the purposes described in the definition of “trust” in section 890.15;

 (f) the plan provides for the payment of educational assistance payments before 1 January 1997 to an individual only if the individual is, at the time the payment is made, in full-time attendance at a prescribed post-secondary educational institution, enrolled in a prescribed educational program at the institution;

 (f.1) the plan provides for the payment of educational assistance payments at any time after 31 December 1996 to or on behalf of an individual only if

(i)  (subparagraph repealed),

(ii)  the individual is at that time

(1)  enrolled as a student in a prescribed educational program at a prescribed post-secondary educational institution, or

(2)  16 years of age or over and enrolled as a student in a prescribed training program at a prescribed postsecondary educational institution, and

(iii)  any of the following situations apply:

(1)  the individual satisfies, at that time, the condition set out in subparagraph 1 of subparagraph ii and has satisfied that condition throughout at least 13 consecutive weeks in the 12-month period that ends at that time, or the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or on behalf of the individual in the 12-month period that ends at that time does not exceed $5,000 or such greater amount as the Minister responsible for the administration of the Canada Education Savings Act (S.C. 2004, c. 26) approves in writing in respect of the individual, or

(2)  the individual satisfies, at that time, the condition set out in subparagraph 2 of subparagraph ii and the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or on behalf of the individual in the 13-week period that ends at that time does not exceed $2,500 or such greater amount as the Minister responsible for the administration of the Canada Education Savings Act approves in writing in respect of the individual;

 (f.2) the plan provides that no contribution to the plan may be made otherwise than by or on behalf of a subscriber under the plan in respect of a beneficiary under the plan or by way of transfer from another plan that is a registered education savings plan;

 (f.3) the plan provides

(i)  that an individual is permitted to be designated as a beneficiary under the plan only if

(1)  the individual's Social Insurance Number is provided to the promoter before the designation is made, and

(2)  the individual is resident in Canada when the designation is made, or the designation is made in conjunction with a transfer of property into the plan from another registered education savings plan under which the individual was a beneficiary immediately before the transfer, and

(ii)  that a contribution to the plan in respect of an individual who is a beneficiary under the plan is permitted to be made only if

(1)  the individual's Social Insurance Number is provided to the promoter before the contribution is made and the individual is resident in Canada when the contribution is made, or

(2)  the contribution is made by means of a transfer from another registered education savings plan under which the individual was a beneficiary immediately before the transfer;

 (g) the plan provides that no contribution, other than a contribution made by way of transfer from another registered education savings plan, may be made into the plan

(i)  in the case of a specified plan, after the 35th year following the year in which the plan is entered into, and

(ii)  in any other case, after the 31st year following the year in which the plan is entered into;

 (h) the plan provides that it must be terminated on or before the last day of

(i)  in the case of a specified plan, the 40th year following the year in which the plan is entered into, and

(ii)  in any other case, the 35th year following the year in which the plan is entered into;

 (h.1) where the plan allows accumulated income payments, the plan provides that it must be terminated before 1 March of the year following the year in which the first such payment is made under the plan;

 (h.2) the plan does not allow for the receipt of property by way of direct transfer from another plan that is a registered education savings plan after the other plan has made any accumulated income payment;

 (i) where the plan allows more than one beneficiary under the plan at any one time, the plan provides

(i)  that each of the beneficiaries under the plan is required to be connected to each living subscriber under the plan, or to have been connected to a deceased original subscriber under the plan, by blood relationship or adoption, and

(ii)  that a contribution to the plan in respect of a beneficiary is permitted to be made only if

(1)  the beneficiary had not attained 31 years of age before the time of the contribution,

(2)  the contribution is made by way of transfer from another plan that is a registered education savings plan that allows more than one beneficiary at any one time, and

(3)  (subparagraph repealed),

(iii)  an individual is permitted to become a beneficiary under the plan at any particular time only if

(1)  the individual had not attained 21 years of age before the particular time, or

(2)  the individual was, immediately before the particular time, a beneficiary under another registered education savings plan that allows more than one beneficiary at any one time;

 (j) (paragraph repealed);

 (k) the plan provides that the promoter shall, within 90 days after an individual becomes a beneficiary under the plan, notify in writing the individual or, if the individual is under 19 years of age at that time and either ordinarily resides with a parent of the individual or is maintained by a public primary caregiver of the individual, that parent or public primary caregiver, of the existence of the plan and the name and address of the subscriber in respect of the plan;

 (l) the Minister has no reason to believe that the promoter will not take all reasonable measures to ensure that the plan will continue to comply with the conditions for registration set out in paragraphs a.1, b to c.1 and e to k for the purposes of this Part; and

 (m) the Minister has no reasonable basis to believe that the plan will become revocable.

1975, c. 21, s. 19; 1993, c. 16, s. 306; 1998, c. 16, s. 211; 2000, c. 5, s. 197; 2001, c. 53, s. 183; 2002, c. 45, s. 518; 2003, c. 9, s. 463; 2004, c. 37, s. 90; 2005, c. 38, s. 209; 2006, c. 36, s. 89; 2009, c. 5, s. 380; 2009, c. 15, s. 165; 2011, c. 1, s. 47; 2015, c. 21, s. 334.

895.0.1. The Minister may, on written application of the promoter of a registered education savings plan, waive the application of the conditions set out in subparagraph 1 of subparagraph iii of paragraph c.1 of section 895 in respect of the plan if a beneficiary under the plan suffers from a severe and prolonged impairment in mental functions that prevents, or can reasonably be expected to prevent, the beneficiary from enrolling in a prescribed educational program at a prescribed post-secondary educational institution.

2001, c. 53, s. 184; 2005, c. 38, s. 210; 2006, c. 36, s. 90.

895.0.1.1. Despite paragraph f.1 of section 895, an education savings plan may provide for the payment of an educational assistance payment to or for an individual at any time in the six-month period after the particular time at which the individual ceases to be enrolled as a student in a prescribed educational program or a prescribed training program, if the payment would have complied with that paragraph f.1 had the payment been made immediately before the particular time.

2009, c. 15, s. 166; 2011, c. 1, s. 48.

895.0.1.2. An educational assistance payment that is made at any time in accordance with section 895.0.1.1 but not in accordance with paragraph f.1 of section 895 is deemed, for the purposes of that paragraph at and after that time, to have been made immediately before the particular time referred to in section 895.0.1.1.

2009, c. 15, s. 166.

895.0.2. For the purposes of subparagraph 1 of subparagraph iii of paragraph f.1 of section 895, a reference to an amount that the Minister responsible for the administration of the Canada Education Savings Act (S.C. 2004, c. 26) approves in writing in respect of an individual is a reference to an amount that the Minister of Human Resources Development or the Minister of State to be styled Minister of Human Resources and Skills Development has approved in writing in respect of the individual before the day on which a Minister is designated as responsible for the administration of that Act.

2005, c. 38, s. 211; 2009, c. 5, s. 381.

895.0.3. Despite paragraph f.3 of section 895, an education savings plan may provide that an individual's Social Insurance Number need not be provided in respect of

 (a) a contribution made to the plan, if the contract constituting the plan was entered into before 1 January 1999; and

 (b) a designation, as a beneficiary under the plan, of an individual who is not resident in Canada, if the individual was not assigned a Social Insurance Number before the designation is made.

2009, c. 15, s. 167.

895.1. Where property irrevocably held by a trust governed by a registered education savings plan, in this section referred to as the transferor plan, is transferred to a trust governed by another registered education savings plan, in this section referred to as the transferee plan, the following rules apply:

 (a) for the purposes of this section, the definition of specified plan in section 890.15 and paragraphs c.1, g and h of section 895, the transferee plan is deemed to have been entered into on the day on which the transferee plan was entered into or, if it is earlier, on the day on which the transferor plan was entered into; and

 (b) notwithstanding sections 904 and 904.1, no amount shall be included in computing the income of any person because of the transfer.

1993, c. 16, s. 307; 2000, c. 5, s. 198; 2005, c. 38, s. 212.

896. Where an education savings plan cannot be registered solely because the condition set out in paragraph a of section 895 has not been complied with, if the plan is subsequently registered, it is deemed to have been registered on 1 January of the year in which all other conditions referred to in that section were complied with or on 1 January of the year preceding the year in which the plan is subsequently registered, whichever date is the later.

1975, c. 21, s. 19; 2000, c. 5, s. 198.

897. Notwithstanding paragraph d of section 895, the Minister may register an education savings plan even though the promoter has not filed the prospectus contemplated therein in respect of the plan, if the promoter is not otherwise required by the laws of Canada or a province to file such a prospectus with the Autorité des marchés financiers, a securities commission or a body performing a similar function in Canada and the plan complies with the other conditions set out in that section 895.

1975, c. 21, s. 19; 1993, c. 16, s. 308; 2000, c. 5, s. 199; 2002, c. 45, s. 519; 2004, c. 37, s. 90.

898. Subject to section 896, an education savings plan shall be deemed to have been registered on 1 January:

 (a) of the year 1972 or of the year in which it was created, whichever date is the later, if it was registered before 1976; or

 (b) of the year in which it was registered, if it was registered after 1975.

1975, c. 21, s. 19.

CHAPTER II 
REVOCATION OF REGISTRATION
1975, c. 21, s. 19.

898.1. If, on a particular day, a registered education savings plan is revocable or ceases to comply with any provision of the plan or with the registering conditions set out in section 895 or a person fails to comply with a condition or obligation imposed under Division II.21 of Chapter III.1 of Title III of Book IX, the Canada Education Savings Act (S.C. 2004, c. 26) or a program administered in accordance with an agreement entered into under section 12 of that Act, that applies in respect of a registered education savings plan, the Minister may send written notice to the promoter of the plan that the Minister proposes to revoke the registration of the plan as of the date specified in the notice, which date must not be earlier than the particular day.

2000, c. 5, s. 200; 2001, c. 53, s. 185; 2005, c. 38, s. 213; 2009, c. 5, s. 382.

898.1.1. For the purposes of paragraph m of section 895 and section 898.1, a registered education savings plan is revocable at any time after 27 October 1998 at which

 (a) a trust governed by the plan acquires property that is not a qualified investment for the trust;

 (b) property held by a trust governed by the plan ceases to be a qualified investment for the trust and the property is not disposed of by the trust within 60 days after that time;

 (c) a trust governed by the plan begins carrying on a business; or

 (d) a trustee that holds property in connection with the plan borrows money for the purposes of the plan, except where

(i)  the money is borrowed for a term not exceeding 90 days,

(ii)  the money is not borrowed as part of a series of loans or other transactions and repayments, and

(iii)  none of the property of the trust is used as security for the borrowed money.

2001, c. 53, s. 186.

898.2. Where, in accordance with section 898.1, the Minister sends a notice, in this section referred to as a notice of intent, to the promoter of a registered education savings plan that the Minister proposes to revoke the registration of the plan, the Minister may, after 30 days after the receipt by the promoter of the notice of intent, send written notice to the promoter that the registration of the plan is revoked as of the day specified in the notice of revocation, which day shall not be earlier than the day specified in the notice of intent.

2000, c. 5, s. 200.

899. Where, in accordance with section 898.2, the Minister sends a notice of revocation of the registration of a registered education savings plan to the promoter of the plan, the registration of the plan is revoked as of the day specified in the notice of revocation, unless the Court of Québec or a judge thereof, on application made at any time before the determination of an appeal under subparagraph e of the first paragraph of section 93.1.15 of the Tax Administration Act (chapter A-6.002), decides otherwise.

Subject to the first paragraph, the registration of a registered education savings plan that is deemed to have been registered by the Minister for the purposes of this Part, in accordance with the definition of registered education savings plan in section 890.15, is deemed, for the purposes of this Part, to be revoked as of the day on which, for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), the registration of the plan is revoked under subsection 13 of section 146.1 of that Act.

1975, c. 21, s. 19; 1975, c. 83, s. 84; 1999, c. 83, s. 273; 2000, c. 5, s. 201; 2010, c. 31, s. 175.

900. (Repealed).

1975, c. 21, s. 19; 2000, c. 5, s. 202.

CHAPTER III 
TAX
1975, c. 21, s. 19.

901. No tax is payable under this Part by a trust on its taxable income for a taxation year, or by a subscriber on the income of the trust for a taxation year after 1971 if, throughout the period of the year in which it is in existence, the trust is governed by a registered education savings plan.

1975, c. 21, s. 19.

902. A trust governed by an education savings plan which, in a taxation year, is not registered, shall be deemed to be for the year an inter vivos trust contemplated in section 768 established after 17 June 1971.

1975, c. 21, s. 19.

CHAPTER IV 
INCOME INCLUSIONS
1975, c. 21, s. 19; 2000, c. 5, s. 203.

903. (Repealed).

1975, c. 21, s. 19; 2000, c. 5, s. 204.

904. An individual shall include in computing the individual's income for a taxation year any education assistance payment paid out of a registered education savings plan to or for the individual in the year.

1975, c. 21, s. 19; 1980, c. 13, s. 74; 2000, c. 5, s. 205.

904.1. A taxpayer shall include in computing the taxpayer's income for a taxation year the aggregate of

 (a) any accumulated income payment (other than an accumulated income payment made under section 894.1) received in the year by the taxpayer under a registered education savings plan; and

 (b) any amount received in the year by the taxpayer in full or partial satisfaction of a subscriber's interest under a registered education savings plan, other than any excluded amount in relation to the plan.

For the purposes of subparagraph b of the first paragraph, an excluded amount in relation to a registered education savings plan is

 (a) any amount received under the plan;

 (b) any amount received in satisfaction of a right to a refund of contributions under the plan; or

 (c) any amount received by a taxpayer under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a partition of property between the taxpayer and the taxpayer's spouse or former spouse in settlement of rights arising out of, or on the breakdown of, their marriage.

2000, c. 5, s. 206; 2015, c. 21, s. 335.

905. (Repealed).

1975, c. 21, s. 19; 1997, c. 14, s. 151; 2000, c. 5, s. 207.

CHAPTER V 
ADMINISTRATION
2000, c. 5, s. 208.

905.0.1. Where a registered education savings plan is amended, the promoter of the plan shall file the text of the amendment with the Minister not later than 60 days after the day on which the plan is amended.

2000, c. 5, s. 208.

905.0.2. The Government may make regulations requiring promoters of education savings plans to file information returns in relation to the plans.

2000, c. 5, s. 208.

TITLE III.1 
REGISTERED DISABILITY SAVINGS PLAN
2009, c. 15, s. 168.

CHAPTER I 
INTERPRETATION AND REGISTRATION
2009, c. 15, s. 168.

905.0.3. In this Title,

assistance holdback amount, in relation to a disability savings plan, has the meaning assigned by the Canada Disability Savings Regulations (SOR/2008-186) made under the Canada Disability Savings Act (S.C. 2007, c. 35);

business number means the Québec business number assigned under the Act respecting the legal publicity of enterprises (chapter P-44.1) or the business number within the meaning of subsection 1 of section 248 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

designated provincial program means a program that is established under the laws of a province and that supports savings in registered disability savings plans;

disability assistance payment, in relation to a disability savings plan of a beneficiary, means any payment made from the plan to the beneficiary under the plan or to the beneficiary's succession;

disability savings plan of a beneficiary means an arrangement

 (a) between an issuer and one or more of the following:

(i)  the beneficiary,

(ii)  a person who, at the time the arrangement is entered into, is a qualifying person described in paragraph a or b of the definition of “qualifying person” in relation to the beneficiary,

(ii.1)  if the arrangement is entered into before 1 January 2017, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,

(ii.2)  a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary, and

(iii)  the father or mother of the beneficiary who, at the time the arrangement is entered into, is not a qualifying person in relation to the beneficiary but is a holder of another arrangement that is a registered disability savings plan of the beneficiary;

 (b) under which one or more contributions are to be made in trust to the issuer to be invested, used or otherwise applied by the issuer for the purpose of making payments from the arrangement to the beneficiary; and

 (c) that is entered into in a taxation year in respect of which the beneficiary is an individual eligible for the tax credit for severe and prolonged impairment in mental or physical functions;

excluded year means a calendar year prior to the calendar year in which the certification mentioned in the definition of “specified year” is provided to the issuer of the plan;

holder of a disability savings plan at any time means

 (a) a person who has, at that time, rights as a person with which the issuer entered into the plan;

 (b) a person who has, at that time, rights as a successor or assignee of a person described in paragraph a or in this paragraph; or

 (c) the beneficiary under the plan if, at that time, the beneficiary is not a person described in paragraph a or b and has rights under the plan to make decisions, either alone or with other holders of the plan, concerning the plan, unless the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph iii of subparagraph n of the first paragraph of section 905.0.6;

individual eligible for the tax credit for severe and prolonged impairment in mental or physical functions, in respect of a taxation year, means an individual in respect of whom an amount is deductible under section 118.3 of the Income Tax Act in computing the individual's tax payable under Part I of that Act for the year or that would be deductible if that section were read without reference to paragraph c of its subsection 1;

issuer, in relation to a disability savings plan, means a corporation licensed or otherwise authorized under the laws of Canada or of a province to offer in Canada its services as trustee, and with which the Minister responsible for the administration of the Canada Disability Savings Act has entered into an agreement that applies to the plan for the purposes of that Act;

lifetime disability assistance payments under a disability savings plan of a beneficiary means disability assistance payments that are identified under the terms of the plan as lifetime disability assistance payments and that, after they begin to be paid, are payable at least annually until the earlier of the day on which the beneficiary dies and the day on which the plan ceases to exist;

plan trust, in relation to a disability savings plan, means the trust governed by the plan;

qualifying family member, in relation to a beneficiary of a disability savings plan, at any time, means an individual who, at that time, is

 (a) the father or mother of the beneficiary; or

 (b) the spouse of the beneficiary who is not living separate and apart from the beneficiary by reason of a breakdown of their marriage;

qualifying person, in relation to a beneficiary of a disability savings plan, at any time, means

 (a) if the beneficiary has not, at or before that time, reached 18 years of age, a person who is, at that time,

(i)  the father or mother of the beneficiary,

(ii)  a tutor, curator or other individual who is legally authorized to act on behalf of the beneficiary, or

(iii)  a public department, agency or institution that is legally authorized to act on behalf of the beneficiary;

 (b) if the beneficiary has, at or before that time, reached 18 years of age and is not, at that time, contractually competent to enter into a disability savings plan, a person who is, at that time, described in subparagraph ii or iii of paragraph a; and

 (c) other than for the purposes of subparagraph iv of subparagraph b of the first paragraph of section 905.0.6, an individual who is a qualifying family member in relation to the beneficiary if

(i)  at or before that time, the beneficiary has reached 18 years of age and is not a beneficiary under a disability savings plan,

(ii)  at that time, none of the persons described in subparagraphs ii and iii of paragraph a is legally authorized to act on behalf of the beneficiary, and

(iii)  in the issuer's opinion after reasonable inquiry, the beneficiary's contractual competence to enter into a disability savings plan at that time is in doubt;

registered disability savings plan means a disability savings plan that satisfies the conditions set out in section 905.0.5, but does not include a disability savings plan in respect of which any of sections 905.0.7, 905.0.8 and 905.0.20 applies;

specified maximum amount, for a calendar year in respect of a disability savings plan, means the amount that is the greater of

 (a) the amount determined by the formula in subparagraph l of the first paragraph of section 905.0.6 in respect of the plan for the calendar year; and

 (b) the amount determined by the formula


A + B;


specified year for a disability savings plan of a beneficiary means a calendar year, other than an excluded year, that is either the particular calendar year in which a physician licensed to practise under the laws of a province (or of the jurisdiction where the beneficiary resides) certifies in writing that the beneficiary's state of health is such that, in the professional opinion of the physician, the beneficiary is not likely to survive more than five years, or

 (a) if the plan is a specified disability savings plan, a year subsequent to the particular calendar year; or

 (b) in any other case, any of the five calendar years following the particular calendar year.

In the formula in paragraph b of the definition of “specified maximum amount” in the first paragraph,

 (a) A is 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts that, at the beginning of the calendar year, are not described in paragraph b of the definition of “qualified investment” in subsection 1 of section 205 of the Income Tax Act); and

 (b) B is the aggregate of all amounts each of which is

(i)  a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph b of the definition of “qualified investment” in subsection 1 of section 205 of the Income Tax Act) that is paid to the plan trust in the calendar year, or

(ii)  if the periodic payment under an annuity contract described in subparagraph i is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, an amount that is a reasonable estimate of that payment on the assumption that the annuity contract had been held by the plan trust throughout the calendar year and no rights under the contract were disposed of in the calendar year.

2009, c. 15, s. 168; 2010, c. 7, s. 212; 2011, c. 6, s. 178; 2012, c. 8, s. 143; 2013, c. 10, s. 71; 2015, c. 21, s. 336.

905.0.3.1. Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of the application of paragraph c of the definition of “qualifying person” in the first paragraph of section 905.0.3 ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if

 (a) the beneficiary is determined to be contractually competent by a competent tribunal or other authority under the laws of a province or, in the issuer's opinion after reasonable inquiry, the beneficiary's contractual competence to enter into a disability savings plan is no longer in doubt; and

 (b) the beneficiary notifies the issuer that the beneficiary chooses to become the holder of the plan.

2013, c. 10, s. 72; 2015, c. 21, s. 337.

905.0.3.2. If a particular person described in subparagraph ii or iii of paragraph a of the definition of “qualifying person” in the first paragraph of section 905.0.3 is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of the application of paragraph c of that definition, the following rules apply:

 (a) the particular person shall notify the issuer without delay of the person's appointment;

 (b) the holder of the plan ceases to be a holder of the plan; and

 (c) the particular person becomes the holder of the plan.

2013, c. 10, s. 72; 2015, c. 21, s. 338.

905.0.3.3. If a dispute arises as a result of a disability savings plan issuer's acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of the application of paragraph c of the definition of “qualifying person” in the first paragraph of section 905.0.3 as a holder of the plan, from the time the dispute arises until the time that the dispute is resolved or a person becomes the holder of the plan under section 905.0.3.1 or 905.0.3.2, the holder of the plan shall make every effort to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan.

2013, c. 10, s. 72; 2015, c. 21, s. 339.

905.0.3.4. If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual's contractual competence to enter into a disability savings plan is in doubt, no judicial recourse may be exercised against the issuer for entering into a disability savings plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of the application of paragraph c of the definition of “qualifying person” in the first paragraph of section 905.0.3.

2013, c. 10, s. 72; 2015, c. 21, s. 340.

905.0.4. For the purposes of this Title, a contribution to a disability savings plan does not include, other than for the purposes of paragraph b of the definition of “disability savings plan” in the first paragraph of section 905.0.3,

 (a) an amount paid into the plan under or because of the Canada Disability Savings Act (S.C. 2007, c. 35) or a designated provincial program;

 (b) an amount paid into the plan under or because of any other program that has a similar purpose to a designated provincial program and that is funded, directly or indirectly, by a province, other than an amount paid into the plan by an entity described in subparagraph iii of paragraph a of the definition of “qualifying person” in the first paragraph of section 905.0.3 in its capacity as holder of the plan;

 (c) an amount transferred to the plan in accordance with section 905.0.16; or

 (d) other than for the purposes of subparagraphs f to h and n of the first paragraph of section 905.0.6,

(i)  an amount that is a specified RDSP payment as defined in subsection 1 of section 60.02 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), and

(ii)  an amount that is an accumulated income payment made to the plan under section 894.1.

2009, c. 15, s. 168; 2011, c. 6, s. 179; 2012, c. 8, s. 144; 2015, c. 21, s. 341.

905.0.4.1. If, in respect of a beneficiary under a registered disability savings plan, a physician licensed to practise under the laws of a province (or of the jurisdiction where the beneficiary resides) certifies in writing that the beneficiary's state of health is such that, in the professional opinion of the physician, the beneficiary is not likely to survive more than five years, the holder of the plan elects in prescribed form and provides the election and the medical certification in respect of the beneficiary under the plan to the issuer of the plan, and the issuer notifies the Minister of the election in a manner and format acceptable to the Minister, the plan becomes a specified disability savings plan at the time the notification is received by the Minister.

Unless the Minister decides otherwise, the conditions of the first paragraph are deemed to be met in relation to a registered disability savings plan when the conditions of subsection 1.1 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) are met in relation to that plan and the Minister is deemed to have received the notification referred to in the first paragraph at the time the Minister responsible for the administration of the Canada Disability Savings Act (S.C. 2007, c. 35) receives the notification referred to in that subsection 1.1 in relation to that plan.

2012, c. 8, s. 145.

905.0.4.2. A plan ceases to be a specified disability savings plan at the earliest of the following times:

 (a) the time that the Minister receives a notification, in a manner and format acceptable to the Minister, from the issuer that the holder of the plan elects that the plan is to cease to be a specified disability savings plan;

 (b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made under the plan in the year and while it was a specified disability savings plan exceeds $10,000 or such greater amount as is required to satisfy the condition of subparagraph i of subparagraph d;

 (c) the time that is immediately before the time that

(i)  a contribution is made to the plan,

(ii)  an amount described in paragraph a or b of section 905.0.4 or subparagraph ii of paragraph d of that section is paid into the plan,

(iii)  the plan is terminated,

(iv)  the plan ceases to be a registered disability savings plan as a result of the application of subparagraph a of the first paragraph of section 905.0.20, or

(v)  is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairment in mental or physical functions the effects of which are described in paragraph a.1 of subsection 1 of section 118.3 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)); and

 (d) the time immediately following the end of a calendar year if

(i)  the total amount of disability assistance payments made from the plan in the year is less than the amount determined by the formula in subparagraph l of the first paragraph of section 905.0.6 in respect of the plan for the same year or such a lesser amount as is supported by the property of the plan trust, and

(ii)  the year is not the year in which the plan became a specified disability savings plan;

 (e) (subparagraph repealed);

 (f) (subparagraph repealed).

Unless the Minister decides otherwise, the Minister is deemed to have received the notification referred to in subparagraph a of the first paragraph, in relation to a disability savings plan, at the time the Minister responsible for the administration of the Canada Disability Savings Act (S.C. 2007, c. 35) receives the notification referred to in paragraph a of subsection 1.2 of section 146.4 of the Income Tax Act in relation to that plan.

2012, c. 8, s. 145; 2015, c. 21, s. 342.

905.0.4.3. If at a particular time, a plan has ceased to be a specified disability savings plan because of section 905.0.4.2, the holder of the plan may not make an election under section 905.0.4.1 until 24 months after that time.

2012, c. 8, s. 145.

905.0.4.4. The Minister may waive the application of section 905.0.4.2 or 905.0.4.3 if the Minister deems it is just and equitable to do so.

2012, c. 8, s. 145.

905.0.5. The conditions that must be satisfied for a disability savings plan of a beneficiary to be a registered disability savings plan are as follows:

 (a) before the plan is entered into and following a written application to the Minister, the issuer of the plan has received written notification from the Minister that, in the Minister's opinion, a plan whose terms are identical to the plan would, if entered into by a person eligible to enter into a disability savings plan, comply with the conditions set out in section 905.0.6;

 (b) at or before the time the plan is entered into, the issuer of the plan has been provided with the Social Insurance Number of the beneficiary under the plan and the Social Insurance Number or business number, as the case may be, of each person with which the issuer has entered into the plan; and

 (c) at the time the plan is entered into, the beneficiary under the plan is resident in Canada, except that this condition does not apply if, at that time, the beneficiary is the beneficiary under another registered disability savings plan.

Unless the Minister decides otherwise, an issuer is considered to have satisfied the condition set out in subparagraph a of the first paragraph in respect of the plan if the issuer has received, in relation to the plan, a notification from the Minister of National Revenue in accordance with paragraph a of subsection 2 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

2009, c. 15, s. 168.

905.0.6. The conditions to which subparagraph a of the first paragraph of section 905.0.5 refers are as follows:

 (a) the plan stipulates

(i)  that it is to be operated exclusively for the benefit of the beneficiary under the plan,

(ii)  that the designation of the beneficiary under the plan is irrevocable, and

(iii)  that no right of the beneficiary to receive payments from the plan is capable, either in whole or in part, of surrender or assignment;

 (b) the plan allows a person to acquire rights as a successor or assignee of a holder of the plan only if the person is

(i)  the beneficiary under the plan,

(ii)  the beneficiary's succession,

(iii)  a holder of the plan at the time the rights are acquired,

(iv)  a qualifying person in relation to the beneficiary under the plan at the time the rights are acquired, or

(v)  an individual who is the father or mother of the beneficiary under the plan and was previously a holder of the plan;

 (c) the plan provides that, if a person, other than a qualifying family member in relation to the beneficiary under the plan, who is a holder of the plan ceases to be a qualifying person in relation to the beneficiary under the plan at any time, the person ceases at that time to be a holder of the plan;

 (d) the plan provides for there to be at least one holder of the plan at all times that the plan is in existence and may provide for the beneficiary under the plan or the beneficiary's succession to automatically acquire rights as a successor or assignee of a holder in order to ensure compliance with this requirement;

 (e) the plan provides that, if a person becomes a holder of the plan after the plan is entered into, the person is prohibited, except to the extent otherwise permitted by the Minister or the Minister responsible for the administration of the Canada Disability Savings Act (S.C. 2007, c. 35), from exercising the person's rights as a holder of the plan until the issuer has been advised of the person having become a holder of the plan and been provided with the person's Social Insurance Number or business number;

 (f) the plan prohibits contributions from being made to the plan at any time if

(i)  the beneficiary is not an individual eligible for the tax credit for severe and prolonged impairment in mental or physical functions for the taxation year that includes that time, or

(ii)  the beneficiary died before that time;

 (g) the plan prohibits a contribution from being made to the plan at any time if

(i)  the beneficiary reached 59 years of age before the calendar year that includes that time,

(ii)  the beneficiary is not resident in Canada at that time, or

(iii)  the total of the contribution and all other contributions made at or before that time to the plan or to any other registered disability savings plan of the beneficiary would exceed $200,000;

 (h) the plan prohibits contributions to the plan by any person who is not a holder of the plan, except with the written consent of a holder of the plan;

 (i) the plan provides that no payments may be made from the plan other than

(i)  disability assistance payments,

(ii)  a transfer in accordance with section 905.0.16, and

(iii)  repayments under the Canada Disability Savings Act or a designated provincial program;

 (j) the plan prohibits a disability assistance payment from being made if it would result in the fair market value of the property held by the plan trust immediately after the payment being less than the assistance holdback amount in relation to the plan;

 (k) the plan provides for lifetime disability assistance payments to begin to be paid no later than the end of the calendar year in which the beneficiary under the plan reaches 60 years of age or, if the plan is entered into in or after the calendar year, in the calendar year following the calendar year in which the plan is entered into;

 (l) the plan provides that the total amount of lifetime disability assistance payments made in a calendar year, other than a specified year for the plan, must not exceed the amount determined by the formula


[A/(B + 3 - C)] + D;


 (m) the plan stipulates whether or not disability assistance payments that are not lifetime disability assistance payments are to be permitted under the plan;

 (n) the plan provides that when the total of all amounts paid under the Canada Disability Savings Act before the beginning of a calendar year to any registered disability savings plan of the beneficiary exceeds the total of all contributions made before the beginning of the calendar year to any registered disability savings plan of the beneficiary,

(i)  if the calendar year is not a specified year for the plan, the total amount of disability assistance payments made to the beneficiary under the plan in the year must not exceed the specified maximum amount for the year, except that, in calculating that total amount, a payment made following a transfer in the year from another plan in accordance with section 905.0.16 is to be disregarded if it is made;

(1)  to satisfy an undertaking described in paragraph d of section 905.0.16, or

(2)  in lieu of a payment that could otherwise have been made under the other plan in the year had the transfer not occurred, and

(ii)  (subparagraphe repealed);

(iii)  if the beneficiary under the plan reached 27 years of age, but not 59 years of age, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph i and by subparagraph j, one or more disability assistance payments be made under the plan to the beneficiary in the year;

 (n.1) the plan provides that, if the beneficiary under the plan reached 59 years of age before a calendar year, the total amount of disability assistance payments made to the beneficiary in the calendar year must not be less than the amount determined by the formula in subparagraph l in respect of the plan for the year or such lesser amount as is supported by the property of the plan trust;

 (o) the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust or an amount equal to its value to another registered disability savings plan of the beneficiary, together with all information in its possession (other than information provided to the issuer of the other plan by the Minister responsible for the administration of the Canada Disability Savings Act) that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Part and with any conditions and obligations under that Act; and

 (p) the plan provides for any amounts remaining in the plan, after taking into consideration any repayments under the Canada Disability Savings Act or a designated provincial program, to be paid to the beneficiary under the plan or the beneficiary's succession, and for the plan to cease to exist, at or before the end of the calendar year following the earlier of

(i)  the calendar year in which the beneficiary under the plan dies, and

(ii)  the first calendar year

(1)  if a valid election is made under subsection 4.1 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)), that includes the time that the election ceases because of paragraph b of subsection 4.2 of section 146.4 of that Act to be valid, or

(2)  throughout which the beneficiary has no severe and prolonged impairment in mental or physical functions the effects of which are described in paragraph a.1 of subsection 1 of section 118.3 of the Income Tax Act.

In the formula in subparagraph l of the first paragraph,

 (a) A is the fair market value of the property held by the plan trust at the beginning of the calendar year, other than annuity contracts that, at the beginning of the calendar year, are not described in paragraph b of the definition of “qualified investment” in subsection 1 of section 205 of the Income Tax Act;

 (b) B is the greater of 80 and the age in whole years of the beneficiary at the beginning of the calendar year;

 (c) C is the age in whole years of the beneficiary at the beginning of the calendar year; and

 (d) D is the aggregate of all amounts each of which is

(i)  a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year, other than an annuity contract described at the beginning of the calendar year in paragraph b of the definition of “qualified investment” in subsection 1 of section 205 of the Income Tax Act, that is paid to the plan trust in the calendar year, or

(ii)  if the periodic payment under an annuity contract described in subparagraph i is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, an amount that is a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year by the plan trust and no rights under the contract were disposed of in the calendar year.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 4.1 of section 146.4 of the Income Tax Act.

Where the calendar year 2011 or 2012 is the first calendar year throughout which the beneficiary of a registered disability savings plan has no severe and prolonged impairment in mental or physical functions the effects of which are described in paragraph a.1 of subsection 1 of section 118.3 of the Income Tax Act and the plan has not been terminated, the plan must, despite subparagraph p of the first paragraph, as it read on 28 March 2012 and any terms of the plan required by that subparagraph, be terminated on or before 31 December 2014, unless a valid election is made under subsection 4.1 of section 146.4 of the Income Tax Act.

2009, c. 15, s. 168; 2011, c. 6, s. 180; 2013, c. 10, s. 73; 2015, c. 21, s. 343.

905.0.7. A disability savings plan is deemed never to have been a registered disability savings plan unless

 (a) the issuer of the plan provides without delay notification of the plan's establishment in the prescribed form containing prescribed information to the Minister; and

 (b) if the beneficiary is the beneficiary under another registered disability savings plan at the time the plan is established, that other plan is terminated without delay.

Unless the Minister decides otherwise, an issuer of a disability savings plan is considered to have notified the Minister in the manner specified in subparagraph a of the first paragraph, in relation to the plan, if the issuer has notified, in relation to the plan, the Minister responsible for the administration of the Canada Disability Savings Act (S.C. 2007, c. 35) in accordance with paragraph a of subsection 3 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

2009, c. 15, s. 168; 2015, c. 21, s. 344.

905.0.8. For the purposes of this Title, a disability savings plan that is deemed never to have been a registered disability savings plan because of paragraph a or b of subsection 3 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) is deemed never to have been a registered disability savings plan.

2009, c. 15, s. 168.

CHAPTER II 
TAX
2009, c. 15, s. 168.

905.0.9. No tax is payable under this Part by a trust on its taxable income for a taxation year if, throughout the period of the year in which the trust is in existence, the trust is governed by a registered disability savings plan.

2009, c. 15, s. 168.

905.0.10. Despite section 905.0.9, a trust governed by a registered disability savings plan shall pay tax under this Part on its taxable income for a taxation year if the trust

 (a) has borrowed money in the year; or

 (b) has borrowed money in a preceding taxation year and has not repaid it before the beginning of the year.

2009, c. 15, s. 168.

905.0.11. If section 905.0.10 does not apply, a trust governed by a registered disability savings plan that carries on a business in a taxation year shall, despite section 905.0.9, pay tax under this Part on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than that business.

2009, c. 15, s. 168.

905.0.12. If section 905.0.10 does not apply and a trust governed by a registered disability savings plan holds, in a taxation year, a property that is not a qualified investment (within the meaning assigned to that expression for the purposes of paragraph b of subsection 5 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.))) for the trust, the trust shall, despite section 905.0.9, pay tax under this Part on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than properties that are not qualified investments for the trust and no capital gains or capital losses other than from the disposition of such properties.

2009, c. 15, s. 168; 2012, c. 8, s. 146.

905.0.13. For the purposes of sections 905.0.11 and 905.0.12, the following rules apply:

 (a) a trust's income includes the dividends described in sections 501 to 503; and

 (b) the first paragraph of section 231 must be construed as if the taxable capital gain or allowable capital loss were the total capital gain or the total capital loss, as the case may be, from the disposition of property.

2009, c. 15, s. 168.

CHAPTER III 
AMOUNT TO BE INCLUDED
2009, c. 15, s. 168.

905.0.14. If a disability assistance payment is made under a registered disability savings plan of a beneficiary, the amount by which the amount of the payment exceeds the non-taxable portion of the payment must be included,

 (a) if the beneficiary is alive at the time the payment is made, in computing the beneficiary's taxable income for the taxation year in which the payment is made; and

 (b) if the beneficiary is deceased at the time the payment is made, in computing the taxable income of the beneficiary's succession for the succession's taxation year in which the payment is made.

2009, c. 15, s. 168.

905.0.15. The non-taxable portion of a disability assistance payment made at a particular time under a registered disability savings plan of a beneficiary is the lesser of the amount of the disability assistance payment and the amount determined by the formula


A × B/C.


In the formula in the first paragraph,

 (a) A is the amount of the disability assistance payment;

 (b) B is the amount by which the aggregate of all amounts each of which is the amount of a contribution made before the particular time to any registered disability savings plan of the beneficiary exceeds the aggregate of all amounts each of which is the non-taxable portion of a disability assistance payment made before the particular time under any registered disability savings plan of the beneficiary; and

 (c) C is the amount by which the fair market value of the property held by the plan trust immediately before the disability assistance payment exceeds the assistance holdback amount in relation to the plan.

2009, c. 15, s. 168; 2011, c. 6, s. 181.

905.0.16. An amount is transferred from a registered disability savings plan (in this section referred to as the “prior plan”) of a beneficiary in accordance with this section if

 (a) the amount is transferred directly to another registered disability savings plan (in this section referred to as the “new plan”) of the beneficiary;

 (b) the prior plan ceases to exist immediately after the transfer;

 (c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the Minister responsible for the administration of the Canada Disability Savings Act (S.C. 2007, c. 35)) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Part and the issuer of the new plan confirms that it has in its possession all information provided by the issuer of the prior plan and by that Minister that is necessary for the purposes of paragraph c of subsection 8 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)); and

 (d) if the beneficiary reached 59 years of age before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make—in addition to any other disability assistance payments that would otherwise have been made under the new plan in the year—one or more disability assistance payments under the plan in the year, the total of which is equal to the amount by which the total amount of disability assistance payments that would have been required to be made under the prior plan in the year if the transfer had not occurred exceeds the total amount of disability assistance payments made under the prior plan in the year.

2009, c. 15, s. 168; 2015, c. 21, s. 345.

905.0.17. An amount transferred in accordance with section 905.0.16 is not, solely because of that transfer, to be included in computing the income of a taxpayer.

2009, c. 15, s. 168.

CHAPTER IV 
NON-COMPLIANT PLAN
2009, c. 15, s. 168.

905.0.18. A registered disability savings plan is non-compliant, at any time, if at that time

 (a) it fails to comply with a condition set out in section 905.0.6;

 (b) there is a failure to administer the plan in accordance with its terms, other than those terms which the plan is required by subparagraph i of subparagraph a of the first paragraph of section 905.0.6 to stipulate; and

 (c) a person fails to comply with conditions or obligations imposed, with respect to the plan, under the Canada Disability Savings Act (S.C. 2007, c. 35), and the Minister responsible for that Act is of the opinion that it is appropriate that the plan be considered to be non-compliant because of the failure in accordance with paragraph c of subsection 11 of section 146.4 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

2009, c. 15, s. 168.

905.0.19. If, but for this section, a registered disability savings plan would be non-compliant at a particular time because of a failure described in paragraph a or b of section 905.0.18,

 (a) the Minister may waive the application of either paragraph with respect to the failure, if it is just and equitable to do so;

 (b) the Minister may deem the failure to have occurred at a later time;

 (c) if the failure consists of the making of a contribution that is prohibited under any of subparagraphs f to h of the first paragraph of section 905.0.6, an amount equal to the amount of the contribution has been withdrawn from the plan within such period as is specified by the Minister and the Minister has approved the application of this paragraph with respect to the failure, the following rules apply:

(i)  the contribution is deemed never to have been made, and

(ii)  the withdrawal is deemed not to be a disability assistance payment and not to be in contravention of the condition set out in subparagraph i of the first paragraph of section 905.0.6; or

 (d) if the failure consists of the plan not being terminated within the period specified in subparagraph p of the first paragraph of section 905.0.6 and was due either to the issuer not being aware of the circumstances under which the plan ceases to exist or to some uncertainty as to the existence of those circumstances, the Minister may specify a later date on or before which it is reasonable to consider that the plan ceases to exist in an orderly manner and, for the purposes of paragraphs a and b of section 905.0.18, subparagraph p of the first paragraph of section 905.0.6 and the plan terms are to be read as though they required the plan to cease to exist at the date so specified.

2009, c. 15, s. 168.

905.0.20. If, at a particular time, a registered disability savings plan is non-compliant under section 905.0.18, the following rules apply:

 (a) the plan ceases, at that particular time, to be a registered disability savings plan, other than for the purpose of applying, at that particular time, section 905.0.18 and this section;

 (b) a disability assistance payment is deemed to have been made under the plan at the time (in this section referred to as the “relevant time”) immediately before the particular time to the beneficiary under the plan or, if the beneficiary is deceased at the relevant time, to the beneficiary's succession, the amount of which payment is equal to the amount by which the fair market value of the property held by the plan trust at the relevant time exceeds the assistance holdback amount in relation to the plan; and

 (c) if the plan is non-compliant because of a payment that is not in accordance with subparagraph j of the first paragraph of section 905.0.6, a disability assistance payment the amount of which is equal to the amount determined in the second paragraph and the non-taxable portion of which is deemed to be nil, is deemed to have been made under the plan at the relevant time—in addition to the payment deemed by subparagraph b to have been made—to the beneficiary under the plan or, if the beneficiary is deceased at the relevant time, to the beneficiary's succession.

The amount to which subparagraph c of the first paragraph refers is equal to the amount by which the lesser of the assistance holdback amount in relation to the plan and the fair market value of the property held by the plan trust at the relevant time exceeds the fair market value of the property held by the plan trust immediately after the particular time.

2009, c. 15, s. 168.

905.0.21. The issuer of a registered disability savings plan shall,

 (a) if a person becomes a holder of the plan after the plan is entered into, so notify the Minister in the prescribed form containing prescribed information on or before the day that is 60 days after the day on which the issuer is notified that the person has become a holder of the plan or, if it is later, the day on which the issuer is provided with the new holder's Social Insurance Number or business number;

 (b) not amend the plan before having received a written notice from the Minister that, in the Minister's opinion, a plan whose terms are identical to the amended plan would, if entered into by a person eligible to enter into a disability savings plan, comply with the conditions set out in the first paragraph of section 905.0.6;

 (c) notify the Minister in writing on or before the day that is 30 days after the day on which the issuer becomes aware that the plan is, or is likely to become, non-compliant, as determined without reference to paragraph c of section 905.0.18 and section 905.0.19;

 (d) exercise the care, prudence, diligence and skill of a reasonable person to minimize the possibility that a holder of the plan may become liable to pay tax under Part XI of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)); and

 (e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of the application of paragraph c of the definition of “qualifying person” in the first paragraph of section 905.0.3,

(i)  so notify the beneficiary under the plan without delay in writing and include in the notification information setting out the circumstances in which the holder of the plan may be replaced under section 905.0.3.1 or 905.0.3.2, and

(ii)  collect and use any information provided by the holder of the plan that is relevant to the administration and operation of the plan.

Unless the Minister decides otherwise, an issuer is considered to have satisfied the obligation imposed under subparagraph b of the first paragraph in respect of the amended plan if the issuer has received, in relation to the plan, a notice from the Minister of National Revenue in accordance with paragraph a of subsection 2 of section 146.4 of the Income Tax Act.

2009, c. 15, s. 168; 2013, c. 10, s. 74; 2015, c. 21, s. 346.

TITLE IV 
REGISTERED RETIREMENT SAVINGS PLANS
1972, c. 23.

CHAPTER I 
INTERPRETATION AND REGISTRATION
1972, c. 23; 1980, c. 13, s. 75.

905.1. In this Title,

 (a) benefit includes any amount received out of or under a retirement savings plan, whether in accordance with the terms of the plan, resulting from an amendment to or modification of the plan or resulting from the termination of the plan, other than

(i)  the portion thereof received by a person other than the annuitant that can reasonably be regarded as part of the amount included in computing the income of the annuitant by virtue of section 915.2,

(ii)  an amount received by the person with whom the annuitant entered into a contract or arrangement contemplated in the definition of retirement savings plan in subsection 1 of section 146 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) as a premium under the plan,

(ii.1)  an amount in respect of which the annuitant pays a tax under Part XI.01 of the Income Tax Act, unless the tax is waived, cancelled or refunded,

(iii)  an amount, or part thereof, received in respect of the income of the trust governed by the plan, for a taxation year contemplated in section 921.1, and

(iv)  a tax-paid amount described in subparagraph ii of paragraph c.1 that relates to interest or to another amount included in computing income otherwise than because of any of the provisions of this Title;

 (b) annuitant means, until such time after the date provided for the first payment of benefits as his spouse becomes entitled, as a consequence of his death, to receive benefits to be paid out of or under the plan, the individual referred to in the definition of retirement savings plan in subsection 1 of section 146 of the Income Tax Act for whom, under a retirement savings plan, a retirement income is to be provided, and, after the individual's death, his spouse;

 (c) issuer means the person referred to in the definition of retirement savings plan in subsection 1 of section 146 of the Income Tax Act with whom an annuitant has a contract or arrangement that is a retirement savings plan;

 (c.1) tax-paid amount, in respect of a registered retirement savings plan, means

(i)  an amount paid to a person in respect of the amount that would, if this Part were read without reference to paragraph a of section 657 and section 657.1, be income of a trust governed by the plan for a taxation year for which the trust is subject to tax under this Part because of section 921.1, or

(ii)  where the plan is a deposit with a depositary referred to in clause B of subparagraph iii of paragraph b of the definition of retirement savings plan in subsection 1 of section 146 of the Income Tax Act, and an amount is received at any time out of or under the plan by a person, the portion of the amount that may reasonably be considered to relate to interest or another amount in respect of the deposit that is required to be included in computing the income of any person, other than the annuitant, otherwise than because of any of the provisions of this Title;

 (d) (paragraph repealed);

 (e) premium has the meaning assigned by subsection 1 of section 146 of the Income Tax Act;

 (f) spousal plan, in relation to an individual, means

(i)  a registered retirement savings plan

(1)  to which the individual has paid a premium at a time when his spouse was the annuitant under the plan, or

(2)  that has received a payment out of or a transfer from a registered retirement savings plan or a registered retirement income fund that was a spousal plan in relation to the individual, or

(ii)  a registered retirement income fund that has received a payment out of or a transfer from a spousal plan in relation to the individual;

 (g) retirement income has the meaning assigned by subsection 1 of section 146 of the Income Tax Act.

1980, c. 13, s. 76; 1984, c. 15, s. 195; 1986, c. 15, s. 130; 1988, c. 18, s. 71; 1991, c. 25, s. 113; 1995, c. 49, s. 197; 2000, c. 5, s. 209; 2001, c. 53, s. 187; 2005, c. 1, s. 198; 2012, c. 8, s. 147.

905.1.1. For the purposes of this Title and paragraph a of sections 462.24, 935.3 and 935.14, a contribution made by an individual to an account of the individual, or of the individual's spouse, under a specified pension plan is deemed to be a premium paid by the individual to a registered retirement savings plan under which the individual, or the individual's spouse, as the case may be, is the annuitant.

2013, c. 10, s. 75.

905.1.2. For the purposes of section 133.4, subparagraph i of paragraph a of the definition of “excluded right or interest” in section 785.0.1, subparagraph d of the first paragraph of section 890.0.1, sections 913 and 924.0.1, paragraph b of the definition of “excluded premium” in the first paragraph of section 935.1, paragraph c of the definition of “excluded premium” in the first paragraph of section 935.12, subparagraph b of the second paragraph of section 961.17, Chapter III of Title VI.0.1 and paragraph c of section 965.0.35, an individual's account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.

2013, c. 10, s. 75; 2015, c. 21, s. 347.

905.1.3. For the purposes of sections 924.1, 931.1, 931.3 and 931.5, a payment received by an individual from a specified pension plan is deemed to be a payment received by the individual from a registered retirement savings plan.

2013, c. 10, s. 75.

905.2. Paragraph d of section 905.1, as limited in its application by subsection 2 of section 71 of the Act to again amend the Taxation Act and other fiscal legislation (1988, chapter 18), applies from 1 January 1989 only for the purposes of sections 923.1 to 923.2.1.

1991, c. 25, s. 114.

905.3. (Repealed).

1991, c. 25, s. 114; 1994, c. 22, s. 286.

906. (Repealed).

1972, c. 23, s. 669; 1991, c. 25, s. 115.

907. (Repealed).

1972, c. 23, s. 670; 1972, c. 26, s. 64; 1975, c. 21, s. 20; 1979, c. 18, s. 60; 1982, c. 5, s. 154; 1988, c. 18, s. 72; 1991, c. 25, s. 115.

908. In this Title, a refund of premiums means any amount paid out of or under a registered retirement savings plan by reason of the death of the annuitant under the plan, other than a tax-paid amount in respect of the plan, to

 (a) the individual who, immediately before the death of the annuitant, was the spouse of the annuitant, where the annuitant died before the date provided for the first payment of benefits; or

 (b) the child or grandchild of the annuitant who was, immediately before the death of the annuitant, financially dependent on the annuitant for support.

For the purposes of subparagraph b of the first paragraph, a child or grandchild of the annuitant is deemed not to be financially dependent on the annuitant at the time of the death of the annuitant if the child’s or grandchild’s income, for the taxation year preceding the taxation year in which the annuitant died, was greater than the amount determined under the formula provided for in subsection 1.1 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) for that preceding year.

1972, c. 23, s. 671; 1977, c. 26, s. 95; 1979, c. 18, s. 61; 1980, c. 13, s. 77; 1984, c. 15, s. 196; 1986, c. 15, s. 131; 1988, c. 18, s. 73; 1989, c. 5, s. 158; 1991, c. 25, s. 116; 1993, c. 64, s. 96; 1995, c. 49, s. 198; 2000, c. 5, s. 210; 2001, c. 53, s. 188; 2004, c. 8, s. 171; 2005, c. 1, s. 199.

909. (Repealed).

1972, c. 23, s. 672; 1979, c. 18, s. 62; 1980, c. 13, s. 78; 1988, c. 18, s. 74; 1991, c. 25, s. 117.

910. (Repealed).

1972, c. 23, s. 673; 1977, c. 26, s. 96; 1979, c. 18, s. 63; 1980, c. 13, s. 79; 1984, c. 15, s. 197; 1988, c. 18, s. 75; 1991, c. 25, s. 117.

910.1. (Repealed).

1982, c. 5, s. 155; 1991, c. 25, s. 117.

911. (Repealed).

1972, c. 23, s. 674; 1972, c. 26, s. 65; 1979, c. 18, s. 64; 1980, c. 13, s. 80; 1984, c. 15, s. 198; 1987, c. 67, s. 167; 1988, c. 18, s. 76; 1991, c. 25, s. 117.

912. (Repealed).

1972, c. 23, s. 675; 1991, c. 25, s. 117.

913. Where a registered retirement savings plan is revised or amended at any time to provide for the payment or transfer, before the date provided for the first payment of benefits, of any property under the plan by the issuer on behalf of the annuitant under the plan, in this section referred to as the transferor, to a registered pension plan for the benefit of the transferor or to a registered retirement savings plan or a registered retirement income fund under which the transferor is the annuitant, or to a registered retirement savings plan or a registered retirement income fund under which the spouse or former spouse of the transferor is the annuitant, where the transferor and his spouse or former spouse are living separate and apart and the payment or transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a partition of property between the transferor and his spouse or former spouse in settlement of rights arising out of, or on the breakdown of, their marriage, the amount paid or transferred on behalf of the transferor shall not, by reason only of such payment or transfer, be included in computing the income of the transferor or his spouse or former spouse and no deduction may be made in computing the income of any individual under Chapter III of Title II of Book III in respect of the amount so paid or transferred.

1972, c. 23, s. 676; 1972, c. 26, s. 66; 1977, c. 26, s. 97; 1979, c. 18, s. 65; 1980, c. 13, s. 81; 1984, c. 15, s. 199; 1988, c. 18, s. 77; 1991, c. 25, s. 118; 1994, c. 22, s. 287; 1995, c. 49, s. 236; 1997, c. 14, s. 290.

914. Where a registered retirement savings plan is revised, amended or, for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), deemed to have been amended under subsection 13.2 of section 146 of that Act, or where another plan is substituted therefor and the resultant plan is deemed, under subsection 12 of that section 146, not to be a registered retirement savings plan for the purposes of that Act, the following rules apply:

 (a) the new plan is deemed, for the purposes of this Part, not to be a registered retirement savings plan, and

 (b) the individual who was the annuitant under the plan before such operation shall, in computing his income for the taxation year in which the operation took place, include as income received at the time of that operation, an amount equal to the fair market value of all the property of the plan immediately before that time.

1972, c. 23, s. 677; 1977, c. 26, s. 98; 1978, c. 26, s. 168; 1988, c. 18, s. 78; 1991, c. 25, s. 118; 1998, c. 16, s. 212.

914.1. (Repealed).

1984, c. 15, s. 200; 1991, c. 25, s. 119.

915. For the purposes of section 914, an arrangement under which the payment of an amount is made on the security of a right under the plan or which provides for the release or extinction, in whole or in part, of a right or obligation under a registered retirement savings plan, either in exchange or substitution for any right or obligation, or otherwise, except an arrangement the sole object and effect of which is to revise or amend the plan is deemed to be another plan substituted for a registered retirement savings plan.

1972, c. 23, s. 678.

915.1. (Repealed).

1979, c. 18, s. 66; 1980, c. 13, s. 82; 1988, c. 18, s. 79.

915.2. Where the annuitant under a registered retirement savings plan dies after 29 June 1978 and the date provided by the plan for the first payment of benefits is after 29 June 1978, the annuitant is deemed to have received, immediately before death, as a benefit out of or under a registered retirement savings plan, an amount equal to the amount by which the fair market value of all the property of the plan at the time of death exceeds, where the annuitant died after the date provided by the plan for the first payment of benefits, the fair market value at the time of the death of the portion of the property that, as a consequence of the death, becomes receivable by a person who was the annuitant's spouse immediately before the death, or would become so receivable should that person survive throughout the entire period for which a guaranteed term annuity is provided for under the plan.

However, the annuitant contemplated in the first paragraph may deduct from the amount he is deemed to have received under that paragraph an amount not exceeding the amount determined by the formula


A × {1 − [(B + C − D) / (B + C)]}.


For the purposes of the formula in the second paragraph,

 (a) A is the aggregate of

(i)  all refunds of premiums in respect of the plan,

(ii)  all tax-paid amounts in respect of the plan paid to individuals who, otherwise than because of section 930, received refunds of premiums in respect of the plan, and

(iii)  all amounts each of which is a tax-paid amount in respect of the plan paid to the legal representative of the annuitant under the plan, to the extent that the legal representative would have been entitled to designate that tax-paid amount under section 930 if tax-paid amounts were not excluded in determining refunds of premiums;

 (b) B is the fair market value of the property of the plan at the particular time that is the later of the end of the first calendar year that begins after the death of the annuitant and the time immediately after the last time that any refund of premiums in respect of the plan is paid out of or under the plan;

 (c) C is the aggregate of all amounts paid out of or under the plan after the death of the annuitant and before the particular time; and

 (d) D is the lesser of the fair market value of the property of the plan at the time of the annuitant's death and the aggregate of all amounts determined in respect of the plan under paragraphs b and c.

1979, c. 18, s. 66; 1980, c. 13, s. 83; 1995, c. 49, s. 199; 2000, c. 5, s. 211.

915.3. (Repealed).

1979, c. 18, s. 66; 1988, c. 18, s. 79.

915.4. Where an annuitant under a registered retirement savings plan dies after the date provided for the first payment of benefits and where his legal representative, as a consequence of the death, becomes entitled to receive an amount out of or under the plan for the benefit of the spouse of the annuitant, the spouse is deemed to have become the annuitant under the plan as a consequence of the annuitant's death, and such amount is deemed to be receivable by the spouse and, when paid, to be received by the spouse as a benefit under the plan and not to be received by any other person.

This section applies only if the legal representative and the spouse of the annuitant file with the Minister an election to that effect in prescribed form.

1980, c. 13, s. 84; 2001, c. 53, s. 189.

916. (Repealed).

1972, c. 23, s. 679; 1991, c. 25, s. 120.

917. Notwithstanding any other provision of this Title, an amount received in a taxation year as a benefit under a registered retirement savings plan which was not, at the end of the year in which the plan started, a registered retirement savings plan, is deemed to have been received in the year otherwise than as a benefit or other payment under a registered retirement savings plan, except for any prescribed part.

1972, c. 23, s. 680; 1982, c. 5, s. 156; 1991, c. 25, s. 121.

917.1. Where, at any particular time, an amount is credited or added to a deposit with a depositary referred to in subparagraph iii of paragraph b of the definition of retirement savings plan in subsection 1 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) as interest or other income in respect of the deposit and the deposit is, at that time, a registered retirement savings plan the annuitant under which was alive during the calendar year in which the amount is credited or added or during the preceding calendar year, the amount is deemed not to be received by the annuitant or any other person solely because of the crediting or adding.

1991, c. 25, s. 122; 1995, c. 49, s. 200.

918. (Repealed).

1977, c. 26, s. 99; 1988, c. 18, s. 80; 1991, c. 25, s. 123.

CHAPTER II 
TAX
1972, c. 23.

919. No tax is payable by a trust under this Part for a taxation year if throughout the period of the year during which it is in existence it is governed by a registered retirement savings plan.

1972, c. 23, s. 681; 1975, c. 22, s. 224.

920.  (1) Notwithstanding section 919, a trust contemplated therein must pay tax under this Part on its taxable income for a taxation year if it borrows money in the year or has, since 18 June 1971, borrowed money which it has not repaid before the beginning of the year.

 (2) The rule provided for in subsection 1 does not apply in the case of borrowed money used in carrying on a business.

1972, c. 23, s. 682; 1995, c. 49, s. 201.

921. Where section 920 does not apply, a trust governed by a registered retirement savings plan that carries on a business in a taxation year must, notwithstanding section 919, pay tax under this Part on the amount by which the amount that its taxable income for the year would be if it had no incomes or losses from sources other than that business, exceeds such portion of the taxable income as can reasonably be considered to be income from, or from the disposition of, qualified investments within the meaning of subsection 1 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement).

1972, c. 23, s. 683; 1995, c. 49, s 202.

921.1. Notwithstanding section 919, a trust governed by a registered retirement savings plan must pay tax under this Part on its taxable income for each taxation year after the year following the year in which the last annuitant under the plan died.

1980, c. 13, s. 85; 1995, c. 49, s. 202.

921.2. Despite section 919, where, in a taxation year, a trust governed by a registered retirement savings plan holds a property that is a non-qualified investment for the purposes of subsection 10.1 of section 146 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), 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 non-qualified investments and no capital gains or capital losses other than from dispositions of non-qualified investments.

1987, c. 67, s. 168; 1991, c. 25, s. 124; 2012, c. 8, s. 148.

921.3. For the purposes of section 921.2,

 (a) the income of a trust includes dividends described in sections 501 to 503;

 (b) the first paragraph of section 231 shall be interpreted as if the taxable capital gain or the allowable capital loss represented the total capital gain or total capital loss, as the case may be, resulting from the disposition of a property.

1987, c. 67, s. 168; 1990, c. 59, s. 326.

CHAPTER III 
DEDUCTIONS
1972, c. 23.

922. An individual may deduct, in computing his income for a taxation year, the amount that, by virtue of subsection 5 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), is allowed as a deduction for the year in computing his income for the purposes of the said Act.

1972, c. 23, s. 684; 1974, c. 18, s. 29; 1975, c. 22, s. 225; 1976, c. 18, s. 15; 1977, c. 26, s. 100; 1982, c. 5, s. 157; 1984, c. 15, s. 201; 1988, c. 18, s. 81; 1991, c. 25, s. 125.

922.1. An individual may deduct in computing the individual’s income for a taxation year, the amount by which the amount that the individual designates for the year under subsection 3 of section 146.01 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) exceeds the amount that the individual designates for the year under section 935.3, to the extent that the excess may reasonably be considered to be paid as reimbursement of an amount that is an eligible amount as defined in subsection 1 of that section 146.01 and that was included, because of the application of section 929, in computing the individual’s income for the taxation year in which it was received by the individual.

No individual may benefit from the deduction provided for in the first paragraph unless the individual encloses, with the fiscal return the individual is required to file under section 1000 for the year, a copy of the document the individual is required to file with the Minister of Revenue of Canada under subsection 3 of section 146.01 of the Income Tax Act of Canada.

2001, c. 53, s. 190.

923. An individual may deduct, in computing his income for a taxation year, the amount that, by virtue of subsection 5.1 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), is allowed as a deduction for the year in computing his income for the purposes of the said Act.

1975, c. 21, s. 21; 1977, c. 26, s. 101; 1991, c. 25, s. 125.

923.0.1. If an individual's entitlement to benefits under a defined benefit provision of a registered pension plan is transferred, after 28 February 2009 and before 1 January 2011, in accordance with section 965.0.8, there may be deducted in computing the individual's income for a taxation year that ends on or after the day on which the transfer was made, in respect of a premium paid by the individual to a registered retirement savings plan under which the individual is the annuitant, the amount that is allowed as a deduction for the year in computing the individual's income for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) under subsection 5.2 of section 146 of that Act.

A premium referred to in the first paragraph that is paid before 1 January 2013 is deemed, if the individual makes a valid election under subsection 5.201 of section 146 of the Income Tax Act, in respect of the premium, to have been paid in the taxation year in which the transfer referred to in that paragraph was made and not in the taxation year in which it was actually paid.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 5.201 of section 146 of the Income Tax Act.

2013, c. 10, s. 76.

923.1. (Repealed).

1986, c. 15, s. 132; 1987, c. 67, s. 169.

923.2. (Repealed).

1986, c. 15, s. 132; 1986, c. 19, s. 170; 1987, c. 67, s. 169.

923.2.1. (Repealed).

1986, c. 19, s. 171; 1987, c. 67, s. 169.

923.3. (Repealed).

1986, c. 15, s. 132; 1987, c. 67, s. 169.

923.4. (Repealed).

1991, c. 25, s. 126; 1999, c. 83, s. 124.

923.5. An individual may deduct, in computing his income for a taxation year, the amount that, by virtue of subsection 6.1 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), is allowed as a deduction for the year in computing his income for the purposes of the said Act.

1991, c. 25, s. 126.

924. An individual may deduct, in computing his income for a taxation year, the amount that, by virtue of subsection 8.2 of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), is allowed as a deduction for the year in computing his income for the purposes of the said Act.

1977, c. 26, s. 102; 1984, c. 15, s. 202; 1988, c. 18, s. 82; 1991, c. 25, s. 127.

924.0.1. Where, at any time in a taxation year, an individual has received a payment from a registered retirement savings plan or a registered retirement income fund in respect of all or any portion of a premium paid by the individual to a registered retirement savings plan and the payment has been deducted in computing the income of the individual for the year under section 924, the premium or portion thereof, as the case may be, is deemed, for the purposes of sections 931.1 and 961.17.0.1, after that time, not to have been a premium paid by the individual to a registered retirement savings plan.

1991, c. 25, s. 128.

924.1. Where, in respect of an amount required at any time in a taxation year to be included in computing the income of the spouse of an individual, all or part of a premium is, by virtue of section 931.1, included in computing the individual's income for the year, the following rules apply:

 (a) the premium or part thereof, as the case may be, is deemed, for the purposes of sections 931.1 and 961.17.0.1, after that time, not to have been a premium paid to a registered retirement savings plan under which the individual's spouse is the annuitant;

 (b) an amount equal to the premium or part thereof, as the case may be, may be deducted in computing the income of the spouse for the year.

1988, c. 18, s. 82; 1991, c. 25, s. 129.

924.2. If an individual who is an annuitant under a registered retirement savings plan dies before the date provided for the first payment of benefits under the plan, there may be deducted in computing the individual's income for the taxation year in which the individual dies an amount not exceeding the amount determined, after all amounts payable under the plan have been paid, by the formula


A - B.


In the formula in the first paragraph,

 (a) A is the aggregate of all amounts each of which is

(i)  the amount deemed by the first paragraph of section 915.2 to have been received by the individual as a benefit out of or under the plan,

(ii)  an amount (other than an amount described in subparagraph iii) received, after the death of the individual, by another individual as a benefit out of or under the plan and included under section 929 in computing the other individual's income, or

(iii)  a tax-paid amount in respect of the plan; and

 (b) B is the aggregate of all amounts paid out of or under the plan after the death of the individual who is the annuitant.

2010, c. 5, s. 90.

924.3. Unless the Minister has waived in writing the application of this section with respect to all or any portion of the amount determined in section 924.2, that section does not apply in respect of an individual who is an annuitant under a registered retirement savings plan if

 (a) after the death of the individual, a trust governed by the plan held an investment that was a non-qualified investment for the purposes of section 146 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)); or

 (b) the last payment out of or under the plan was made after the end of the year following the year in which the individual died.

2010, c. 5, s. 90.

925. (Repealed).

1972, c. 23, s. 685; 1973, c. 17, s. 108; 1975, c. 21, s. 22; 1984, c. 15, s. 203; 1988, c. 18, s. 83; 1990, c. 7, s. 80; 1991, c. 25, s. 130.

926. (Repealed).

1972, c. 23, s. 686; 1978, c. 26, s. 169; 1988, c. 18, s. 84; 1991, c. 25, s. 131; 2012, c. 8, s. 149.

927. (Repealed).

1972, c. 23, s. 687; 1991, c. 25, s. 131; 2012, c. 8, s. 149.

928.  (1) Where, in a taxation year, a loan for which a trust governed by a registered retirement savings plan 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, under section 933, in computing the income of the individual who is the annuitant under the plan, the individual may deduct, in computing his income for the year, the amount by which the amount so included in computing his income in consequence of the trust's using or permitting to be used the property as security for the loan exceeds the net loss sustained by the trust in consequence of its using or permitting to be used the property as security for the loan.

 (2) The loss contemplated in subsection 1 does not however include payments made by the trust as interest or a change in the fair market value of the property.

1972, c. 23, s. 688; 1991, c. 25, s. 132.

CHAPTER IV 
INCLUDED AMOUNTS
1972, c. 23.

929. An individual shall include in computing the individual’s income for a taxation year an amount received by the individual in the year as a benefit out of or under a registered retirement savings plan, other than an amount included under section 914 in computing the individual’s income and an excluded withdrawal, as defined in the first paragraph of section 935.1 or 935.12, in respect of the individual.

1972, c. 23, s. 689; 1975, c. 22, s. 226; 1978, c. 26, s. 170; 1988, c. 18, s. 85; 1991, c. 25, s. 133; 1994, c. 22, s. 288; 2001, c. 53, s. 191.

929.1. Notwithstanding sections 1010 to 1011, if a designated withdrawal, as defined in the first paragraph of section 935.1, or an amount referred to in paragraph a of the definition of eligible amount in the first paragraph of section 935.12 is received by an individual in a taxation year and, at any time after that year, it is determined that the amount is not an excluded withdrawal, as defined in the first paragraph of section 935.1 or 935.12, such assessment, reassessment or additional assessment of tax, interest and penalties shall be made by the Minister as is necessary to give effect to the determination.

1994, c. 22, s. 289; 2001, c. 53, s. 192.

930. If an amount paid out of or under a registered retirement savings plan is received by the legal representative of a deceased individual who was an annuitant under the plan and that amount would have been a refund of premiums had it been paid under the plan to an individual who is a beneficiary, within the meaning of the second paragraph of section 646, of the annuitant's succession, that amount is, to the extent that it is so designated jointly by the legal representative and the individual in the prescribed form filed with the Minister, deemed to be received by the individual and not by the legal representative, at the time it is so received by the legal representative, as a benefit that is a refund of premiums.

1973, c. 17, s. 109; 1980, c. 13, s. 86; 1988, c. 18, s. 85; 1998, c. 16, s. 251; 2001, c. 53, s. 193; 2009, c. 15, s. 169.

931. (Repealed).

1973, c. 17, s. 109; 1980, c. 13, s. 87.

931.1. Where, at any time in a taxation year, a particular amount in respect of a registered retirement savings plan that is a spousal plan in relation to an individual is required, by reason of section 914 or 929, to be included in computing the income of the individual's spouse before the date provided for the first payment of benefits under the plan or as a payment in full or partial commutation of a retirement income under the plan and the individual is not an individual who is living apart from his spouse at that time because of the breakdown of their marriage, the individual shall include at that time, in computing his income for the year, the lesser of the following amounts:

 (a) the aggregate of all amounts each of which is a premium paid by him in the year or in one of the two preceding taxation years to a registered retirement savings plan under which his spouse was the annuitant at the time the premium was paid, and

 (b) the particular amount.

1978, c. 26, s. 171; 1986, c. 15, s. 133; 1986, c. 19, s. 172; 1988, c. 18, s. 86; 1991, c. 25, s. 134; 1995, c. 1, s. 95.

931.2. (Repealed).

1978, c. 26, s. 171; 1988, c. 18, s. 86; 1991, c. 25, s. 135.

931.3. Where an individual has paid more than one premium described in section 931.1, such a premium or part thereof paid by him at any time is deemed to have been included in computing his income by virtue of the said section before premiums or parts thereof paid by him after that time.

1978, c. 26, s. 171; 1988, c. 18, s. 86.

931.4. (Repealed).

1978, c. 26, s. 171; 1988, c. 18, s. 87.

931.5. Section 931.1 does not apply

 (a) in respect of an individual at any time during the year in which the individual dies;

 (b) in respect of an individual where either the individual or his spouse is not resident in Canada at the time referred to in the said section;

 (c) in respect of amounts paid out of or under a new plan referred to in section 914 to which the first paragraph of the said section applied before 26 May 1976;

 (d) to any payment that is received in full or partial commutation of a registered retirement income fund or a registered retirement savings plan and in respect of which a deduction was made under paragraph f of section 339 if, where the deduction was in respect of the acquisition of an annuity, the terms thereof provide that it cannot be commuted, and it is not commuted, in whole or in part within three years after the acquisition thereof;

 (e) in respect of an amount that is deemed, under the first paragraph of section 915.2, to have been received by an annuitant under a registered retirement savings plan immediately before his death.

1978, c. 26, s. 171; 1988, c. 18, s. 88; 1991, c. 25, s. 136.

932.  (1) Where a trust governed by a registered retirement savings plan, in a taxation year, disposes of property for no consideration or for a consideration less than its fair market value at that time, the annuitant under the plan shall include in his income for the year the difference between that value and that consideration.

 (2) The rule provided in subsection 1 applies if the trust acquires a property for a consideration greater than its fair market value.

1972, c. 23, s. 690.

933. If, at any time in a taxation year, a trust governed by a registered retirement savings plan uses or permits to be used any property of the trust as security for a loan, the individual who is an annuitant under the plan at that time shall include, in computing the individual's income for the year, the fair market value of the property at the time it commenced to be so used.

1972, c. 23, s. 691; 1980, c. 13, s. 88; 1988, c. 18, s. 89; 1991, c. 25, s. 137; 2012, c. 8, s. 150.

CHAPTER V 
Repealed, 1991, c. 25, s. 138.
1991, c. 25, s. 138.

934. (Repealed).

1972, c. 23, s. 692; 1972, c. 26, s. 67; 1975, c. 22, s. 227; 1982, c. 5, s. 158; 1991, c. 25, s. 138.

935. (Repealed).

1972, c. 23, s. 693; 1988, c. 18, s. 90; 1991, c. 25, s. 138.

TITLE IV.1 
HOME BUYERS' PLAN
1994, c. 22, s. 290.

CHAPTER I 
INTERPRETATION AND GENERALITIES
1994, c. 22, s. 290.

935.1. In this Title,

annuitant has the meaning assigned by paragraph b of section 905.1;

benefit has the meaning assigned by paragraph a of section 905.1;

completion date, in respect of an amount received by an individual, means

 (a) where the amount was received before 2 March 1993, 1 October 1993;

 (b) where the amount was received after 1 March 1993 and before 2 March 1994, 1 October 1994; and

 (c) in any other case, 1 October of the calendar year following the calendar year in which the amount was received;

designated withdrawal of an individual is an amount received by the individual, as a benefit out of or under a registered retirement savings plan, pursuant to the individual's written request in the prescribed form referred to in paragraph a of the definition of “eligible amount” as that definition read in its application to amounts received before 1 January 1999, paragraph a of the definition of “regular eligible amount” or paragraph a of the definition of “supplemental eligible amount”;

eligible amount of an individual means a regular eligible amount or supplemental eligible amount of the individual;

excluded premium in respect of an individual means a premium under a registered retirement savings plan where the premium

 (a) was designated by the individual for the purposes of paragraph j, j.1, j.2 or l of section 60 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

 (b) was an amount transferred directly from a registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan;

 (c) was deductible under section 923.5 in computing the individual's income for any taxation year; or

 (d) was deducted in computing the individual's income for the taxation year 1991;

excluded withdrawal of an individual means

 (a) an eligible amount received by the individual;

 (b) a particular amount, other than an eligible amount, received while the individual was resident in Canada and in a calendar year if

(i)  the particular amount would be an eligible amount of the individual if the definition of “regular eligible amount” were read without reference to paragraphs c and g thereof and the definition of “supplemental eligible amount” were read without reference to paragraphs d and f thereof,

(ii)  a payment, other than an excluded premium, equal to the particular amount is made by the individual under a retirement savings plan that is, at the end of the taxation year of the payment, a registered retirement savings plan under which the individual is the annuitant,

(iii)  the payment is made before the particular time that is

(1)  if the individual was not resident in Canada at the time the individual filed a fiscal return for the taxation year in which the particular amount was received, the earlier of the end of the following calendar year and the time at which the individual filed the fiscal return,

(2)  where subparagraph 1 does not apply and the particular amount would, if subparagraph 1 of subparagraph ii of subparagraph c of the first paragraph of section 935.2 were read without the words “and the individual or the specified disabled person acquires the qualifying home or a replacement property for the qualifying home before the day that is one year after that completion date”, be an eligible amount, the end of the second following calendar year, and

(3)  in any other case, the end of the following calendar year, and

(iv)  either

(1)  if the particular time is before 1 January 2000, the payment is made, as a repayment of the particular amount, to the issuer of a registered retirement savings plan from which the particular amount was received, no other payment is made as a repayment of the particular amount and that issuer is notified of the payment in a prescribed form submitted to the issuer at the time the payment is made, or

(2)  the payment is made after 31 December 1999 and before the particular time and the payment, and no other payment, is designated under this subparagraph as a repayment of the particular amount in a prescribed form filed with the Minister on or before the particular time or before such later time as is acceptable to the Minister; or

 (c) an amount, other than an eligible amount, that is received in a calendar year before the calendar year 1999 and that would be an eligible amount of the individual if the definition of “eligible amount”, as it applied to amounts received before 1 January 1999, were read without reference to paragraphs c and e thereof, where the individual

(i)  died before the end of the following calendar year, and

(ii)  was resident in Canada throughout the period that began immediately after the amount was received and ended at the time of the death;

issuer has the meaning assigned by paragraph c of section 905.1;

participation period of an individual means each period that begins at the beginning of a calendar year in which the individual receives an eligible amount and that ends immediately before the beginning of the first subsequent calendar year at the beginning of which the individual's specified balance is nil;

premium has the meaning assigned by paragraph e of section 905.1;

qualifying home means

 (a) a housing unit located in Canada; or

 (b) a share of the capital stock of a housing cooperative, the holder of which is entitled to possession of a housing unit located in Canada;

regular eligible amount of an individual means an amount received at a particular time by the individual as a benefit out of or under a registered retirement savings plan if

 (a) the amount is received pursuant to the individual's written request in a prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence;

 (b) the individual entered into an agreement in writing before the particular time for the acquisition of the qualifying home or with respect to its construction;

 (c) the individual acquires the qualifying home or a replacement property for the qualifying home before the completion date in respect of the amount received by the individual, or dies before the end of the calendar year that includes the completion date in respect of the amount;

 (d) neither the individual nor the individual's spouse acquired the qualifying home more than 30 days before the particular time;

 (e) the individual did not have an owner-occupied home in the period that began on the first day of the fourth preceding calendar year that included the particular time, and that ended on the 31st day before the particular time;

 (f)  the individual's spouse did not, in the period referred to in paragraph e, have an owner-occupied home that was inhabited by the individual during the spouse's marriage to the individual, or that was a share of the capital stock of a housing cooperative that relates to a housing unit inhabited by the individual during the spouse's marriage to the individual;

 (g) the individual

(i)  acquired the qualifying home before the particular time and is resident in Canada at the particular time, or

(ii)  is resident in Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual's death and the earliest time at which the individual acquires the qualifying home or a replacement property for the qualifying home;

 (h) the aggregate of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000; and

 (i) the individual's specified balance at the beginning of the calendar year that includes the particular time is nil;

replacement property for a particular qualifying home in respect of an individual, or of a specified disabled person in respect of the individual, means another qualifying home that

 (a) the individual or the specified disabled person agrees to acquire, or begins the construction of, at a particular time that is after the latest time that the individual made a request described in the definition of “designated withdrawal” in respect of the particular qualifying home;

 (b) at the particular time, the individual intends to be used by the individual or the specified disabled person as a principal place of residence not later than one year after its acquisition; and

 (c) none of the individual, the individual's spouse, the specified disabled person or that person's spouse had acquired before the particular time;

specified balance of an individual at any time means the amount by which the aggregate of all eligible amounts received by the individual at or before that time exceeds the aggregate of all amounts designated under section 935.3 by the individual for taxation years that ended before that time, and all amounts each of which is included under sections 935.4 and 935.5 in computing the individual's income for a taxation year that ended before that time;

specified disabled person, in respect of an individual at any time, means a person who

 (a) is the individual or is related at that time to the individual; and

 (b) would be entitled to a deduction under subsection 1 of section 118.3 of the Income Tax Act in computing the person's tax payable under Part I of this Act for the person's taxation year that includes that time if that subsection were read without reference to its paragraph c;

supplemental eligible amount of an individual means an amount received at a particular time by the individual as a benefit out of or under a registered retirement savings plan if

 (a) the amount is received pursuant to the individual's written request in a prescribed form identifying a specified disabled person in respect of the individual and setting out the location of a qualifying home that has begun to be used by that person as a principal place of residence, or that the individual intends to be used by that person as a principal place of residence not later than one year after its first acquisition after the particular time;

 (b) the purpose of receiving the amount is to enable the specified disabled person to live in a dwelling that is more accessible by that person or in which that person is more mobile or functional, or in an environment better suited to the personal needs and care of that person;

 (c) the individual or the specified disabled person entered into an agreement in writing before the particular time for the acquisition of the qualifying home or with respect to its construction;

 (d) either

(i)  the individual or the specified disabled person acquires a qualifying home or a replacement property for the qualifying home after 31 December 1998 and before the completion date in respect of the amount received by the individual, or

(ii)  the individual dies before the end of the calendar year that includes the completion date in respect of the amount received by the individual;

 (e) none of the individual, the spouse of the individual, the specified disabled person or the spouse of that person acquired the qualifying home more than 30 days before the particular time;

 (f) either

(i)  the individual or the specified disabled person acquired the qualifying home before the particular time and the individual is resident in Canada at the particular time, or

(ii)  the individual is resident in Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual's death and the earliest time at which the individual or the specified disabled person acquires the qualifying home or a replacement property for the qualifying home;

 (g) the aggregate of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000; and

 (h) the individual's specified balance at the beginning of the calendar year that includes the particular time is nil.

In this Title, a reference to a qualifying home that is a share described in paragraph b of the definition of “qualifying home” in the first paragraph means, where the context so requires, the housing unit to which that share relates.

1994, c. 22, s. 290; 1995, c. 49, s. 203; 1996, c. 39, s. 237; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 212; 2001, c. 53, s. 194; 2009, c. 5, s. 383; 2010, c. 5, s. 91; 2012, c. 8, s. 151; 2013, c. 10, s. 77.

935.2. For the purposes of this Title,

 (a) an individual is deemed to have acquired a qualifying home if the individual acquired it jointly with one or more other persons;

 (a.1) an individual is deemed to have an owner-occupied home at any time where, at that time, the individual owns, whether jointly with another person or otherwise, a housing unit or a share of the capital stock of a housing cooperative and the housing unit is inhabited by the individual as the individual's principal place of residence at that time, or the share was acquired for the purpose of acquiring a right to possess a housing unit owned by the cooperative and that unit is inhabited by the individual as the individual's principal place of residence at that time;

 (b) where an individual agrees to acquire a housing unit held in co-ownership, the individual is deemed to have acquired it on the day the individual is entitled to take possession of it;

 (c) except for the purposes of subparagraph ii of paragraph g of the definition of regular eligible amount in the first paragraph of section 935.1 and of subparagraph ii of paragraph f of the definition of supplemental eligible amount in that paragraph, an individual or a specified disabled person in respect of the individual is deemed to have acquired, before the completion date in respect of a designated withdrawal received by the individual, the qualifying home in respect of which the designated withdrawal was received if

(i)  neither a qualifying home nor a replacement property for the qualifying home was acquired by the individual or the specified disabled person before that completion date, and

(ii)  either

(1)  the individual or the specified disabled person is obliged under the terms of a written agreement in effect on that completion date to acquire the qualifying home, or a replacement property for the qualifying home, on or after that date, and the individual or the specified disabled person acquires the qualifying home or a replacement property for the qualifying home before the day that is one year after that completion date, or

(2)  the individual or the specified disabled person made payments to persons with whom the individual was dealing at arm’s length, in the period described in the second paragraph, in respect of the construction of the qualifying home or a replacement property for the qualifying home, and the aggregate of all payments so made was not less than the aggregate of all designated withdrawals that were received by the individual in respect of the qualifying home;

 (d) (subparagraph repealed);

 (e) (subparagraph repealed);

 (f) an amount received by an individual in a particular calendar year is deemed to have been received by the individual at the end of the preceding calendar year and not at any other time if

(i)  the amount is received in January of the particular year or at such later time as is acceptable to the Minister,

(ii)  the amount would not be an eligible amount if this Title were read without reference to this paragraph, and

(iii)  the amount would be an eligible amount if the definition of regular eligible amount in the first paragraph of section 935.1 were read without reference to subparagraph i thereof and the definition of supplemental eligible amount in that paragraph were read without reference to paragraph h thereof.

The period to which subparagraph 2 of subparagraph ii of subparagraph c of the first paragraph refers is the period that begins at the time the individual first benefited from a designated withdrawal in respect of the qualifying home and that ends before the completion date in respect of the designated withdrawal.

1994, c. 22, s. 290; 1995, c. 49, s. 204; 1996, c. 39, s. 238; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 213; 2001, c. 53, s. 195.

CHAPTER II 
REPAYMENTS OF ELIGIBLE AMOUNTS AND AMOUNTS TO BE INCLUDED
1994, c. 22, s. 290.

935.3. An individual may designate a single amount for a taxation year in a prescribed form filed with the fiscal return the individual is required to file under section 1000 for the year, if the amount does not exceed the lesser of

 (a) the aggregate of all amounts, other than excluded premiums, repayments to which paragraph b of the definition of excluded withdrawal in the first paragraph of section 935.1 applies and amounts paid by the individual in the first 60 days of the year that can reasonably be considered to have been deducted in computing the individual’s income, or designated under this section, for the preceding taxation year, paid by the individual in the year or within 60 days after the end of the year under a retirement savings plan that is at the end of the year or the following taxation year a registered retirement savings plan under which the individual is the annuitant; and

 (b) the amount by which

(i)  the aggregate of all eligible amounts received by the individual before the end of the year exceeds

(ii)  the aggregate of

(1)  all amounts designated by the individual under this section for preceding taxation years, and

(2)  all amounts each of which is an amount included in computing the income of the individual under section 935.4 or 935.5 for a preceding taxation year.

1994, c. 22, s. 290; 1996, c. 39, s. 239; 1997, c. 31, s. 88; 2001, c. 53, s. 196.

935.4. An individual shall include in computing the income of the individual for a particular taxation year included in a particular participation period of the individual the amount determined by the formula


[(A − B − C) / (15 − D)] − E.


For the purposes of the formula in the first paragraph,

 (a) A is

(i)  an amount equal to zero where

(1)  the individual died or ceased to be resident in Canada in the particular year, or

(2)  the completion date in respect of an eligible amount received by the individual was in the particular year; and

(ii)  in any other case, the aggregate of all eligible amounts received by the individual in preceding taxation years included in the particular participation period;

 (b) B is

(i)  if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, an amount equal to zero, and

(ii)  in any other case, the aggregate of all amounts each of which is designated under section 935.3 by the individual for a preceding taxation year included in the particular participation period;

 (c) C is the aggregate of all amounts each of which is an amount included under this section or section 935.5 in computing the income of the individual for a preceding taxation year included in the particular participation period;

 (d) D is the lesser of 14 and the number of taxation years of the individual ending in the period beginning on the following dates and ending at the beginning of the particular year:

(i)  where the completion date in respect of an eligible amount received by the individual was before 1 January 1995, 1 January 1995, and

(ii)  in any other case, 1 January of the first calendar year beginning after the completion date in respect of an eligible amount received by the individual; and

 (e) E is

(i)  (subparagraph repealed);

(ii)  if the completion date in respect of an eligible amount received by the individual was in the preceding taxation year, the aggregate of all amounts each of which is designated under section 935.3 by the individual for the particular year or a preceding taxation year included in the particular participation period, and

(iii)  in any other case, the amount designated under section 935.3 by the individual for the particular year.

1994, c. 22, s. 290; 1995, c. 49, s. 205; 1996, c. 39, s. 240; 2001, c. 53, s. 197.

935.5. If at a particular time in a taxation year an individual ceases to be resident in Canada, the individual shall include in computing the income of the individual for the period in the year during which the individual was resident in Canada the amount by which the aggregate of all amounts each of which is an eligible amount received by the individual in the year or a preceding taxation year exceeds the amount determined under the second paragraph.

The amount to which the first paragraph refers is the aggregate of

 (a) all amounts designated under section 935.3 by the individual in respect of amounts paid not later than 60 days after the particular time and before the individual files a fiscal return for the year; and

 (b) all amounts included under section 935.4 or this section in computing the income of the individual for preceding taxation years.

1994, c. 22, s. 290; 1996, c. 39, s. 241; 2001, c. 53, s. 198.

935.6. If an individual dies at a particular time in a taxation year, there shall be included in computing the income of the individual for the year the amount by which the individual’s specified balance immediately before that time exceeds the amount designated under section 935.3 by the individual for the year.

1994, c. 22, s. 290; 2001, c. 53, s. 199.

935.7. If a spouse of an individual was resident in Canada immediately before the individual’s death at a particular time in a taxation year and the spouse and the individual’s legal representative jointly so elect in writing in the individual’s fiscal return filed under this Part for the year, the following rules apply:

 (a) section 935.6 does not apply in respect of the individual,

 (b) the spouse is deemed to have received a particular eligible amount at the particular time equal to the amount that, but for this section, would be determined under section 935.6 in respect of the individual;

 (c) for the purposes of section 935.4 and paragraph d, the completion date in respect of the particular amount is deemed to be

(i)  if the spouse received an eligible amount before the death, other than an eligible amount received in a participation period of the spouse that ended before the beginning of the year, the completion date in respect of that amount, and

(ii)  in any other case, the completion date in respect of the last eligible amount received by the individual; and

 (d) for the purposes of section 935.4, the completion date in respect of each eligible amount received by the spouse, after the death and before the end of the spouse’s participation period that includes the time of the death, is deemed to be the completion date in respect of the particular amount.

1994, c. 22, s. 290; 1995, c. 49, s. 206; 1996, c. 39, s. 242; 2001, c. 53, s. 200.

935.8. (Repealed).

1994, c. 22, s. 290; 2009, c. 5, s. 384.

935.8.1. Where an amount, other than an amount paid in the first 60 days of a taxation year, is paid as a premium by an individual in the year and the Minister so directs, the following rules apply:

 (a) all or part of the amount may be designated in writing by the individual for the purposes of section 935.3 and, to that end, the amount is deemed to have been paid at the beginning of the year and not at the time it was actually paid; and

 (b) the designation of all or part of that amount is deemed to have been made in the prescribed form the individual is required to send with the fiscal return the individual is required to file under section 1000 for the preceding taxation year.

2003, c. 2, s. 255.

CHAPTER III 
Repealed, 1996, c. 39, s. 243.
1994, c. 22, s. 290; 1995, c. 49, s. 207; 1996, c. 39, s. 243.

935.9. (Repealed).

1994, c. 22, s. 290; 1995, c. 49, s. 208; 1996, c. 39, s. 243.

935.10. (Repealed).

1994, c. 22, s. 290; 1995, c. 49, s. 209; 1996, c. 39, s. 243.

935.10.1. (Repealed).

1995, c. 49, s. 210; 1996, c. 39, s. 243.

935.10.2. (Repealed).

1995, c. 49, s. 210; 1996, c. 39, s. 243.

935.11. (Repealed).

1994, c. 22, s. 290; 1995, c. 49, s. 211; 1996, c. 39, s. 243.

TITLE IV.2 
LIFELONG LEARNING INCENTIVE PLAN

CHAPTER I 
INTERPRETATION AND GENERAL
2001, c. 53, s. 201.

935.12. In this Title,

annuitant has the meaning assigned by paragraph b of section 905.1;

benefit has the meaning assigned by paragraph a of section 905.1;

eligible amount of an individual means a particular amount received at a particular time in a calendar year by the individual as a benefit out of or under a registered retirement savings plan if

 (a) the particular amount is received after 31 December 1998 pursuant to the individual's written request in a prescribed form;

 (b) in respect of the particular amount, the individual designates in the form prescribed a person, in this definition referred to as the designated person, who is the individual or the individual's spouse;

 (c) the aggregate of the eligible amount and all other eligible amounts received by the individual at or before the particular time and in the year does not exceed $10,000;

 (d) the aggregate of the particular amount and all other eligible amounts received by the individual at or before the particular time, other than amounts received in participation periods of the individual that ended before the year, does not exceed $20,000;

 (e) the individual did not receive an eligible amount at or before the particular time in respect of which someone other than the designated person was designated, other than an amount received in a participation period of the individual that ended before the year;

 (f) the designated person is enrolled at the particular time as a full-time student in a qualifying educational program or has received written notification before the particular time that the designated person is absolutely or contingently entitled to enroll before March of the following year as a full-time student in a qualifying educational program;

 (g) the individual is resident in Canada throughout the period that begins at the particular time and ends immediately before the earlier of the beginning of the following year and the time of the individual's death;

 (h) except where the individual dies after the particular time and before April of the following year, the designated person is enrolled as a full-time student in a qualifying educational program after the particular time and before March of the following year and

(i)  the designated person completes the qualifying educational program before April of the following year,

(ii)  the designated person does not withdraw from the qualifying educational program before April of the following year, or

(iii)  less than 75% of the tuition paid, after the beginning of the year and before April of the following year, in respect of the designated person and the qualifying educational program is refundable; and

 (i) if an eligible amount was received by the individual before the year, the particular time is neither

(i)  in the individual's repayment period for the individual's participation period that includes the particular time, nor

(ii)  after January, or a later month where the Minister so permits, of the fifth calendar year of the individual's participation period that includes the particular time;

excluded premium of an individual means a premium that

 (a) was designated by the individual for the purposes of paragraph j, j.1 or l of section 60 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) or for the purposes of section 935.3;

 (b) was a repayment to which paragraph b of the definition of excluded withdrawal in the first paragraph of section 935.1 applies;

 (c) was an amount transferred directly from a registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan; or

 (d) was deductible under section 923.5 in computing the individual's income for any taxation year;

excluded withdrawal of an individual means

 (a) an eligible amount received by the individual; or

 (b) a particular amount, other than an eligible amount, received while the individual was resident in Canada and in a calendar year if

(i)  the particular amount would be an eligible amount of the individual if the definition of eligible amount were read without reference to paragraphs g and h of that definition,

(ii)  a payment, other than an excluded premium, equal to the particular amount is made by the individual under a retirement savings plan that is, at the end of the taxation year of the payment, a registered retirement savings plan under which the individual is the annuitant,

(iii)  the payment is made before the particular time that is,

(1)  if the individual was not resident in Canada at the time the individual filed a fiscal return for the taxation year in which the particular amount was received, the earlier of the end of the following calendar year and the time at which the individual filed the fiscal return, and

(2)  in any other case, the end of the following calendar year, and

(iv)  the payment, and no other payment, is designated under this subparagraph as a repayment of the particular amount in a prescribed form filed with the Minister on or before the particular time or before such later time as is acceptable to the Minister;

participation period of an individual means each period that begins at the beginning of a calendar year in which the individual receives an eligible amount and at the beginning of which the individual's specified balance is nil and that ends immediately before the beginning of the first subsequent calendar year at the beginning of which the individual's specified balance is nil;

premium has the meaning assigned by paragraph e of section 905.1;

qualifying educational program means a qualifying educational program within the meaning assigned by subsection 1 of section 146.02 of the Income Tax Act;

repayment period of an individual for a participation period of the individual in respect of a person designated under paragraph b of the definition of eligible amount means the period within the participation period that begins at one of the times referred to in subparagraphs i to iv of paragraph a of the definition of repayment period in subsection 1 of section 146.02 of the Income Tax Act and that ends at the end of the participation period;

specified balance of an individual at any time means the amount by which the aggregate of all eligible amounts received by the individual at or before that time exceeds the aggregate of all amounts designated under section 935.14 by the individual for taxation years that ended before that time, and all amounts each of which is included under section 935.15 or 935.16 in computing the individual's income for a taxation year that ended before that time.

In this Title, a full-time student in a taxation year includes an individual to whom subsection 3 of section 118.6 of the Income Tax Act applies for the purpose of computing tax payable under Part I of that Act for the year or the following taxation year.

2001, c. 53, s. 201; 2013, c. 10, s. 78.

935.13. For the purposes of the definition of eligible amount in the first paragraph of section 935.12, a particular person is deemed to be the only person in respect of whom a particular amount was designated under paragraph b of that definition if

 (a) an individual received the particular amount;

 (b) the individual files a prescribed form with the Minister in which the particular person is specified in connection with the receipt of the particular amount;

 (c) the particular amount would be an eligible amount of the individual if that definition were read without reference to paragraphs b and e of that definition and paragraphs f and h of that definition were read as follows:

“(f) the individual or the individual’s spouse, as the case may be, is enrolled at the particular time as a full-time student in a qualifying educational program or has received written notification before the particular time that the individual or the individual’s spouse, as the case may be, is absolutely or contingently entitled to enroll before March of the following year as a full-time student in a qualifying educational program;”;

“(h) except where the individual dies after the particular time and before April of the following year, the individual or the individual’s spouse, as the case may be, is enrolled as a full-time student in a qualifying educational program after the particular time and before March of the following year and

i. the individual or the individual’s spouse, as the case may be, completes the qualifying educational program before April of the following year,

ii. the individual or the individual’s spouse, as the case may be, does not withdraw from the qualifying educational program before April of the following year, or

iii. less than 75% of the tuition paid, after the beginning of the year and before April of the following year, in respect of the individual or the individual’s spouse, as the case may be, and the qualifying educational program is refundable; and”;

 (d) the Minister so permits.

2001, c. 53, s. 201.

CHAPTER II 
REPAYMENT OF ELIGIBLE AMOUNTS AND AMOUNTS TO BE INCLUDED
2001, c. 53, s. 201.

935.14. An individual may designate a single amount for a taxation year in a prescribed form filed with the fiscal return the individual is required to file under section 1000 for the year, if the amount does not exceed the lesser of

 (a) the aggregate of all amounts, other than excluded premiums, repayments to which paragraph b of the definition of excluded withdrawal in the first paragraph of section 935.12 applies and amounts paid by the individual in the first 60 days of the year that can reasonably be considered to have been deducted in computing the individual’s income, or designated under this section, for the preceding taxation year, paid by the individual in the year or within 60 days after the end of the year under a retirement savings plan that is at the end of the year or the following taxation year a registered retirement savings plan under which the individual is the annuitant; and

 (b) the individual’s specified balance at the end of the year.

2001, c. 53, s. 201.

935.15. An individual shall in computing the individual’s income for a particular taxation year that begins after 31 December 2000 include the amount determined by the formula


[(A − B − C) / (10 − D)] − E.


In the formula provided for in the first paragraph,

 (a)  A is

(i)  nil, if

(1)  the individual died or ceased to be resident in Canada in the particular year, or

(2)  the beginning of the particular year is not included in a repayment period of the individual, and

(ii)  in any other case, the aggregate of all eligible amounts received by the individual in preceding taxation years, other than taxation years in participation periods of the individual that ended before the particular year;

 (b) B is

(i)  nil, if the particular year is the first taxation year in a repayment period of the individual, and

(ii)  in any other case, the aggregate of all amounts designated under section 935.14 by the individual for preceding taxation years, other than taxation years in participation periods of the individual that ended before the particular year;

 (c) C is the aggregate of all amounts each of which is included under this section or section 935.16 in computing the individual’s income for a preceding taxation year, other than a taxation year included in a participation period of the individual that ended before the particular year;

 (d) D is the lesser of nine and the number of taxation years of the individual that end in the period that begins at the beginning of the individual’s last repayment period that began at or before the beginning of the particular year and ends at the beginning of the particular year; and

 (e) E is

(i)  if the particular year is the first taxation year within a repayment period of the individual, the aggregate of the amount designated under section 935.14 by the individual for the particular year and all amounts so designated for preceding taxation years, other than taxation years in participation periods of the individual that ended before the particular year, and

(ii)  in any other case, the amount designated under section 935.14 by the individual for the particular year.

2001, c. 53, s. 201.

935.16. If at any time in a taxation year an individual ceases to be resident in Canada, the individual shall include in computing the income of the individual for the period in the year during which the individual was resident in Canada the amount by which the aggregate of all amounts each of which is an eligible amount received by the individual in the year or a preceding taxation year exceeds the amount determined under the second paragraph.

The amount to which the first paragraph refers is the aggregate of

 (a) all amounts designated under section 935.14 by the individual in respect of an amount paid not later than 60 days after that time and before the individual files a fiscal return for the year; and

 (b) all amounts included under section 935.15 or this section in computing the income of the individual for a preceding taxation year.

2001, c. 53, s. 201.

935.17. If an individual dies at any time in a taxation year, there shall be included in computing the income of the individual for the year the amount by which the individual’s specified balance immediately before that time exceeds the amount designated under section 935.14 by the individual for the year.

2001, c. 53, s. 201.

935.18. If a spouse of an individual was resident in Canada immediately before the individual’s death at a particular time in a taxation year and the spouse and the individual’s legal representatives jointly so elect in writing in the individual’s fiscal return filed under this Part for the year, the following rules apply:

 (a) section 935.17 does not apply to the individual;

 (b) the spouse is deemed to have received a particular eligible amount at the particular time equal to the amount that, but for this section, would be determined under section 935.17 in respect of the individual;

 (c) subject to paragraph d, for the purpose of applying this Title after the particular time, the spouse is deemed to be the person designated under paragraph b of the definition of eligible amount in the first paragraph of section 935.12 in respect of the particular amount; and

 (d) where the spouse received an eligible amount before the particular time in the spouse’s participation period that included the particular time and the particular individual designated under paragraph b of the definition of eligible amount in the first paragraph of section 935.12 in respect of that eligible amount was not the spouse, for the purpose of applying this Title after the particular time the particular individual is deemed to be the person designated under that paragraph in respect of the particular amount.

2001, c. 53, s. 201.

935.19. Where an amount, other than an amount paid in the first 60 days of a taxation year, is paid as a premium by an individual in the year and the Minister so directs, the following rules apply:

 (a) all or part of the amount may be designated in writing by the individual for the purposes of section 935.14 and, to that end, the amount is deemed to have been paid at the beginning of the year and not at the time it was actually paid; and

 (b) the designation of all or part of that amount is deemed to have been made in the prescribed form the individual is required to send with the fiscal return the individual is required to file under section 1000 for the preceding taxation year.

2003, c. 2, s. 256.

TITLE IV.3 
TAX-FREE SAVINGS ACCOUNTS
2009, c. 15, s. 170.

CHAPTER I 
DEFINITION
2009, c. 15, s. 170.

935.20. In this Title, “holder” has the meaning assigned by subsection 1 of section 146.2 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).

2009, c. 15, s. 170.

CHAPTER II 
TAX
2009, c. 15, s. 170.

935.21. No tax is payable under this Part by a trust that is governed by a tax-free savings account on its taxable income for a taxation year.

2009, c. 15, s. 170.

935.22. Despite section 935.21, a trust governed by a tax-free savings account that carries on a business in a taxation year shall pay tax under this Part on the amount that would be its taxable income for the year if it had no incomes or losses from sources other than that business.

2009, c. 15, s. 170.

935.23. Despite section 935.21, a trust governed by a tax-free savings account that holds, in a taxation year, a property that is a non-qualified investment (for the purposes of Part XI.01 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.))) for the trust, shall pay tax under this Part on the amount that would be its taxable income for the year if it had no incomes or losses from sources other than such investments and no capital gains or capital losses other than from the disposition of such investments.

2009, c. 15, s. 170; 2012, c. 8, s. 152.

935.24. For the purposes of sections 935.22 and 935.23, the following rules apply:

 (a) a trust's income includes a dividend described in sections 501 to 503;

 (b) the trust's taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and

 (c) a trust's income is computed without reference to paragraph a of section 657.

2009, c. 15, s. 170; 2011, c. 6, s. 182.

935.25. An amount that is credited or added to a deposit that is a tax-free savings account as interest or other income in respect of the account is deemed not to be received by the holder of the account solely because of that crediting or adding.

2009, c. 15, s. 170.

CHAPTER III 
SPECIAL PROVISIONS
2009, c. 15, s. 170.

935.26. If an arrangement that governs a trust ceases, at a particular time, to be a tax-free savings account, the following rules apply:

 (a) the trust is deemed to have disposed, immediately before the particular time, of each property held by the trust for proceeds of disposition equal to the property's fair market value immediately before the particular time and to have acquired, at the particular time, each such property at a cost equal to that fair market value;

 (b) the trust's last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and

 (c) a taxation year of the trust is deemed to begin at the particular time.

2009, c. 15, s. 170.

935.26.1. If an arrangement that governs a trust ceases to be a tax-free savings account because of the death of the holder of the tax-free savings account, the following rules apply:

 (a) the arrangement is deemed, for the purposes of the third paragraph of section 647, sections 935.21 to 935.24 and 935.26 and paragraph h.1 of section 998, to continue to be a tax-free savings account until, and to cease to be a tax-free savings account immediately after, the exemption-end time;

 (b) there must be included in computing a taxpayer's income for a taxation year the aggregate of all amounts each of which is an amount determined by the formula


A - B; and


 (c) there must be included in computing the trust's income for its first taxation year, if any, that begins after the exemption-end time the amount determined by the formula


C - D.


In the formulas in subparagraphs b and c of the first paragraph,

 (a) A is the amount of a payment made out of or under the trust, in satisfaction of all or part of the taxpayer's beneficial interest in the trust, in the taxation year, after the holder's death and at or before the exemption-end time;

 (b) B is an amount designated by the trust not exceeding the lesser of

(i)  the amount of the payment, and

(ii)  the amount by which the fair market value of all of the property held by the trust immediately before the holder's death exceeds the aggregate of all amounts each of which is an amount determined under this subparagraph b in respect of any other payment made out of or under the trust;

 (c) C is the fair market value of all of the property held by the trust at the exemption-end time; and

 (d) D is the amount by which the fair market value of all of the property held by the trust immediately before the holder's death exceeds the aggregate of all amounts each of which is an amount determined under subparagraph b in respect of a payment made out of or under the trust.

For the purposes of this section, the exemption-end time is the earlier of

 (a) the time at which the trust ceases to exist; and

 (b) the end of the first calendar year that begins after the holder dies.

2010, c. 5, s. 92.

935.27. If an annuity contract ceases, at a particular time, to be a tax-free savings account, the following rules apply:

 (a) the holder of the tax-free savings account is deemed to have disposed of the contract immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time;

 (b) the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a tax-free savings account; and

 (c) each person who has a right or interest in the separate annuity contract at the particular time is deemed to acquire the right or interest at the particular time at a cost equal to its fair market value at the particular time.

2009, c. 15, s. 170.

935.28. If a deposit ceases, at a particular time, to be a tax-free savings account, the following rules apply:

 (a) the holder of the tax-free savings account is deemed to have disposed of the deposit immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time; and

 (b) each person who has a right or interest in the deposit at the particular time is deemed to acquire the right or interest at the particular time at a cost equal to its fair market value at the particular time.

2009, c. 15, s. 170.

935.29. An arrangement that is a qualifying arrangement, as defined in subsection 1 of section 146.2 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), is deemed not to be a retirement savings plan, an education savings plan, a retirement income fund or a disability savings plan.

2009, c. 15, s. 170.

TITLE V 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

CHAPTER I 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

936. (Repealed).

1975, c. 21, s. 23; 1987, c. 67, s. 170; 2005, c. 23, s. 123.

937. (Repealed).

1975, c. 21, s. 23; 1982, c. 5, s. 159; 1997, c. 3, s. 71; 2005, c. 23, s. 123.

938. (Repealed).

1975, c. 21, s. 23; 1982, c. 5, s. 160; 1984, c. 15, s. 204; 2005, c. 23, s. 123.

939. (Repealed).

1975, c. 21, s. 23; 1978, c. 26, s. 172; 1982, c. 5, s. 161; 1997, c. 3, s. 71; 2005, c. 23, s. 123.

940. (Repealed).

1977, c. 26, s. 103; 1982, c. 5, s. 162; 2005, c. 23, s. 123.

941. (Repealed).

1977, c. 26, s. 103; 1980, c. 13, s. 89; 1997, c. 3, s. 71; 2005, c. 23, s. 123.

941.1. (Repealed).

1982, c. 5, s. 163; 1997, c. 14, s. 152; 2005, c. 23, s. 123.

942. (Repealed).

1977, c. 26, s. 103; 1978, c. 26, s. 173; 2005, c. 23, s. 123.

943. (Repealed).

1975, c. 21, s. 23; 1997, c. 3, s. 71; 1997, c. 85, s. 201; 2000, c. 5, s. 214; 2005, c. 23, s. 123.

943.1. (Repealed).

1982, c. 56, s. 16; 1997, c. 3, s. 71; 1997, c. 85, s. 202.

943.2. (Repealed).

1983, c. 44, s. 31; 1984, c. 35, s. 17; 1997, c. 3, s. 71; 1997, c. 85, s. 202.

CHAPTER II 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

944. (Repealed).

1975, c. 21, s. 23; 1977, c. 26, s. 104; 1978, c. 26, s. 174; 1982, c. 5, s. 164; 1982, c. 56, s. 17; 1984, c. 15, s. 205; 1987, c. 67, s. 171; 2005, c. 23, s. 123.

944.1. (Repealed).

1983, c. 44, s. 32; 2005, c. 23, s. 123.

944.2. (Repealed).

1990, c. 7, s. 81; 1991, c. 8, s. 55; 2005, c. 23, s. 123.

944.3. (Repealed).

1991, c. 8, s. 56; 2005, c. 23, s. 123.

944.4. (Repealed).

1992, c. 1, s. 84; 2005, c. 23, s. 123.

944.5. (Repealed).

1993, c. 19, s. 72; 1997, c. 14, s. 153; 2005, c. 23, s. 123.

944.6. (Repealed).

1997, c. 14, s. 154; 1998, c. 46, s. 65; 2005, c. 23, s. 123.

944.7. (Repealed).

1997, c. 14, s. 154; 2005, c. 23, s. 123.

944.8. (Repealed).

1997, c. 14, s. 154; 2005, c. 23, s. 123.

945. (Repealed).

1975, c. 21, s. 23; 1975, c. 83, s. 84; 1982, c. 5, s. 165; 1984, c. 15, s. 206; 1987, c. 67, s. 172; 1999, c. 83, s. 273; 2005, c. 23, s. 123.

946. (Repealed).

1975, c. 21, s. 23; 1982, c. 5, s. 165; 1982, c. 56, s. 18; 1983, c. 44, s. 33; 1990, c. 7, s. 82; 1991, c. 8, s. 57; 1992, c. 1, s. 85; 1993, c. 19, s. 73; 1997, c. 14, s. 155; 2005, c. 23, s. 123.

946.1. (Repealed).

1997, c. 14, s. 156; 2005, c. 23, s. 123.

CHAPTER III 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

947. (Repealed).

1975, c. 21, s. 23; 2005, c. 23, s. 123.

948. (Repealed).

1975, c. 21, s. 23; 2005, c. 23, s. 123.

949. (Repealed).

1975, c. 21, s. 23; 2005, c. 23, s. 123.

950. (Repealed).

1975, c. 21, s. 23; 2005, c. 23, s. 123.

951. (Repealed).

1975, c. 21, s. 23; 1979, c. 18, s. 67; 1984, c. 15, s. 207; 1990, c. 59, s. 327; 2005, c. 23, s. 123.

CHAPTER IV 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

952. (Repealed).

1975, c. 21, s. 23; 1978, c. 26, s. 175; 1982, c. 56, s. 19; 2005, c. 23, s. 123.

952.1. (Repealed).

1978, c. 26, s. 176; 1980, c. 13, s. 90; 2005, c. 23, s. 123.

953. (Repealed).

1975, c. 21, s. 23; 1978, c. 26, s. 177; 1982, c. 56, s. 20; 1997, c. 3, s. 71; 2005, c. 23, s. 123.

954. (Repealed).

1975, c. 21, s. 23; 1978, c. 26, s. 178; 1982, c. 56, s. 21; 2005, c. 23, s. 123.

954.1. (Repealed).

1982, c. 56, s. 21; 2005, c. 23, s. 123.

CHAPTER V 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

955. (Repealed).

1975, c. 21, s. 23; 1977, c. 26, s. 105; 1978, c. 26, s. 179; 1982, c. 5, s. 166; 1982, c. 56, s. 22; 1983, c. 44, s. 34; 1984, c. 35, s. 18; 1987, c. 67, s. 173; 1990, c. 7, s. 83; 1991, c. 8, s. 58; 1992, c. 1, s. 86; 1993, c. 19, s. 74; 1997, c. 14, s. 157; 1998, c. 46, s. 65; 2005, c. 23, s. 123.

955.1. (Repealed).

1983, c. 44, s. 35; 2005, c. 23, s. 123.

956. (Repealed).

1975, c. 21, s. 23; 1982, c. 56, s. 23; 2005, c. 23, s. 123.

957. (Repealed).

1975, c. 21, s. 23; 1982, c. 56, s. 24; 2005, c. 23, s. 123.

CHAPTER VI 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

958. (Repealed).

1975, c. 21, s. 23; 1991, c. 25, s. 139; 1995, c. 49, s. 212; 1996, c. 39, s. 244; 2005, c. 23, s. 123.

CHAPTER VII 
Repealed, 2005, c. 23, s. 123.
2005, c. 23, s. 123.

959. (Repealed).

1975, c. 21, s. 23; 1982, c. 5, s. 167; 1997, c. 14, s. 158; 2005, c. 23, s. 123.

960. (Repealed).

1975, c. 21, s. 23; 1982, c. 5, s. 167; 1990, c. 7, s. 84; 2005, c. 23, s. 123.

961. (Repealed).

1975, c. 21, s. 23; 2005, c. 23, s. 123.

961.1. (Repealed).

1978, c. 26, s. 180; 1982, c. 5, s. 168; 1995, c. 63, s. 97; 1997, c. 14, s. 159; 2005, c. 23, s. 123.

961.1.1. (Repealed).

1982, c. 56, s. 25; 2005, c. 23, s. 123.

961.1.2. (Repealed).

1983, c. 44, s. 36; 1984, c. 35, s. 19; 1985, c. 25, s. 137; 2005, c. 23, s. 123.

961.1.3. (Repealed).

1983, c. 44, s. 36; 1985, c. 25, s. 138; 2005, c. 23, s. 123.

961.1.4. (Repealed).

1986, c. 15, s. 134; 2005, c. 23, s. 123.

961.1.4.1. (Repealed).

1991, c. 8, s. 59; 2005, c. 23, s. 123.

TITLE V.1 
REGISTERED RETIREMENT INCOME FUND
1979, c. 18, s. 68.

CHAPTER I 
INTERPRETATION
1979, c. 18, s. 68; 1988, c. 18, s. 91; 2000, c. 39, s. 104.

961.1.5. In this Title,

 (a) property held in connection with a retirement income fund means property held by the carrier of the fund, whether held by the carrier as trustee or beneficial owner thereof, the value of which, or the income or loss from which is relevant in determining the amount for a year payable to the annuitant under the fund;

 (b) carrier of a retirement income fund has the meaning assigned by subsection 1 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

 (c) minimum amount under a retirement income fund for a year means the amount determined under section 961.1.5.0.1 in respect of the fund for the year;

 (c.1) designated benefit of an individual in respect of a registered retirement income fund means the aggregate of

(i)  such amounts paid out of or under the fund after the death of the last annuitant thereunder to the legal representative of that annuitant

(1)  as would, had they been paid under the fund to the individual, have been refunds of premiums within the meaning assigned by the first paragraph of section 908, if the fund were a registered retirement savings plan under which the date provided for the first payment of benefits was subsequent to the death, and

(2)  as are designated jointly by the legal representative and the individual on the prescribed form filed with the Minister; and

(ii)  amounts paid out of or under the fund after the death of the last annuitant thereunder to the individual that would be refunds of premiums within the meaning assigned by the first paragraph of section 908 had the fund been a registered retirement savings plan under which the date provided for the first payment of benefits was subsequent to the death;

 (d) annuitant under a retirement income fund at any time means any of the following persons:

(i)  the first individual to whom the carrier has undertaken to make the payments described in the definition of retirement income fund in subsection 1 of section 146.3 of the Income Tax Act out of or under the fund, where the first individual is alive at that time;

(ii)  after the death of the first individual, a spouse, in this subparagraph referred to as the surviving spouse, of the first individual to whom the carrier has undertaken to make payments described in the definition of retirement income fund in subsection 1 of section 146.3 of the Income Tax Act out of or under the fund after the death of the first individual, where the surviving spouse is alive at that time and the undertaking was made pursuant to an election described in the said definition of the first individual or with the consent of the legal representative of the first individual; and

(iii)  after the death of the surviving spouse, another spouse of the surviving spouse to whom the carrier has undertaken, with the consent of the legal representative of the surviving spouse, to make payments described in the definition of retirement income fund in subsection 1 of section 146.3 of the Income Tax Act out of or under the fund after the death of the surviving spouse, where that other spouse is alive at that time.

1988, c. 18, s. 92; 1991, c. 25, s. 140; 1994, c. 22, s. 291; 1995, c. 49, s. 213; 1996, c. 39, s. 245; 2000, c. 5, s. 215.

961.1.5.0.1. The amount to which paragraph c of section 961.1.5 refers in respect of a retirement income fund is equal to zero for the year in which the arrangement relating to the fund is made and, for each subsequent year, to the amount determined by the formula


(A × B) + C.


In the formula provided for in the first paragraph,

 (a) A is the fair market value of all properties held in connection with the fund at the beginning of the year, other than annuity contracts held by a trust governed by the fund that, at the beginning of the year, are not referred to in paragraph b.1 of the definition of qualified investment in subsection 1 of section 146.3 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

 (b) B is

(i)  where the first annuitant under the fund elected in respect of the fund under subparagraph ii of paragraph c of section 961.1.5, as it read before 1 January 1992, or under the first paragraph of section 961.4, as it read before 1 January 1986, to use the age of another individual, the prescribed factor for the year in respect of the other individual,

(ii)  where subparagraph i does not apply and the first annuitant under the fund so elects before any payment has been made under the fund by the carrier, the prescribed factor for the year in respect of an individual who is the spouse of the first annuitant at the time of the election, and

(iii)  in any other case, the prescribed factor for the year in respect of the first annuitant under the fund; and

 (c) C is, where the fund governs a trust, the aggregate of all amounts each of which is

(i)  a periodic payment under an annuity contract held by the trust at the beginning of the year, other than an annuity contract referred to at the beginning of the year in paragraph b.1 of the definition of qualified investment in subsection 1 of section 146.3 of the Income Tax Act, that is paid to the trust in the year, or

(ii)  if the periodic payment under an annuity contract described in subparagraph i is not made to the trust because the trust disposed of the right to that payment in the year, a reasonable estimate of that payment on the assumption that the annuity contract has been held by the trust throughout the year and no rights under the contract were disposed of in the year.

2000, c. 5, s. 216; 2009, c. 5, s. 385.

961.1.5.0.2. The minimum amount under a retirement income fund for the taxation year 2008 is 75% of the amount that would, but for this section, be the minimum amount under the fund for that year.

The first paragraph does not apply in respect of a retirement income fund

 (a) for the purposes of section 961.17.0.1, paragraph k of the definition of “remuneration” in section 1015R1 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) and subparagraph a of the second paragraph of section 1015R21 of that regulation; or

 (b) if the individual who was the annuitant under the fund on 1 January 2008 reached 70 years of age in the year 2007.

2010, c. 5, s. 93.

961.1.5.1. (Repealed).

1991, c. 25, s. 141; 1994, c. 22, s. 292.

961.2. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 93; 1991, c. 25, s. 142.

961.3. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 94; 1991, c. 25, s. 142.

961.4. (Repealed).

1979, c. 18, s. 68; 1984, c. 15, s. 208; 1988, c. 18, s. 95.

961.5. (Repealed).

1979, c. 18, s. 68; 1984, c. 15, s. 209; 1988, c. 18, s. 96; 1991, c. 25, s. 142.

961.5.1. (Repealed).

1982, c. 5, s. 169; 1988, c. 18, s. 96; 1991, c. 25, s. 142.

961.6. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 96; 1991, c. 25, s. 142.

961.7. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 97.

961.8. A designated benefit of an individual in respect of a registered retirement income fund that is received by the legal representative of the last annuitant under the fund is deemed to be received by the individual out of or under the fund at the time it is received by the legal representative and, except for the purposes of paragraph c.1 of section 961.1.5, not to be received out of or under the fund by any other person.

1979, c. 18, s. 68; 1980, c. 13, s. 91; 1988, c. 18, s. 98; 1995, c. 49, s. 214.

961.8.1. Where, at any particular time, an amount is credited or added to a deposit with a depositary referred to in paragraph d of the definition of carrier in subsection 1 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) as interest or other income in respect of the deposit and the deposit is, at that time, a registered retirement income fund the annuitant under which was alive during the calendar year in which the amount is credited or added or during the preceding calendar year, the amount is deemed not to be received by the annuitant or any other person solely because of the crediting or adding.

1982, c. 5, s. 170; 1988, c. 18, s. 98; 1991, c. 25, s. 143; 1995, c. 49, s. 214.

CHAPTER II 
CHANGE IN FUND AFTER REGISTRATION
1979, c. 18, s. 68; 1988, c. 18, s. 99.

961.9. Where a registered retirement income 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 section referred to as the amended fund, is deemed, under subsection 11 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), not to be a registered retirement income fund for the purposes of the said Act, the following rules apply:

 (a) the amended fund is deemed, for the purposes of this Part, not to be a registered retirement income fund;

 (b) the individual who was the annuitant under the fund before it became an amended fund shall, in computing his 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.

1979, c. 18, s. 68; 1984, c. 15, s. 210; 1988, c. 18, s. 100; 1991, c. 25, s. 144.

961.9.1. (Repealed).

1988, c. 18, s. 101; 1991, c. 25, s. 145.

961.9.2. (Repealed).

1988, c. 18, s. 101; 1991, c. 25, s. 145.

961.10. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 102.

961.11. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 102.

CHAPTER III 
TAXATION
1979, c. 18, s. 68.

961.12. No tax is payable by a trust under this Part for a taxation year if, throughout the period in the year during which the trust is in existence, the trust is governed by a registered retirement income fund.

1979, c. 18, s. 68.

961.13. Notwithstanding section 961.12, a trust governed by a registered retirement income fund shall pay tax under this Part on its taxable income for a taxation year

 (a) if it borrows money in the year or has borrowed money that it has not repaid before the commencement of the year, or

 (b) if it receives in the year a gift of property, other than property transferred in accordance with subparagraph i or ii of paragraph f of subsection 2 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), or received such a gift of property in a preceding year and has not divested itself of that property or any property substituted therefor before the commencement of the year.

1979, c. 18, s. 68; 1991, c. 25, s. 146; 1995, c. 49, s. 215.

961.14. Where section 961.13 does not apply, a trust governed by a registered retirement income fund that carries on a business in a taxation year shall, notwithstanding section 961.12, pay tax under this Part on the amount by which the amount that its taxable income for the year would be if it had no incomes or losses from sources other than that business, exceeds such portion of the taxable income as can reasonably be considered to be income from, or from the disposition of, qualified investments within the meaning of subsection 1 of section 146.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement).

1979, c. 18, s. 68; 1995, c. 49, s. 216.

961.15. Despite section 961.12, a trust governed by a registered retirement income fund that holds, at any time in a taxation year, a property that is not a qualified investment for the purposes of subsection 9 of section 146.3 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) shall pay tax under this Part on the amount that its taxable income for the year would be if the trust had no incomes or losses from sources other than properties that are not such qualified investments and no capital gains or capital losses other than from the disposition of such properties.

1979, c. 18, s. 68; 1991, c. 25, s. 147; 2009, c. 5, s. 386; 2012, c. 8, s. 153.

961.16. For the purposes of section 961.15, income of a trust includes dividends described in sections 501 to 503, and the first paragraph of section 231 shall be construed as if the taxable capital gain or the allowable capital loss were the total capital gain or the total capital loss, as the case may be, from the disposition of property.

1979, c. 18, s. 68; 1984, c. 15, s. 211; 1990, c. 59, s. 328.

961.16.1. Notwithstanding sections 961.12 to 961.16, a trust governed by a registered retirement income fund shall pay tax under this Part on its taxable income for each taxation year after the year following the year in which the last annuitant under the fund died.

1980, c. 13, s. 92; 1988, c. 18, s. 103; 1995, c. 49, s. 217.

CHAPTER IV 
AMOUNTS TO BE INCLUDED
1979, c. 18, s. 68.

961.17. An individual shall include in computing his income for a taxation year an amount received by him in the year out of or under a registered retirement income fund, other than the portion of that amount that can reasonably be regarded as

 (a) part of the amount included in computing the income of another individual under section 961.17.1;

 (b) an amount received in respect of the income of the trust under the fund for a taxation year referred to in section 961.16.1;

 (c) an amount that relates to interest, or to another amount included in computing income otherwise than because of any of the provisions of this Title, and that would, if the fund were a registered retirement savings plan, be a tax-paid amount described in subparagraph ii of paragraph c.1 of section 905.1; or

 (d) an amount in respect of which the taxpayer pays a tax under Part XI.01 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), unless the tax is waived, cancelled or refunded.

An amount transferred on behalf of an individual from a registered retirement income fund of an annuitant is not to be included in computing the income of a taxpayer, solely because of that transfer, where the amount is

 (a) an amount transferred as described in paragraph e of subsection 2 of section 146.3 of the Income Tax Act;

 (b) an amount transferred on behalf of an individual who is a spouse or former spouse of the annuitant and who is entitled to the amount under an order or judgment of a competent court, or under a written separation agreement, relating to a partition of property between the annuitant and the annuitant’s spouse or former spouse in settlement of rights arising out of, or on the breakdown of, their marriage, directly to

(i)  a registered retirement income fund under which the individual is the annuitant, or

(ii)  a registered retirement savings plan under which the individual is the annuitant within the meaning of paragraph b of section 905.1;

 (b.1) an amount transferred at the direction of the annuitant directly to an account of the annuitant under a pooled registered pension plan; or

 (c) an amount transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member, within the meaning of section 965.0.1, or to a prescribed registered pension plan and allocated to the annuitant under a money purchase provision of the plan, within the meaning of section 965.0.1.

1979, c. 18, s. 68; 1980, c. 13, s. 93; 1988, c. 18, s. 104; 1991, c. 25, s. 148; 1994, c. 22, s. 293; 1995, c. 49, s. 236; 1997, c. 14, s. 290; 2000, c. 5, s. 217; 2005, c. 1, s. 200; 2012, c. 8, s. 154; 2015, c. 21, s. 348.

961.17.0.1. Where, at any time in a taxation year, a particular amount in respect of a registered retirement income fund that is a spousal plan, within the meaning of paragraph f of section 905.1, in relation to an individual is required to be included in computing the income of the individual's spouse and the individual is not an individual who is living apart from his spouse at that time because of the breakdown of their marriage, the individual shall include, at that time, in computing his income for the year, the least of the following amounts:

 (a) the aggregate of all amounts each of which is a premium, within the meaning of paragraph e of section 905.1, paid by him in the year or in one of the two immediately preceding taxation years to a registered retirement savings plan under which his spouse was the annuitant, within the meaning of paragraph b of section 905.1, at the time the premium was paid,

 (b) the particular amount, and

 (c) the amount by which the aggregate of all amounts each of which is an amount in respect of the fund that is required, in the year and at or before that time, to be included in computing the income of the individual's spouse exceeds the minimum amount under the fund for the year.

1988, c. 18, s. 105; 1991, c. 25, s. 149; 1995, c. 1, s. 96.

961.17.0.2. (Repealed).

1988, c. 18, s. 105; 1991, c. 25, s. 150.

961.17.0.3. Where an individual has paid more than one premium described in section 961.17.0.1, such a premium or part thereof paid by him at any time is deemed to have been included in computing his income by virtue of the said section before premiums or parts thereof paid by him after that time.

1988, c. 18, s. 105.

961.17.0.4. Section 961.17.0.1 does not apply

 (a) in respect of an individual at any time during the year in which the individual dies;

 (b) in respect of an individual where either the individual or the annuitant is not a resident in Canada at the particular time referred to in the said section;

 (c) to any payment that is received in full or partial commutation of a registered retirement savings plan or a registered retirement income fund and in respect of which a deduction was made under paragraph f of section 339 if, where the deduction was in respect of the acquisition of an annuity, the terms thereof provide that it cannot be commuted, and it is not commuted, in whole or in part within three years after the acquisition thereof;

 (d) in respect of an amount that is deemed, under the first paragraph of section 961.17.1, to have been received by an annuitant under a registered retirement income fund immediately before his death.

1988, c. 18, s. 105; 1991, c. 25, s. 151.

961.17.0.5. Where, in respect of an amount required, at any time in a taxation year, to be included in computing the income of the individual's spouse, all or part of a premium has, by virtue of section 961.17.0.1, been included in computing the individual's income for the year, the following rules apply:

 (a) the premium or part thereof, as the case may be, is, for the purposes of sections 931.1 and 961.17.0.1, after that time, deemed not to have been a premium paid to a registered retirement savings plan under which the individual's spouse was the annuitant, within the meaning of paragraph b of section 905.1; and

 (b) an amount equal to the premium or part thereof, as the case may be, may be deducted in computing the income of the spouse for the year.

1988, c. 18, s. 105; 1991, c. 25, s. 152.

961.17.1. Where the last annuitant under a registered retirement income fund dies, that annuitant is deemed to have received, immediately before death, an amount out of or under a registered retirement income fund equal to the fair market value of the property of the fund at the time of the death.

However, the annuitant referred to in the first paragraph may deduct from the amount he is deemed to have received under that paragraph an amount not exceeding the amount determined by the formula


A × {1 − [(B + C − D) / (B + C)]}.


For the purposes of the formula in the second paragraph,

 (a) A is the aggregate of

(i)  all designated benefits of individuals in respect of the fund,

(ii)  all amounts that would, if the fund were a registered retirement savings plan, be tax-paid amounts, within the meaning assigned by paragraph c.1 of section 905.1, in respect of the fund received by individuals who received, otherwise than because of section 961.8, designated benefits in respect of the fund, and

(iii)  all amounts each of which is an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount, within the meaning of paragraph c.1 of section 905.1, in respect of the fund received by the legal representative of the last annuitant under the fund, to the extent that the legal representative would have been entitled to designate that tax-paid amount under subparagraph i of paragraph c.1 of section 961.1.5 if tax-paid amounts were not excluded in determining refunds of premiums as defined in the first paragraph of section 908;

 (b) B is the fair market value of the property of the fund at the particular time that is the later of the end of the first calendar year beginning after the death of the annuitant and the time immediately after the last time that any designated benefit in respect of the fund is received by an individual;

 (c) C is the aggregate of all amounts paid out of or under the fund after the death of the last annuitant and before the particular time; and

 (d) D is the lesser of the fair market value of the property of the fund at the time of the death of the last annuitant thereunder and the aggregate of all amounts determined in respect of the fund under paragraphs b and c.

1980, c. 13, s. 93; 1982, c. 5, s. 171; 1988, c. 18, s. 106; 1995, c. 49, s. 218; 2000, c. 5, s. 218.

961.18. Where, at any time in a taxation year, a trust governed by a registered retirement income fund acquires property for a consideration greater than its fair market value at that time or disposes of property for no consideration or for a consideration less than its fair market value at that time, the annuitant under the fund at that time shall include, in computing his income for the year, twice the difference between such value and such consideration.

1979, c. 18, s. 68; 1988, c. 18, s. 106.

961.19. If, at any time in a taxation year, a trust governed by a registered retirement income fund uses or permits to be used any property of the trust as security for a loan, the annuitant under the fund at that time shall include, in computing the annuitant's income for the year, the fair market value of the property at the time it commenced to be so used.

1979, c. 18, s. 68; 1980, c. 13, s. 94; 1988, c. 18, s. 106; 1991, c. 25, s. 153; 2012, c. 8, s. 155.

CHAPTER V 
DEDUCTIONS
1979, c. 18, s. 68.

961.20. (Repealed).

1979, c. 18, s. 68; 1988, c. 18, s. 106; 1991, c. 25, s. 154; 2012, c. 8, s. 156.

961.21.  (1) 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 section 961.19, in computing the income of the individual who is the annuitant under the fund, the individual who is at that time the annuitant under the fund may deduct, in computing his income for the year, the amount by which the amount so included in computing the income of an individual in consequence of the trust's using or permitting to be used the property as security for the loan exceeds the net loss sustained by the trust in consequence of its using or permitting to be used the property as security for the loan.

 (2) However, the loss contemplated in subsection 1 does not include payments made by the trust as interest nor a change in the fair market value of the property.

1979, c. 18, s. 68; 1988, c. 18, s. 107; 1991, c. 25, s. 155.

961.21.0.1. If the last annuitant under a registered retirement income fund dies, there may be deducted in computing the annuitant's income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable under the fund have been paid, by the formula


A - B.


In the formula in the first paragraph,

 (a) A is the aggregate of all amounts each of which is

(i)  the amount deemed by the first paragraph of section 961.17.1 to have been received by the annuitant out of or under the fund,

(ii)  an amount (other than an amount described in subparagraph iii) received, after the death of the annuitant, by an individual out of or under the fund and included under the first paragraph of section 961.17 in computing the individual's income, or

(iii)  an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount, within the meaning of section 905.1, in respect of the fund; and

 (b) B is the aggregate of all amounts paid out of or under the fund after the death of the annuitant.

2010, c. 5, s. 94.

961.21.0.2. Unless the Minister has waived in writing the application of this section with respect to all or any portion of the amount determined in section 961.21.0.1, that section does not apply in respect of an annuitant under a registered retirement income fund if

 (a) after the death of the annuitant, a trust governed by the fund held an investment that was not a qualified investment for the purposes of section 146.3 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)); or

 (b) the last payment out of or under the fund was made after the end of the year following the year in which the annuitant died.

2010, c. 5, s. 94.

961.21.1. An amount transferred on behalf of an individual from a registered retirement income fund of an annuitant is not to be deducted in computing the income of a taxpayer, where the amount so transferred is transferred in a situation described in any of subparagraphs a to c of the second paragraph of section 961.17.

2005, c. 1, s. 201.

CHAPTER VI 
Repealed, 1991, c. 25, s. 156.
1979, c. 18, s. 68; 1991, c. 25, s. 156.

961.22. (Repealed).

1979, c. 18, s. 68; 1982, c. 5, s. 172; 1991, c. 25, s. 156.

TITLE V.2 
ELECTION IN RESPECT OF A UNIT IN A QUALIFIED TRUST
1987, c. 67, s. 174; 1995, c. 49, s. 219; 1997, c. 3, s. 71; 2006, c. 13, s. 66.

961.23. In this Title, “qualified trust” has the meaning assigned by subsection 5 of section 259 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement).

1987, c. 67, s. 174; 1995, c. 49, s. 219; 1997, c. 3, s. 42; 2006, c. 13, s. 67.

961.24. For the purposes of Titles III, III.1, IV, IV.3 and V.1, where, at a particular time, a taxpayer that is a trust governed by a registered education savings plan, a registered disability savings plan, a tax-free savings account, a registered retirement savings plan or a registered retirement income fund acquires, holds or disposes of a unit in a qualified trust, the qualified trust may, to the extent that it has made a valid election, in respect of a period, under subsection 1 of section 259 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), elect in the prescribed manner, in respect of that period, to have the following rules apply:

 (a) the taxpayer is deemed not to acquire, hold or dispose of at that time, as the case may be, the unit;

 (b) where the taxpayer holds the unit at that time, the taxpayer is deemed to hold at that time that proportion, referred to in this section as the “specified portion”, of each property, in this section referred to as a “relevant property”, held by the qualified trust at that time that one or, where the unit is a fraction of a whole unit, that fraction, is of the number of units of the qualified trust outstanding at that time;

 (c) (paragraph repealed);

 (d) where that time is the later of the time the qualified trust acquires the relevant property and the time the taxpayer acquires the unit, the taxpayer is deemed to acquire the specified portion of a relevant property at that time;

 (e) where that time is the time the specified portion of a relevant property is deemed under paragraph d to have been acquired, the fair market value of the specified portion of the relevant property at that time is deemed to be the specified portion of the fair market value of the relevant property at the time of its acquisition by the qualified trust;

 (f) where that time is the time immediately before the time the qualified trust disposes of a particular relevant property, the taxpayer is deemed to dispose of, immediately after that time, the specified portion of the particular relevant property for proceeds equal to the specified portion of the proceeds of disposition to the qualified trust of the particular relevant property;

 (g) where that time is the time immediately before the time the taxpayer disposes of the unit, the taxpayer is deemed to dispose of, immediately after that time, the specified portion of each relevant property for proceeds equal to the specified portion of the fair market value of that relevant property at that time; and

 (h) where the taxpayer is deemed because of this section to have acquired a portion of a relevant property as a consequence of the acquisition of the unit by the taxpayer and the acquisition of the relevant property by the qualified trust, and subsequently to have disposed of the specified portion of the relevant property, the specified portion of the relevant property is, for the purpose of determining the consequences under this Act of the disposition and without affecting the proceeds of disposition of the specified portion of the relevant property, deemed to be the portion of the relevant property the taxpayer is deemed to have acquired.

1987, c. 67, s. 174; 1995, c. 49, s. 219; 2006, c. 13, s. 68; 2009, c. 15, s. 171; 2012, c. 8, s. 157.

961.24.1. (Repealed).

1995, c. 49, s. 219; 2005, c. 23, s. 124.

961.24.2. (Repealed).

1995, c. 49, s. 219; 1997, c. 3, s. 71; 2005, c. 23, s. 125; 2006, c. 13, s. 69.

961.24.3. (Repealed).

1995, c. 49, s. 219; 1997, c. 3, s. 71; 2005, c. 23, s. 126.

961.24.4. If a qualified trust makes an election under section 961.24,

 (a) it shall provide notification of the election

(i)  not later than 30 days after making the election, to each person who held a unit in the qualified trust before the election was made and during the period for which the election is applicable, and

(ii)  at the time of acquisition, to each person who acquires a unit in the qualified trust after the election has been made and during the period for which the election is applicable; and

 (b) where a person who holds a unit in the qualified trust during the period for which the election is applicable makes a written request to the qualified trust for information that is necessary for the purpose of determining the consequences under this Part of the election for that person, the qualified trust shall provide the person with that information not later than 30 days after receiving the request.

1995, c. 49, s. 219; 1997, c. 3, s. 71; 2005, c. 23, s. 127; 2006, c. 13, s. 70.

TITLE VI 
REGISTERED SUPPLEMENTARY UNEMPLOYMENT BENEFIT PLANS
1972, c. 23.

962.  (1) For the purposes of this Part, a supplementary unemployment benefit plan is an arrangement under which an employer pays to a trust sums of money to be used exclusively to pay a periodic amount to an employee or former employee of the employer who is laid off for a temporary or indefinite period.

 (2) The plan contemplated in subsection 1 does not include however an arrangement in the nature of a pension plan or a profit sharing plan.

 (3) A supplementary unemployment benefit plan is registered when approved by the Minister for registration for the purposes of this Part and the regulations in respect of its constitution and operations for the taxation year under consideration.

1972, c. 23, s. 694.

963. No tax is payable by a trust under this Part for the period during which it is governed by a registered supplementary unemployment benefit plan.

1972, c. 23, s. 695.

964. An employer may deduct from his income for a taxation year any amount which he pays in such year or within 30 days thereafter to a trust governed by a plan contemplated in section 962, to the extent that such amount was not deductible in computing his income for a previous taxation year.

The employer must include any amount which he receives following an amendment to or modification of the plan or following the winding-up of the plan.

1972, c. 23, s. 696.

965. A beneficiary of a plan contemplated in section 962 must include in computing his income for a taxation year any amount which he receives from the trust under such plan in that year.

1972, c. 23, s. 697.

TITLE VI.0.1 
REGISTERED PENSION PLANS
1991, c. 25, s. 157.

CHAPTER I 
DEFINITIONS
1991, c. 25, s. 157.

965.0.1. For the purposes of this Title,

defined benefit provision of a pension plan has the meaning assigned by subsection 1 of section 147.1 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

licensed annuities provider means a person who is licensed or otherwise authorized under a law of Canada or a province to carry on an annuities business in Canada;

member of a pension plan means an individual who has a right, either immediate or in the future and either absolute or contingent, to receive benefits under the plan, other than an individual who has such a right only by reason of the participation of another individual in the plan;

money purchase provision of a pension plan has the meaning assigned by subsection 1 of section 147.1 of the Income Tax Act;

single amount means an amount that is not part of a series of periodic payments.

1991, c. 25, s. 157; 1994, c. 22, s. 294; 2000, c. 5, s. 219.

965.0.1.1. Any reference in this Part and the regulations to a pension plan as registered means the terms of the plan on the basis of which the Minister of Revenue of Canada has registered the plan for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) and as amended by each amendment referred to in paragraph a or b of subsection 15 of section 147.1 of that Act, and includes all terms that are not contained in the documents constituting the plan but that are terms of the plan by reason of the Pension Benefits Standards Act, 1985 (Revised Statutes of Canada, 1985, chapter 32, 2nd Supplement) or a similar law of a province.

2000, c. 5, s. 220.

CHAPTER II 
DEDUCTIONS
1991, c. 25, s. 157.

965.0.2. There may be deducted in computing an employer's income for a taxation year ending after 31 December 1990, the amount that, by virtue of paragraph q of subsection 1 of section 20 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), is allowed as a deduction for the year in computing the employer's income for the purposes of that Act in respect of a contribution made to a registered pension plan.

1991, c. 25, s. 157; 2015, c. 21, s. 349.

965.0.3. An individual may deduct, in computing his income for a taxation year ending after 31 December 1990, an amount equal to the aggregate of the following amounts:

 (a) the amounts that, by virtue of paragraph m of subsection 1 of section 8 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), are allowed as a deduction for the year in respect of the individual in computing his income for the purposes of the said Act, to the extent that the said paragraph refers to paragraph a of subsection 4 of section 147.2 of the said Act,

 (b) the least of the following amounts:

(i)  the amount described in the second paragraph,

(ii)  $5,500, and

(iii)  the amount determined by the formula


($5,500 × Y) − Z;


 (c) the lesser of the following amounts:

(i)  the amount by which

(1)  the aggregate of all amounts each of which is a contribution, other than an additional voluntary contribution, a contribution prescribed by regulation for the purposes of clause A of subparagraph i of paragraph c of subsection 4 of section 147.2 of the Income Tax Act or a contribution included in the aggregate determined in respect of the individual for the year under subparagraph a of the second paragraph, made by the individual in the year or any preceding taxation year and after 31 December 1962, to a registered pension plan in respect of a particular year before the year 1990, if all or any part of the particular year is included in the individual's eligible service under the plan, exceeds

(2)  the aggregate of all amounts each of which is an amount deducted, in computing the individual's income for any preceding taxation year, in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph 1, and

(ii)  the amount by which $5,500 exceeds the aggregate of the amounts deducted by reason of paragraphs a and b in computing the individual's income for the year.

The amount referred to in subparagraph i of subparagraph b of the first paragraph is equal to the amount by which

 (a) the aggregate of all amounts each of which is a contribution, other than an additional voluntary contribution or a contribution prescribed by regulation for the purposes of clause A of subparagraph i of paragraph b of subsection 4 of section 147.2 of the Income Tax Act, made by the individual in the year or any preceding taxation year and after 31 December 1945, to a registered pension plan in respect of a particular year before the year 1990, if all or any part of the particular year is included in the individual's eligible service under the plan and if

(i)  in the case of a contribution that the individual made before 28 March 1988 or was obliged to make under the terms of an agreement in writing entered into before that date, the individual was not a contributor to the plan in the particular year, or

(ii)  in any other case, the individual was not a contributor to any registered pension plan in the particular year, exceeds

 (b) the aggregate of all amounts each of which is an amount deducted, in computing the individual's income for any preceding taxation year, in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph a.

For the purposes of the formula set forth in subparagraph iii of subparagraph b of the first paragraph,

 (a) Y is the number of calendar years before the year 1990 each of which is

(i)  a year all or any part of which is included in the individual's eligible service under a registered pension plan to which the individual has made a contribution that is included in the aggregate determined under subparagraph a of the second paragraph, if the individual was not a contributor to any registered pension plan in that year, or

(ii)  a year all or any part of which is included in the individual's eligible service under a registered pension plan to which the individual has made a contribution before 28 March 1988, or was obliged to make a contribution under the terms of an agreement in writing entered into before that date, that is included in the aggregate determined under subparagraph a of the second paragraph, if the individual was not a contributor to the plan in that year, and

 (b) Z is the aggregate of all amounts each of which is an amount deducted in computing the individual's income for any preceding taxation year

(i)  in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph a of the second paragraph, or

(ii)  where the preceding year is before the year 1987, under paragraph c of section 70 to the extent permitted by paragraph b of section 71, as it read for that preceding year, in respect of additional voluntary contributions made in respect of a year that satisfies the conditions specified in subparagraph a.

1991, c. 25, s. 157; 2000, c. 5, s. 221.

965.0.4. (Repealed).

1991, c. 25, s. 157; 1995, c. 63, s. 98; 1998, c. 16, s. 213.

965.0.4.1. Where a taxpayer dies in a taxation year, for the purpose of computing the taxpayer's income for the year and the preceding taxation year, the following rules apply:

 (a) subparagraph b of the first paragraph of section 965.0.3 shall be read without reference to subparagraph ii thereof; and

 (b) subparagraph c of the first paragraph of section 965.0.3 shall be read as follows:

“(c) the amount by which

i. the aggregate of all amounts each of which is a contribution, other than an additional voluntary contribution, a contribution prescribed by regulation for the purposes of clause A of subparagraph i of paragraph c of subsection 4 of section 147.2 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) or a contribution included in the aggregate determined in respect of the individual for the year under subparagraph a of the second paragraph, made by the individual in the year or any preceding taxation year and after 31 December 1962, to a registered pension plan in respect of a particular year before the year 1990, if all or any part of the particular year is included in the individual's eligible service under the plan, exceeds

ii. the aggregate of all amounts each of which is an amount deducted, in computing the individual's income for any preceding taxation year, in respect of contributions included in the aggregate determined in respect of the individual for the year under subparagraph i.”

2000, c. 5, s. 222.

CHAPTER III 
TRANSFERS
1991, c. 25, s. 157.

965.0.5. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount,

 (b) the amount is transferred on behalf of a member in full or partial satisfaction of his entitlement to benefits under a money purchase provision of the plan as registered, and

 (c) the amount is transferred directly to

(i)  another registered pension plan to provide benefits in respect of the member under a money purchase provision of that plan,

(ii)  a registered retirement savings plan under which the member is the annuitant, within the meaning of paragraph b of section 905.1, or

(iii)  a registered retirement income fund under which the member is the annuitant, within the meaning of paragraph d of section 961.1.5.

1991, c. 25, s. 157; 1994, c. 22, s. 295.

965.0.6. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount,

 (b) the amount is transferred on behalf of a member in full or partial satisfaction of his entitlement to benefits under a money purchase provision of the plan as registered, and

 (c) the amount is transferred directly to another registered pension plan to fund benefits provided in respect of the member under a defined benefit provision of that plan.

1991, c. 25, s. 157.

965.0.7. An amount is transferred from a registered pension plan, in this section referred to as the transferor plan, in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount,

 (b) the amount consists of all or any part of the property held in connection with a defined benefit provision of the transferor plan,

 (c) the amount is transferred directly to another registered pension plan to be held in connection with a defined benefit provision of the other plan, and

 (d) the amount is transferred as a consequence of benefits becoming provided under the defined benefit provision of the other plan to one or more individuals who were members of the transferor plan.

1991, c. 25, s. 157.

965.0.8. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount no portion of which relates to an actuarial surplus,

 (b) the amount is transferred on behalf of a member in full or partial satisfaction of benefits to which the member is entitled, either absolutely or contingently, under a defined benefit provision of the plan as registered,

 (c) the amount does not exceed the amount referred to in paragraph c of subsection 4 of section 147.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and

 (d) the amount is transferred directly to

(i)  another registered pension plan and allocated to the member under a money purchase provision of that plan,

(ii)  a registered retirement savings plan under which the member is the annuitant, within the meaning of paragraph b of section 905.1, or

(iii)  a registered retirement income fund under which the member is the annuitant, within the meaning of paragraph d of section 961.1.5.

1991, c. 25, s. 157; 1994, c. 22, s. 296.

965.0.8.1. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is transferred in respect of the actuarial surplus under a defined benefit provision of the plan, and

 (b) the amount is transferred directly to another registered pension plan and allocated under a money purchase provision of that plan to one or more members of that plan.

1994, c. 22, s. 297.

965.0.9. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount no portion of which relates to an actuarial surplus,

 (b) the amount is transferred on behalf of an individual who is the spouse or former spouse of a member of the plan and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a partition of property between the member and the individual in settlement of rights arising out of, or on the breakdown of, their marriage, and

 (c) the amount is transferred directly to

(i)  another registered pension plan for the benefit of the individual,

(ii)  a registered retirement savings plan under which the individual is the annuitant, within the meaning of paragraph b of section 905.1, or

(iii)  a registered retirement income fund under which the individual is the annuitant, within the meaning of paragraph d of section 961.1.5.

1991, c. 25, s. 157; 1994, c. 22, s. 298; 1995, c. 49, s. 236; 1997, c. 14, s. 290; 2003, c. 2, s. 257.

965.0.10. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount,

 (b) the amount is transferred on behalf of a member who is entitled to the amount as a return of contributions made (or deemed to have been made) by the member under a defined benefit provision of the plan before 1 January 1991, or as interest, computed at a reasonable rate, in respect of those contributions, and

 (c) the amount is transferred directly to

(i)  another registered pension plan for the benefit of the member,

(ii)  a registered retirement savings plan under which the member is the annuitant, within the meaning of paragraph b of section 905.1, or

(iii)  a registered retirement income fund under which the member is the annuitant, within the meaning of paragraph d of section 961.1.5.

For the purposes of subparagraph b of the first paragraph, if an amount is transferred in accordance with section 965.0.7 to a defined benefit provision (in this paragraph referred to as the “current provision”) of a registered pension plan from a defined benefit provision (in this paragraph referred to as the “former provision”) of another registered pension plan on behalf of all or a significant number of members whose benefits under the former provision are replaced by benefits under the current provision, each current service contribution made at a particular time under the former provision by a member whose benefits are so replaced is deemed to be a current service contribution made at that particular time under the current provision by the member.

1991, c. 25, s. 157; 1994, c. 22, s. 299; 2015, c. 21, s. 350.

965.0.11. An amount is transferred from a registered pension plan in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount no portion of which relates to an actuarial surplus,

 (b) the amount is transferred on behalf of an individual who is entitled to the amount as a consequence of the death of a member of the plan and who was a spouse or former spouse of the member at the date of the member's death, and

 (c) the amount is transferred directly to

(i)  another registered pension plan for the benefit of the individual,

(ii)  a registered retirement savings plan under which the individual is the annuitant, within the meaning of paragraph b of section 905.1, or

(iii)  a registered retirement income fund under which the individual is the annuitant, within the meaning of paragraph d of section 961.1.5.

1991, c. 25, s. 157; 1994, c. 22, s. 300.

965.0.11.1. An amount is transferred from a registered pension plan, in this section referred to as the transferor plan, in accordance with this section if

 (a) the amount is a single amount;

 (b) the amount is transferred in respect of the surplus under a money purchase provision, in this section referred to as the former provision, of the transferor plan;

 (c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision, in this section referred to as the current provision, of the other plan;

 (d) the amount is transferred in conjunction with the transfer of amounts from the former provision to the current provision on behalf of all or a significant number of members of the transferor plan whose benefits under the former provision are replaced by benefits under the current provision; and

 (e) the transfer is acceptable, for the purposes of paragraph e of subsection 7.1 of section 147.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), to the Minister of National Revenue and that Minister has so notified the administrator of the transferor plan in writing.

For the purposes of subparagraph b of the first paragraph, surplus has the meaning assigned for the purposes of paragraph b of subsection 7.1 of section 147.3 of the Income Tax Act.

2003, c. 2, s. 258.

965.0.12. An amount is transferred from a registered pension plan, in this section referred to as the transferor plan, in accordance with this section if the following conditions are satisfied:

 (a) the amount is a single amount,

 (b) the amount is transferred in respect of the actuarial surplus under a defined benefit provision of the transferor plan;

 (c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision of the other plan;

 (d) the amount is transferred in conjunction with the transfer of other amounts from the defined benefit provision to the money purchase provision on behalf of all or a significant number of members of the transferor plan whose benefits under the defined benefit provision are replaced by benefits under the money purchase provision, and

 (e) the transfer is acceptable to the Minister of Revenue of Canada for the purposes of paragraph e of subsection 8 of section 147.3 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and the Minister has so notified the administrator of the transferor plan in writing.

1991, c. 25, s. 157; 2000, c. 5, s. 293; 2003, c. 2, s. 259.

965.0.13. Where an amount is transferred in accordance with sections 965.0.5 to 965.0.12, the following rules apply:

 (a) the amount shall not, by reason only of that transfer, be included in computing the income of any individual by reason of section 317, and

 (b) no deduction may be made under any provision of this Part in computing the income of any individual in respect of the amount transferred.

1991, c. 25, s. 157.

965.0.14. Where, on behalf of an individual, an amount is transferred from a registered pension plan, in this section referred to as the transferor plan, to another registered pension plan, a registered retirement savings plan or a registered retirement income fund and the transfer is not in accordance with any of sections 965.0.5 to 965.0.11, the amount is deemed to have been paid from the transferor plan to the individual.

1991, c. 25, s. 157; 1994, c. 22, s. 301; 2000, c. 5, s. 223.

965.0.15. Where an amount is transferred from a registered pension plan to another registered pension plan, to a registered retirement savings plan or to a registered retirement income fund, and a portion, but not all, of the amount is transferred in accordance with any of sections 965.0.5 to 965.0.12, the following rules apply:

 (a) section 965.0.13 applies in respect of the portion of the amount that is transferred in accordance with any of sections 965.0.5 to 965.0.12, and

 (b) section 965.0.14 applies in respect of the remainder of the amount.

1991, c. 25, s. 157; 1994, c. 22, s. 302.

965.0.16. Where the transfer in a calendar year of an amount from a registered pension plan on behalf of a member of the plan would, but for this section, be in accordance with section 965.0.5 or 965.0.6 and, for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), the registration of the plan is revocable at the end of the year as a consequence of an excess determined under any of paragraphs a and b of subsection 8 or 9 of section 147.1 of the said Act in respect of the member, such portion of the amount transferred as may reasonably be considered to derive from amounts allocated or reallocated to the member in the year or from earnings reasonably attributable to those amounts is deemed to be an amount that was not transferred in accordance with section 965.0.5 or 965.0.6, as the case may be, except to the extent expressly provided in writing by the Minister of Revenue of Canada for the purposes of subsection 13 of section 147.3 of the said Act.

1991, c. 25, s. 157; 2000, c. 5, s. 293.

965.0.16.1. An individual may deduct, in computing his income for a taxation year, the amount deductible for the year in computing his income for the purposes of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), under subsection 13.1 of section 147.3 of the said Act.

1994, c. 22, s. 303.

965.0.17. For the purposes of this chapter, where property held in connection with a particular pension plan is made available to pay benefits under another pension plan, the property is deemed to have been transferred from the particular plan to the other plan.

1991, c. 25, s. 157.

965.0.17.1. Where property held in connection with a benefit provision of a registered pension plan is made available to pay benefits under another benefit provision of the plan, sections 965.0.13 to 965.0.15 apply in respect of the transaction by which the property is made so available in the same manner as they would apply if the other benefit provision were in another registered pension plan.

2000, c. 5, s. 224.

CHAPTER IV 
ACQUISITION OF AN ANNUITY CONTRACT
2000, c. 5, s. 224.

965.0.17.2. For the purposes of this Part, the rules provided in the second paragraph apply where at any time an individual acquires, in full or partial satisfaction of the individual's entitlement to benefits under a registered pension plan, an interest in an annuity contract purchased from a licensed annuities provider and

 (a) the rights provided for under the contract are not materially different from those provided for under the plan as registered;

 (b) the contract does not permit premiums to be paid at or after that time, other than a premium paid at that time out of or under the plan to purchase the contract;

 (c) either the plan is not a plan in respect of which the Minister of Revenue of Canada may, under subsection 11 of section 147.1 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), give a notice of intent to revoke the registration of the plan or the Minister of Revenue of Canada waves the application of paragraph d of subsection 1 of section 147.4 of that Act with respect to the contract and so notifies the administrator of the plan in writing; and

 (d) the individual has not acquired the interest in the contract as a consequence of a transfer of property from the plan to a registered retirement savings plan or a registered retirement income fund.

The rules to which the first paragraph refers are as follows:

 (a) the individual is deemed not to have received an amount out of or under the registered pension plan as a consequence of acquiring the interest in the annuity contract; and

 (b) except for the purposes of sections 965.0.5 to 965.0.17.1, any amount received at or after the time referred to in the first paragraph by any individual under the contract is deemed to have been received under the registered pension plan.

2000, c. 5, s. 224.

965.0.17.3. For the purposes of this Part, the rules set out in the second paragraph apply where an amendment is made at any time to an annuity contract to which section 965.0.17.2 or paragraph a of section 2.3 applies and the rights provided for under the contract are materially altered because of the amendment, other than an amendment the sole effect of which is

 (a) to defer annuity commencement to not later than the end of the year in which the individual in respect of whom the annuity contract was purchased reaches 71 years of age; or

 (b) to enhance benefits under the annuity contract in connection with the demutualization, as defined in section 832.11, of an insurance corporation that is considered for the purposes of sections 832.11 to 832.25 to have been a party to the annuity contract.

The rules to which the first paragraph refers are the following:

 (a) each individual who has an interest in the annuity contract immediately before the time referred to in the first paragraph is deemed to have received at that time an amount under a pension plan equal to the fair market value of the interest immediately before that time;

 (b) the contract as amended is deemed to be a separate annuity contract issued at the time referred to in the first paragraph otherwise than pursuant to a pension plan; and

 (c) each individual who has an interest in the separate annuity contract immediately after the time referred to in the first paragraph is deemed to have acquired the interest at that time at a cost equal to the fair market value of the interest immediately after that time.

2000, c. 5, s. 224; 2001, c. 53, s. 202; 2009, c. 5, s. 387.

965.0.17.4. For the purposes of this Part, where an annuity contract, in this section referred to as the original contract, to which section 965.0.17.2 or paragraph a of section 2.3 applies is, at any time, replaced by another contract, the following rules apply:

 (a) the other contract is deemed to be the same contract as, and a continuation of, the original contract if the rights provided for under the other contract

(i)  are not materially different from those provided for under the original contract, or

(ii)  are materially different from those provided for under the original contract only because of an enhancement of benefits that can reasonably be considered to have been provided solely in connection with the demutualization, as defined in section 832.11, of an insurance corporation that is considered for the purposes of sections 832.11 to 832.25 to have been a party to the original contract; and

 (b) in any other case, each individual who has an interest in the original contract immediately before that time is deemed to have received at that time an amount under a pension plan equal to the fair market value of the interest immediately before that time.

2000, c. 5, s. 224; 2001, c. 53, s. 203.

965.0.18. (Repealed).

1998, c. 16, s. 214; 2000, c. 5, s. 225; 2009, c. 5, s. 388.

TITLE VI.0.2 
POOLED REGISTERED PENSION PLANS
2015, c. 21, s. 351.

CHAPTER I 
DEFINITIONS
2015, c. 21, s. 351.

965.0.19. In this Title,

administrator, of a pooled pension plan, means

 (a) a corporation resident in Canada that is responsible for the administration of the plan and that is authorized under the Pooled Registered Pension Plans Act (S.C. 2012, c. 16) or a similar law of a province to act as an administrator for one or more pooled pension plans; or

 (b) an entity designated in respect of the plan under section 21 of the Pooled Registered Pension Plans Act or any provision of a law of a province that is similar to that section;

member, of a pooled pension plan, means an individual (other than a trust) who holds an account under the plan;

pooled pension plan means a plan that is registered under the Pooled Registered Pension Plans Act or a similar law of a province;

qualifying annuity, for an individual, means a life annuity that

 (a) is payable to the individual or, where the annuity is constituted for the benefit of the individual and the individual's spouse jointly, is payable to the individual and, on the individual's death, to the individual's spouse;

 (b) is payable beginning no later than the later of the end of the calendar year in which the annuity is acquired and the end of the calendar year in which the individual attains 71 years of age;

 (c) unless the annuity is subsequently commuted into a single payment, is payable

(i)  at least annually, and

(ii)  in equal amounts, except for an amount that is not so payable solely because of an adjustment that would, if the annuity were an annuity under a retirement savings plan, be in accordance with any of subparagraphs iii to v of paragraph b of subsection 3 of section 146 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

 (d) if the annuity includes a guaranteed period, requires that

(i)  the guaranteed period not exceed 15 years, and

(ii)  in the event of the death of the individual and that of the individual's spouse during the guaranteed period, any remaining amounts otherwise payable be commuted into a single payment as soon as practicable after the later death; and

 (e) does not permit any premiums to be paid, other than the premium paid from the PRPP to acquire the annuity;

qualifying survivor, in relation to a member of a PRPP, means an individual who, immediately before the death of the member

 (a) was a spouse of the member; or

 (b) was a child or grandchild of the member who was financially dependent on the member for support;

single amount means an amount that is not part of a series of periodic payments;

successor member means an individual who was the spouse of a member of a PRPP immediately before the death of the member and who acquires, as a consequence of the death, all of the member's rights in respect of the member's account under the PRPP.

For the purposes of the definition of “qualifying survivor” in the first paragraph, a child or grandchild of the member is presumed not to be financially dependent on the member at the time of the death of the member if the child's or grandchild's income, for the taxation year preceding the taxation year in which the member died, was greater than the amount determined by the formula in subsection 1.1 of section 146 of the Income Tax Act for that preceding year.

2015, c. 21, s. 351.

CHAPTER II 
TAX
2015, c. 21, s. 351.

965.0.20. No tax is payable under this Part by a trust governed by a PRPP on its taxable income for a taxation year.

2015, c. 21, s. 351.

965.0.21. Despite section 965.0.20, a trust governed by a PRPP that carries on a business in a taxation year shall pay tax under this Part on the amount that would be its taxable income for the year if it had no incomes or losses from sources other than that business.

2015, c. 21, s. 351.

965.0.22. For the purposes of section 965.0.21, the following rules apply:

 (a) a capital gain or capital loss from the disposition of a property held in connection with a business is deemed to be income or a loss, as the case may be, from carrying on the business; and

 (b) the trust’s income is to be computed without reference to paragraph a of section 657 and sections 666 and 668.

2015, c. 21, s. 351.

CHAPTER III 
DEDUCTIONS
2015, c. 21, s. 351.

965.0.23. There may be deducted in computing an employer’s income for a taxation year, the amount that, by virtue of paragraph q of subsection 1 of section 20 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), is allowed as a deduction for the year in computing the employer’s income for the purposes of that Act in respect of a contribution made to a PRPP.

2015, c. 21, s. 351.

965.0.24. For the purposes of Title IV (other than sections 924.1, 931.1, 931.3 and 931.5), and paragraph a of sections 935.3 and 935.14, a contribution made to a pooled registered pension plan by a member of such a plan is deemed to be a premium paid by the member to a registered retirement savings plan under which the member is the annuitant, within the meaning of paragraph b of section 905.1.

2015, c. 21, s. 351.

965.0.25. There may be deducted in computing the income of a member of a PRPP for the taxation year in which the member dies, an amount not exceeding the amount determined, after all amounts payable from the member's account under the PRPP have been distributed, by the formula


A - B.


In the formula in the first paragraph,

 (a) A is the aggregate of all amounts each of which is an amount in respect of the member's account

(i)  included in computing the member's income under section 965.0.28 because of the application of section 965.0.30,

(ii)  included in computing the income of another taxpayer under section 965.0.32 or 965.0.34, or

(iii)  transferred in accordance with section 965.0.35 in circumstances described in subparagraph iii of paragraph b of that section; and

 (b) B is the aggregate of all distributions made from the member's account after the member's death.

2015, c. 21, s. 351.

965.0.26. Unless the Minister has waived in writing the application of this section with respect to all or any portion of the amount determined under section 965.0.25, that section does not apply in respect of a member's account under a PRPP if the last distribution from the account was made after the end of the calendar year following the year in which the member died.

2015, c. 21, s. 351.

965.0.27. For the purposes of section 133.4, subparagraph i of paragraph a of the definition of “excluded right or interest” in section 785.0.1, subparagraph d of the first paragraph of section 890.0.1, sections 890.0.2, 913 and 924.0.1, paragraph b of the definition of “excluded premium” in the first paragraph of section 935.1, paragraph c of the definition of “excluded premium” in the first paragraph of section 935.12, the second paragraph of section 961.17 and Chapter III of Title VI.0.1, a member's account under a pooled registered pension plan is deemed to be a registered retirement savings plan under which the member is the annuitant, within the meaning of paragraph b of section 905.1.

2015, c. 21, s. 351.

CHAPTER IV 
AMOUNTS TO BE INCLUDED
2015, c. 21, s. 351.

965.0.28. If a taxpayer is a member of a PRPP, the taxpayer shall include, in computing income for a taxation year, the aggregate of all amounts each of which is a distribution made in the year from the member's account under the PRPP, other than an amount that is

 (a) included in computing the income of another taxpayer under section 965.0.29;

 (b) referred to in section 965.0.36; or

 (c) distributed after the death of the member.

2015, c. 21, s. 351.

965.0.29. If a taxpayer is the employer of a member of a PRPP, the taxpayer shall include, in computing income for a taxation year, the aggregate of all amounts each of which is a return of contributions that is described in clause A of subparagraph ii of paragraph d of subsection 3 of section 147.5 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) and that is made to the taxpayer in the year.

2015, c. 21, s. 351.

965.0.30. If a member of a PRPP dies and there is no successor member in respect of the deceased member’s account under the PRPP, an amount, equal to the amount by which the fair market value of all property held in connection with the account immediately before the death exceeds the total of all amounts distributed from the account that are described in section 965.0.32, is deemed to have been distributed from the account immediately before the death.

2015, c. 21, s. 351.

965.0.31. If a member of a PRPP dies and there is a successor member in respect of the deceased member's account under the PRPP, the following rules apply:

 (a) the account ceases to be an account of the deceased member at the time of the death;

 (b) the successor member is, after the time of the death, deemed to hold the account as a member of the PRPP; and

 (c) the successor member is deemed to be a separate member in respect of any other account under the PRPP that the successor member holds.

2015, c. 21, s. 351.

965.0.32. If, as a consequence of the death of a member of a PRPP, an amount is distributed in a taxation year from the member's account under the PRPP to, or on behalf of, a qualifying survivor in relation to the member, the amount must be included in computing the qualifying survivor's income for the year, except to the extent that the amount is referred to in section 965.0.36.

2015, c. 21, s. 351.

965.0.33. If an amount is distributed at a particular time from a deceased member's account under a PRPP to the member's legal representative and a qualifying survivor of the member is entitled to all or a portion of the amount in full or partial satisfaction of the qualifying survivor's rights as a beneficiary under the deceased's succession, then, for the purposes of section 965.0.32, the amount or portion of the amount, as the case may be, is deemed to have been distributed at that time from the member's account to the qualifying survivor (and not to the legal representative) to the extent that it is so designated jointly by the legal representative and the qualifying survivor in the prescribed form filed with the Minister.

2015, c. 21, s. 351.

965.0.34. A taxpayer who is not a qualifying survivor in relation to a member of a PRPP shall include, in computing income for a taxation year, the aggregate of all amounts each of which is an amount determined by the formula


A - B.


In the formula in the first paragraph,

 (a) A is the amount of a distribution made in the year from the member's account under the PRPP as a consequence of the member's death to, or on behalf of, the taxpayer; and

 (b) B is an amount designated by the administrator of the PRPP not exceeding the lesser of

(i)  the amount of the distribution, and

(ii)  the amount by which the fair market value of all property held in connection with the account immediately before the death of the member exceeds the total of

(1)  the amount designated in accordance with this paragraph in respect of any prior distribution made from the account, and

(2)  an amount included under section 965.0.32 in computing the income of a qualifying survivor in relation to the member.

2015, c. 21, s. 351.

CHAPTER V 
TRANSFERS
2015, c. 21, s. 351.

965.0.35. An amount is transferred from a member's account under a pooled registered pension plan in accordance with this section if

 (a) the amount is a single amount;

 (b) the amount is transferred on behalf of an individual

(i)  who is the member,

(ii)  who is a spouse or former spouse of the member and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a partition of property between the member and the individual, in settlement of rights arising out of, or on the breakdown of, their marriage, or

(iii)  who is entitled to the amount as a consequence of the death of the member and was a spouse of the member immediately before the death; and

 (c) the amount is transferred directly to

(i)  the individual's account under the plan,

(ii)  another pooled registered pension plan in respect of the individual,

(iii)  a registered pension plan for the benefit of the individual,

(iv)  a registered retirement savings plan or registered retirement income fund under which the individual is the annuitant, within the meaning of paragraph b of section 905.1 or paragraph d of section 961.1.5, as the case may be, or

(v)  a licensed annuities provider, within the meaning of section 965.0.1, to acquire a qualifying annuity for the individual.

2015, c. 21, s. 351.

965.0.36. Where an amount is transferred in accordance with section 965.0.35 from a member's account under a PRPP on behalf of an individual, the following rules apply:

 (a) the amount must not, by reason only of that transfer, be included in computing the income of the individual; and

 (b) no deduction may be made in respect of the amount in computing the income of any taxpayer.

2015, c. 21, s. 351.

965.0.37. If an amount is transferred in accordance with section 965.0.35 to acquire a qualifying annuity, an individual shall include, in computing income for a taxation year under this Title and not under any other provision of this Act, any amount received by the individual during the year out of or under the annuity or as proceeds from the disposition of the annuity.

2015, c. 21, s. 351.

TITLE VI.1 
STOCK SAVINGS PLANS
1979, c. 14, s. 4; 1983, c. 44, s. 37; 1983, c. 44, s. 69.

CHAPTER I 
INTERPRETATION
1979, c. 14, s. 4; 1983, c. 44, s. 37; 1983, c. 44, s. 69.

965.1. In this Title,

 (a) assets means the assets of a corporation as determined under sections 965.3 to 965.3.2 and 965.4.1.2;

 (b) qualifying share means a share that is not referred to in section 965.9.4 or 965.9.7.0.1 and meeting the requirements of any of sections 965.7, 965.9, 965.9.1.0.0.1, 965.9.1.0.1 to 965.9.1.0.6 and 965.9.1.1 and, with the necessary modifications, a fraction of such a share not reimbursed;

 (b.0.1) common share with voting rights means a common share carrying a right to vote in all circumstances in the issuing corporation that is neither a common share with full voting rights nor a subordinate voting share;

 (b.1) (paragraph repealed);

 (b.2) (paragraph repealed);

 (b.3) valid share means a share described in section 965.9.7.1 or 965.9.7.2;

 (c) (paragraph repealed);

 (c.1) paid-up capital

(i)  in respect of a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that share and any amount appearing elsewhere in its books and received in consideration for the issue of that share, and

(ii)  in respect of a subscription right in a share of the capital stock of a corporation means the amount appearing in its books in the capital stock account in respect of that right and received in consideration for the issue of that right;

 (d) (paragraph repealed);

 (d.1) (paragraph repealed);

 (e) (paragraph repealed);

 (f) dealer means a dealer, within the meaning defined in section 5 of the Securities Act (chapter V-1.1), having an establishment in Québec and registered with the Autorité des marchés financiers and, after 30 September 1983, an unincorporated mutual fund or a mutual fund within the meaning of the said Act and an insurer, a bank, a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on therein the business of offering its services as trustee, a savings and credit union and any other prescribed person;

 (g) adjusted cost means the adjusted cost of a share, qualifying security or qualifying non-guaranteed convertible security as determined under sections 965.6 to 965.6.0.5;

 (g.1) non-guaranteed convertible security issue means the distribution of any non-guaranteed convertible security in accordance with a receipt granted after 2 May 1991 by the Autorité des marchés financiers and in respect of which the application for a receipt has been filed before 13 June 2003;

 (h) public share issue means the distribution of a share or subscription right in a share made in accordance with a receipt from the Autorité des marchés financiers, provided that the application for a receipt has been filed before 13 June 2003, or in accordance with an exemption from filing a prospectus provided for in section 52 or 263 of the Securities Act or, if section 965.9.1.1 applies, in section 51 of that Act, provided that the distribution has been made before 13 June 2003;

 (h.0.1) public security issue means the distribution of any security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers and in respect of which the application for a receipt or an exemption from filing a prospectus has been filed before 13 June 2003;

 (h.0.1.1) convertible security issue means the distribution of a convertible security in accordance with a receipt or an exemption from filing a prospectus granted by the Autorité des marchés financiers and in respect of which the application for a receipt or an exemption from filing a prospectus has been filed before 13 June 2003;

 (h.0.2) investment fund means an investment fund described in section 965.6.21;

 (h.1) investment group means a group of individuals described in section 965.6.1;

 (h.2) stock ownership plan means a plan described in section 965.6.8;

 (i) stock savings plan means an arrangement described in section 965.2;

 (j) total income, in respect of an individual for a year means the amount by which the individual’s income for the year that would be determined under section 28 but for paragraph k.0.1 of section 311, section 311.1 where that section applies to a social assistance payment other than a payment received as last resort financial assistance under the Act respecting income support, employment assistance and social solidarity (chapter S-32.001) or as similar government assistance, and paragraph a of section 317 where that paragraph refers to the amount of any supplement or allowance received under the Old Age Security Act (Revised Statutes of Canada, 1985, chapter O-9) or to a payment similar to such a supplement or allowance made under a law of a province, exceeds the amount the individual deducts for the year in computing the individual’s taxable income under Titles VI.5 and VI.5.1 of Book IV;

 (j.0.0.1) venture capital corporation means a corporation

(i)  whose main activity consists in investing funds in the form of shares of the capital stock of another corporation,

(ii)  that generally participates in the management of the other corporation in which it invests funds,

(iii)  whose funds it invests in another corporation are generally not guaranteed by the assets of the other corporation, and

(iv)  whose initial investment in another corporation does not exceed 20% of its funds available for investments of that kind;

 (j.0.1) qualified corporation means a corporation mentioned in any of sections 965.10, 965.11.1, 965.11.5, 965.11.6 and 965.11.7.1 and not referred to in sections 965.11.11 to 965.11.20 or governed by an Act establishing a labour-sponsored fund, by the Act respecting Québec business investment companies (chapter S-29.1) or by the Act constituting Capital régional et coopératif Desjardins (chapter C-6.1);

 (j.0.2) growth corporation means a corporation described in any of sections 965.17.2 to 965.17.5 that is not governed by one of the Acts mentioned in paragraph j.0.1;

 (j.0.3) (paragraph repealed);

 (j.1) security means any investment in an investment fund;

 (j.2) qualifying security means a security meeting the requirements of section 965.9.8;

 (j.3) valid qualifying security in respect of a year means a qualifying security acquired by an individual in that year and held without interruption, throughout that part of the year which follows the acquisition, in a stock savings plan of which the individual is beneficiary;

 (j.4) non-guaranteed convertible security means a debenture or non-guaranteed preferred share, other than a qualifying share, debenture or preferred share issued as part of a convertible security issue, that may be converted at any time by the holder only into a common share with voting rights;

 (j.5) qualifying non-guaranteed convertible security means a non-guaranteed convertible security not referred to in section 965.9.8.5 or 965.9.8.10 and meeting the requirements of section 965.9.8.1;

 (k) negotiable instrument means any form of investment contemplated in section 1 of the Securities Act, disregarding the exception provided in subparagraph 3 of the first paragraph of that section;

 (l) convertible security means a debenture or preferred share, other than a qualifying share, that has been acquired for money consideration as part of a convertible security issue or acquired in replacement or substitution for a convertible security and that may be converted by the holder only into a common share with voting rights, a common share with full voting rights or a subordinate voting share.

1979, c. 14, s. 4; 1981, c. 31, s. 211; 1982, c. 48, s. 341; 1983, c. 44, s. 37; 1984, c. 15, s. 212; 1984, c. 35, s. 20; 1986, c. 15, s. 135; 1987, c. 21, s. 36; 1987, c. 67, s. 175; 1988, c. 4, s. 82; 1989, c. 5, s. 159; 1990, c. 7, s. 85; 1992, c. 1, s. 87; 1993, c. 19, s. 75; 1993, c. 64, s. 97; 1995, c. 1, s. 97; 1995, c. 63, s. 99; 1996, c. 39, s. 246; 1997, c. 3, s. 43; 1997, c. 85, s. 203; 2000, c. 39, s. 105; 2001, c. 53, s. 204; 2002, c. 9, s. 28; 2002, c. 40, s. 89; 2002, c. 45, s. 521; 2003, c. 9, s. 123; 2004, c. 21, s. 224; 2004, c. 37, s. 90; 2005, c. 38, s. 214; 2006, c. 13, s. 71.

CHAPTER II 
GENERALITIES
1983, c. 44, s. 37.

965.2. A stock savings plan is an arrangement made between an individual who is not a trust, or an investment group and a dealer, under which that individual or investment group entrusts to that dealer the custody of such of his or its qualifying shares, valid shares and qualifying non-guaranteed convertible securities as he or it may indicate that are not included in any other plan of any kind for the purposes of this Act, except a prescribed plan.

A stock savings plan is also an arrangement made between an individual who is not a trust and a dealer or an investment fund, under which the individual entrusts

 (a) to the dealer the custody of such of his qualifying securities as he may indicate that are not included in any other plan of any kind for the purposes of this Act, except a prescribed plan; or

 (b) to the investment fund the custody of such of his qualifying securities, issued by the investment fund, as he may indicate that are not included in any other plan of any kind for the purposes of this Act, except a prescribed plan.

1979, c. 14, s. 4; 1982, c. 48, s. 342; 1983, c. 44, s. 37; 1986, c. 15, s. 136; 1988, c. 4, s. 83; 1989, c. 5, s. 160; 1990, c. 7, s. 86; 1992, c. 1, s. 88; 1995, c. 1, s. 98.

965.3. The assets of a corporation are the assets shown in its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles, less the surplus reassessment of its property and less the amount of its incorporeal assets that exceeds the expenditure made in that respect without taking account of any consideration for the purchase of those incorporeal assets which consists of shares of the corporation's capital stock.

1979, c. 14, s. 4; 1982, c. 48, s. 343; 1983, c. 44, s. 37; 1984, c. 35, s. 21; 1987, c. 21, s. 37; 1995, c. 63, s. 100; 1997, c. 3, s. 71; 2005, c. 1, s. 202.

965.3.1. The assets of a corporation which is associated with another corporation in the 12 months preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, are the aggregate of the assets of the corporation and of each corporation associated with it, as determined under section 965.3 or 965.3.2, as the case may be, less the amount of investments the corporations own in each other, and less the balance of accounts between the corporations.

1983, c. 44, s. 37; 1984, c. 35, s. 21; 1987, c. 21, s. 38; 1989, c. 5, s. 161; 1997, c. 3, s. 44; 2003, c. 9, s. 124.

965.3.2. The assets of a corporation which, within the 365 days preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, results from an amalgamation within the meaning of section 544 are equivalent to the greater of the following amounts:

 (a) the greatest amount, where such is the case, of the assets, as determined under section 965.3 of the corporation resulting from the amalgamation; and

 (b) the amount of the aggregate of the assets of each of the predecessor corporations as determined under section 965.3 by replacing the reference in that section to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus by a reference to its financial statements submitted to the shareholders for each of the taxation years ended during the 365 days preceding the time of amalgamation and taking account of only the greatest amount, where such is the case, of the assets of each of the predecessor corporations.

1987, c. 21, s. 39; 1997, c. 3, s. 71.

965.4. (Repealed).

1979, c. 14, s. 4; 1982, c. 26, s. 302; 1983, c. 44, s. 37; 1984, c. 35, s. 21; 1987, c. 21, s. 40; 1995, c. 63, s. 101; 1997, c. 3, s. 71; 2003, c. 9, s. 125.

965.4.1. (Repealed).

1983, c. 44, s. 37; 1984, c. 35, s. 21; 1987, c. 21, s. 41; 1989, c. 5, s. 162; 1997, c. 3, s. 71; 2003, c. 9, s. 125.

965.4.1.1. (Repealed).

1987, c. 21, s. 42; 1997, c. 3, s. 71; 2003, c. 9, s. 125.

965.4.1.2. For the purposes of sections 965.3 to 965.3.2, the assets shall be computed by making every possible combination in such computation in respect of each fiscal period of each corporation referred to, where that is the case, in those sections.

1987, c. 21, s. 42; 1997, c. 3, s. 71; 2003, c. 9, s. 126.

965.4.2. For the purposes of section 965.3, the following rules apply:

 (a) where any of the computations referred to therein must be made in respect of a corporation that is in its first fiscal period, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus shall be replaced by a reference to its financial statements at the beginning of its first fiscal period; and

 (b) where any of the computations referred to therein must be made in respect of a corporation that, within the 365 days preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, modified its usual and accepted fiscal period, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus shall be replaced by a reference to its financial statements submitted to the shareholders for each of the taxation years ended in the 365 days preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

1984, c. 15, s. 213; 1984, c. 35, s. 22; 1987, c. 21, s. 43; 1997, c. 3, s. 71; 2003, c. 9, s. 126.

965.4.3. For the purposes of sections 965.3 to 965.4.2, where any of the computations referred to therein must be made in respect of a corporation described in section 965.4.4 that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue, the computation is made without taking into account the assets, where such is the case, of a government or of another corporation mentioned in section 965.4.4 which is no longer associated with it on the date on which the public share issue, the convertible security issue or the non-guaranteed convertible security issue, as the case may be, ends and, in the case of the other corporation, was not directly or indirectly controlled by the issuing corporation at any time in the 12 months preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

1984, c. 35, s. 23; 1987, c. 21, s. 43; 1990, c. 7, s. 87; 1992, c. 1, s. 89; 1997, c. 3, s. 71; 2003, c. 9, s. 127.

965.4.4. A corporation contemplated in section 965.4.3 is a corporation which, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus, would be a growth corporation or a qualified corporation but for a government or another corporation associated with a government associated with it on that date, except a corporation directly or indirectly controlled by the issuing corporation on that date or that was so controlled at any time in the 12 months preceding that date, and which is, on the date on which the public share issue, the convertible security issue or the non-guaranteed convertible security issue, as the case may be, ends, no longer associated with that government or that other corporation.

The issuing corporation is also a corporation contemplated in section 965.4.3 for the 12 months following the date on which it is no longer associated with that government or that other corporation.

1984, c. 35, s. 23; 1988, c. 4, s. 84; 1990, c. 7, s. 88; 1992, c. 1, s. 90; 1993, c. 64, s. 98; 1997, c. 3, s. 71.

965.4.4.1. For the purposes of sections 965.3 to 965.3.2 and 965.4.1.2, where any of the computations referred to therein must be made in respect of a particular corporation that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue and that would be, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus, a growth corporation or a qualified corporation but for a venture capital corporation associated with it on that date, the computation is made without taking into account the assets of that venture capital corporation if, on the date on which the public share issue, the convertible security issue or the non-guaranteed convertible security issue, as the case may be, ends, the particular corporation is no longer associated with that venture capital corporation.

1993, c. 64, s. 99; 1997, c. 3, s. 71; 1999, c. 83, s. 125; 2003, c. 9, s. 128.

965.4.5. For the purposes of sections 965.4.3 to 965.4.4.1, a corporation is associated with another corporation on a date if it is so designated by regulation.

1984, c. 35, s. 23; 1993, c. 64, s. 100; 1997, c. 3, s. 71.

965.4.6. For the purposes of this Title, where a corporation must meet a requirement in respect of which section 965.3 or 965.3.1 applies, the requirement must be met for each of its fiscal periods referred to, where that is the case, in that section.

1987, c. 21, s. 44; 1997, c. 3, s. 71; 2003, c. 9, s. 129.

965.5. For the purposes of sections 965.3 to 965.3.2 and 965.4.1.2, where a corporation or a corporation associated with it reduces its assets by any transaction for the purpose of qualifying the corporation as a growth corporation or as a corporation whose assets are under $350,000,000 or as a qualified corporation, as the case may be, the assets are deemed not to have been reduced unless the Minister decides otherwise.

1979, c. 14, s. 4; 1981, c. 31, s. 212; 1983, c. 44, s. 37; 1987, c. 21, s. 45; 1988, c. 4, s. 85; 1992, c. 1, s. 91; 1993, c. 64, s. 101; 1997, c. 3, s. 71; 1999, c. 83, s. 126; 2000, c. 39, s. 106.

965.5.1. For the purposes of this Title and sections 1049.2.6 and 1049.2.7.1 to 1049.2.7.3, where a qualifying non-guaranteed convertible security, issued as part of a non-guaranteed convertible security issue, or a preferred share referred to in paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5, issued as part of a public share issue, is redeemed or repaid by the issuing corporation and the consideration received by the holder consists only of shares identical in relation to the terms, conditions, rights and other characteristics attaching thereto, to the shares the individual would have obtained had the individual exercised the conversion right conferred by that qualifying non-guaranteed convertible security or preferred share, as the case may be, the qualifying non-guaranteed convertible security or preferred share is deemed to be converted into one or more such identical shares and each such share is deemed to have been acquired by the holder as a result of the exercise of the conversion right conferred on the holder of the qualifying non-guaranteed convertible security or the preferred share, as the case may be.

1997, c. 85, s. 204; 1999, c. 83, s. 273; 2002, c. 40, s. 90.

965.6. The adjusted cost of a share for an individual, an investment group or an investment fund, hereinafter called purchaser, is obtained by multiplying the cost of the share for the purchaser, determined without taking into account the borrowing costs, brokerage or custody fees or other similar costs related to the share, by

 (a) (paragraph repealed);

 (a.1) (paragraph repealed);

 (a.2) (paragraph repealed);

 (a.3) (paragraph repealed);

 (b) (paragraph repealed);

 (b.1) 125% in the case of a qualifying share of a corporation described in section 965.11.7.1 that is acquired by the purchaser and issued before 15 May 1992 as part of a public share issue in respect of which the receipt for the final prospectus or the exemption from filing a prospectus was granted after 11 November 1986, and 150% in the case of such a share that is issued after 14 May 1992, other than a share referred to in paragraph b.1.1 or b.2;

 (b.1.1) 75% in the case of a qualifying share of a corporation described in section 965.11.7.1 that is

(i)  a preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 and is issued as part of a public share issue in respect of which the receipt for the final prospectus or, where applicable, the exemption from filing a prospectus is granted after 3 July 1997, or

(ii)  a common share that meets the requirements of paragraph a of section 965.9.1.0.4.2 and is acquired as a result of the exercise of a conversion right conferred on the holder of a qualifying share that is a preferred share referred to in subparagraph i;

 (b.2) 75% in the case of a qualifying share of a corporation described in section 965.11.7.1 that is

(i)  a preferred share that meets the requirements of paragraph b of section 965.9.1.0.5 and is issued as part of a public share issue in respect of which the receipt for the final prospectus or, where applicable, the exemption from filing a prospectus is granted after 25 March 1997, or

(ii)  a common share with voting rights acquired as a result of the exercise of a conversion right conferred on the holder of a qualifying share that is a preferred share referred to in subparagraph i;

 (c) (paragraph repealed);

 (c.1) (paragraph repealed);

 (c.2) (paragraph repealed);

 (c.3) (paragraph repealed);

 (c.4) (paragraph repealed);

 (c.5) (paragraph repealed);

 (c.6) (paragraph repealed);

 (c.7) 75% in the case of a qualifying share that is a common share with voting rights issued by a corporation, other than a growth corporation, whose assets are under $350,000,000 and that is not a share referred to in paragraph b.1 or b.2 or in paragraph c.8;

 (c.8) 0% in the case of a qualifying share that is a common share with voting rights issued by a corporation whose assets are $350,000,000 or more, where the share is issued otherwise than under an exemption from filing a prospectus granted before 21 May 1993 under any of subparagraphs 2, 3 and 5 of the first paragraph of section  52 of the Securities Act (chapter V-1.1) and is acquired after 20 May 1993 as a result of the exercise of a right to subscribe a share conferred as part of a public share issue in respect of which the receipt for the final prospectus or the exemption from filing a prospectus was granted after 1 May 1986, or the exercise of a conversion right conferred on the holder of a convertible security issued as part of a convertible security issue;

 (c.9) 50% in the case of a qualifying share that is a common share with voting rights issued by a growth corporation as a result of the exercise of a conversion right conferred on the holder of a qualifying non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue in respect of which the receipt for the final prospectus is granted after 25 March 1997;

 (d) 100% in the case of any other qualifying share.

1979, c. 14, s. 4; 1981, c. 31, s. 213; 1982, c. 48, s. 344; 1983, c. 44, s. 37; 1984, c. 15, s. 214; 1986, c. 15, s. 137; 1988, c. 4, s. 86; 1989, c. 5, s. 163; 1990, c. 7, s. 89; 1992, c. 1, s. 92; 1993, c. 19, s. 76; 1993, c. 64, s. 102; 1997, c. 3, s. 71; 1997, c. 85, s. 205; 1999, c. 83, s. 127; 2000, c. 39, s. 107; 2003, c. 9, s. 130.

965.6.0.1. For the purposes of section 965.6, the percentages provided therein shall be increased by 25 percentage points where a share is acquired by an individual under a stock ownership plan as part of a public share issue in respect of which the receipt for the final prospectus or an exemption from filing a prospectus was granted after 1 May 1986.

1987, c. 21, s. 46.

965.6.0.2. For the purposes of section 965.6, the adjusted cost of a qualifying share acquired by an individual, an investment group or an investment fund by exercising a subscription right conferred as part of a public share issue in respect of which the receipt for the final prospectus or an exemption from filing a prospectus was granted after 1 May 1986 shall be computed as though the date of the receipt for the final prospectus or of the exemption from filing a prospectus were in the year in which the share was acquired.

1987, c. 21, s. 46; 1988, c. 4, s. 87.

965.6.0.2.0.1. For the purposes of section 965.6, the adjusted cost of a qualifying share acquired by an individual, an investment group or an investment fund, as a result of the exercise of a conversion right conferred on the holder of a convertible security, a qualifying non-guaranteed convertible security or a preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5, shall be computed according to the following rules:

 (a) where the conversion value is stated in the final prospectus or in the application for an exemption from filing a prospectus relating to the issue of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, taking into consideration that the conversion value represents the cost of the qualifying share to the acquirer thereof and that the qualifying share is issued as part of a public share issue in respect of which the date of the receipt for the final prospectus or, as the case may be, of the exemption from filing a prospectus is in the year of acquisition of the share; and

 (b) in any other case, taking into consideration that the quotient obtained by dividing the principal amount of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, by the number of shares issued in accordance with the method stated in the final prospectus or the application for an exemption from filing a prospectus relating to the issue of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, represents the cost of the qualifying share to the acquirer thereof and that the qualifying share is issued as part of a public share issue in respect of which the date of the receipt for the final prospectus or, as the case may be, of the exemption from filing a prospectus is in the year of acquisition of the share.

1990, c. 7, s. 90; 1997, c. 85, s. 206; 1999, c. 83, s. 273; 2002, c. 40, s. 91.

965.6.0.2.0.2. (Repealed).

1992, c. 1, s. 93; 1993, c. 64, s. 103; 2003, c. 9, s. 131.

965.6.0.2.0.3. (Repealed).

1993, c. 64, s. 104; 2003, c. 9, s. 131.

965.6.0.2.1. The adjusted cost of a share that is a valid share for an individual, an investment group or an investment fund, in this section referred to as the purchaser, is equal to the cost of the share for the purchaser, determined without reference to the borrowing costs, brokerage or custody fees or other similar costs related to the share.

1989, c. 5, s. 164; 1992, c. 1, s. 94; 1993, c. 19, s. 77; 1997, c. 3, s. 71; 2003, c. 9, s. 132.

965.6.0.3. The adjusted cost of a qualifying security for an individual is obtained by multiplying the cost of the security for the individual, determined without taking into account the borrowing costs, subscription or custody fees or other similar costs related to the security, by

 (a) the percentage stipulated in that respect in the final prospectus or in the application for an exemption from filing a prospectus relating to its issue; or

 (b) where it is so stipulated in the final prospectus or in the application for an exemption from filing a prospectus relating to its issue, the percentage determined not later than 60 days after the year of its issue and obtained by estimating, as a percentage, such proportion as is represented,

(i)  in respect of an investment fund that has agreed to meet the requirements set out in section 965.6.23 in respect of the public security issue as part of which the qualifying security was issued, by the ratio between, on the one hand, the adjusted cost of the aggregate of all qualifying shares or all qualifying non-guaranteed convertible securities purchased in that year by the investment fund with the proceeds of the public issue of securities that are valid qualifying securities in respect of the year or, in the case of qualifying shares, acquired in the year by the investment fund, as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the year by the investment fund with the proceeds of the issue, and, on the other hand, the proceeds of the issue;

(ii)  in respect of an investment fund that has agreed to meet the requirements set out in section 965.6.23.1 in respect of the public security issue as part of which the qualifying security was issued, by the ratio between, on the one hand, the aggregate of the adjusted cost of the aggregate of all qualifying shares or all qualifying non-guaranteed convertible securities that are the subject of the undertaking given by the investment fund in respect of the public security issue in accordance with paragraph a of the said section and that may be acquired by it for an amount equal to the particular amount referred to in paragraph b of the said section in respect of the year, and the adjusted cost of the aggregate of qualifying shares or qualifying non-guaranteed convertible securities not the subject of the undertaking under section 965.6.0.4 purchased by the investment fund in that year with that portion of the proceeds of the public issue of securities that are valid qualifying securities in respect of that year in excess of the particular amount or, in the case of qualifying shares, acquired by it in that year as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the year by the investment fund with such portion of the proceeds of the issue and, on the other hand, the proceeds of the public issue of securities that are valid qualifying securities in respect of that year.

1988, c. 4, s. 87; 1989, c. 5, s. 165; 1990, c. 7, s. 91; 1991, c. 8, s. 60; 1992, c. 1, s. 95; 1993, c. 19, s. 78; 1997, c. 85, s. 207; 1999, c. 83, s. 273.

965.6.0.4. Where an investment fund has made the election provided in section 965.6.23.1 in respect of its first public security issue consisting of securities that may be included in a stock savings plan, a qualifying share or qualifying non-guaranteed convertible security described in paragraph a of the said section that is acquired by the investment fund in a particular year with the proceeds of the issue for the particular year or, in the case of a qualifying share, that is acquired in a particular year as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the particular year by the investment fund with the proceeds of the issue, is, in respect of the particular year, deemed, for the purposes of subparagraph ii of paragraph b of section 965.6.0.3 and paragraph b of section 965.6.23.1, to be a qualifying share or a qualifying non-guaranteed convertible security, as the case may be, that is the subject of the undertaking given by the investment fund in accordance with the said paragraph a, unless the investment fund designates the share or the security, as the case may be, as not being the subject of the undertaking, and, for that purpose, such a designation cannot be made by the investment fund in respect of a qualifying share or a qualifying non-guaranteed convertible security, as the case may be, except where that qualifying share or that qualifying non-guaranteed convertible security, as the case may be, the other qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, so designated by the investment fund for the particular year and the qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, that are not described in the said paragraph a and that have been acquired in the particular year by the investment fund with the proceeds of the issue or, in the case of qualifying shares, that have been acquired in the particular year by the investment fund as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased by the investment fund with the proceeds of the issue, may all reasonably be considered to have been acquired with that portion of the proceeds of the issue in excess of the portion, that is the subject of the undertaking given by the investment fund in accordance with the said paragraph a, of the proceeds of the issue for the particular year.

The presumption provided in the first paragraph applies in respect of a qualifying share or a qualifying non-guaranteed convertible security only where the adjusted cost of the aggregate of the other qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, in respect of which the presumption has applied for the particular year is lower than the particular amount referred to in paragraph b of section 965.6.23.1 in respect of the particular year.

1991, c. 8, s. 61; 1992, c. 1, s. 96; 1993, c. 19, s. 79; 1997, c. 3, s. 45; 1997, c. 85, s. 208; 1999, c. 83, s. 273.

965.6.0.5. The adjusted cost to an individual, an investment group or an investment fund of a qualifying non-guaranteed convertible security issued by a corporation whose assets are under $350,000,000 is obtained by multiplying the cost of the security to the individual, investment group or investment fund, as the case may be, determined without reference to the borrowing costs, subscription or custody fees or other similar costs related to the security, by 50%.

1992, c. 1, s. 97; 1997, c. 3, s. 71; 1999, c. 83, s. 128; 2000, c. 39, s. 108.

CHAPTER II.1 
INVESTMENT GROUPS
1986, c. 15, s. 138.

965.6.1. An investment group is a group of individuals, other than trusts, formed solely to acquire qualifying shares, valid shares, convertible securities or qualifying non-guaranteed convertible securities that files a written declaration with a dealer evidencing its existence and specifying the interest of each of the members in the investment group.

1986, c. 15, s. 138; 1989, c. 5, s. 166; 1990, c. 7, s. 92; 1992, c. 1, s. 98.

965.6.2. The interest of each member in an investment group shall be, throughout the existence of the investment group, the interest determined in the declaration filed with the dealer or, where such is the case, the interest determined in paragraph c of section 965.6.5 or in paragraph b of section 965.6.6.

1986, c. 15, s. 138.

965.6.3. In no case may the number of members in an investment group be increased or any of those members replaced.

Where a requirement of the first paragraph is not fulfilled, each share or non-guaranteed convertible security included in a stock savings plan under which the investment group is a beneficiary is deemed to be withdrawn from the plan immediately before the admission of a new member.

1986, c. 15, s. 138; 1992, c. 1, s. 99.

965.6.4. Where an individual withdraws from an investment group of which he is a member, he may elect to transfer into a stock savings plan under which he is a beneficiary a share and, if any, a non-guaranteed convertible security that are included in a stock savings plan under which the investment group is a beneficiary and that are allotted to him in respect of his withdrawal if the requirement of paragraph g of section 965.7 is fulfilled in respect of that share and that non-guaranteed convertible security immediately before his withdrawal.

The election provided for in the first paragraph is made by transmitting a written notice to that effect to the dealer with which the investment group entered into an arrangement provided for in section 965.2.

1986, c. 15, s. 138; 1992, c. 1, s. 100.

965.6.5. Where, during a taxation year, an individual withdraws from an investment group of which he is a member, the following rules apply:

 (a) the individual who leaves the investment group is deemed, at that time, to have withdrawn from a stock savings plan under which he is a beneficiary,

(i)  a share at an adjusted cost equal to the amount of his interest in the adjusted cost of the shares included at the time of his withdrawal in a stock savings plan under which the investment group is a beneficiary;

(ii)  a non-guaranteed convertible security at an adjusted cost equal to the amount of his interest in the adjusted cost of the non-guaranteed convertible securities included at the time of his withdrawal in a stock savings plan under which the investment group is a beneficiary;

 (b) an individual who remains a member of the investment group after the withdrawal of the member is deemed to have included, at the time of the withdrawal, in a stock savings plan under which he is a beneficiary,

(i)  a share at an adjusted cost equal to the amount determined under subparagraph i of paragraph a in respect of the member, proportionate to his interest in the investment group immediately after the withdrawal of the member;

(ii)  a non-guaranteed convertible security at an adjusted cost equal to the amount determined under subparagraph ii of paragraph a in respect of the member, proportionate to his interest in the investment group immediately after the withdrawal of the member;

 (c) the interest in the investment group of an individual who remains a member of the investment group is deemed, immediately after the withdrawal of the member, to be proportionate to the ratio between his interest in the investment group immediately before the withdrawal of the member, and the aggregate of the interests in the investment group, immediately before that withdrawal, of the remaining members;

 (d) where the individual who withdraws from the investment group makes an election in accordance with section 965.6.4, the following rules apply:

(i)  the amount determined under

(1)  subparagraph i of paragraph a in respect of the individual is deemed to be reduced by an amount equal to the adjusted cost to the investment group of the share so transferred;

(2)  subparagraph ii of paragraph a in respect of the individual is deemed to be reduced by an amount equal to the adjusted cost to the investment group of the non-guaranteed convertible security so transferred;

(ii)  paragraph b applies without taking subparagraph i into account;

(iii)  the individual is deemed to have included, where such is the case, in a stock savings plan under which he is a beneficiary,

(1)  a share at an adjusted cost equal to the amount by which the adjusted cost to the investment group of the aggregate of the shares so transferred exceeds the amount determined under subparagraph i of paragraph a in respect of the individual, disregarding subparagraph i;

(2)  a non-guaranteed convertible security at an adjusted cost equal to the amount by which the adjusted cost to the investment group of the aggregate of the non-guaranteed convertible securities so transferred exceeds the amount determined under subparagraph ii of paragraph a in respect of the individual, disregarding subparagraph i;

(iv)  the adjusted cost to the individual of a share or of a non-guaranteed convertible security so transferred is equal to the adjusted cost to the investment group of the share or the non-guaranteed convertible security, as the case may be.

1986, c. 15, s. 138; 1992, c. 1, s. 101.

965.6.6. Where during a taxation year an individual who is a member of an investment group dies, the following rules apply:

 (a) an individual who remains a member of the investment group after the death of the individual is deemed to have included, at the time of the death, in a stock savings plan under which he is a beneficiary,

(i)  a share at an adjusted cost equal to the amount of the interest of the deceased member in the adjusted cost of the shares included, at the time of the death, in the stock savings plan under which the investment group is a beneficiary, proportionate to his interest in the investment group immediately after the death;

(ii)  a non-guaranteed convertible security at an adjusted cost equal to the amount of the interest of the deceased member in the adjusted cost of the non-guaranteed convertible securities included, at the time of the death, in the stock savings plan under which the investment group is a beneficiary, proportionate to his interest in the investment group immediately after the death;

 (b) the interest in the investment group of an individual who remains a member of the investment group is deemed, immediately after the member's death, to be proportionate to the ratio between his interest in the investment group immediately before the death and the aggregate of the interests in the investment group, immediately before the death, of the members other than the deceased.

1986, c. 15, s. 138; 1992, c. 1, s. 102.

965.6.7. Where during a taxation year an investment group is dissolved, the rules provided in paragraph a and subparagraphs i, iii and iv of paragraph d of section 965.6.5 apply, with the necessary modifications, to each individual who was a member of the investment group immediately before its dissolution.

1986, c. 15, s. 138; 1995, c. 63, s. 261.

CHAPTER II.2 
STOCK OWNERSHIP PLAN
1987, c. 21, s. 47.

965.6.8. A stock ownership plan is a plan which is instituted by a qualified corporation other than a corporation described in section 965.11.7.1 to enable only its eligible employees to acquire qualifying shares of its capital stock as part of a public share issue and which meets the requirements of this chapter.

1987, c. 21, s. 47; 1988, c. 4, s. 88; 1997, c. 3, s. 71.

965.6.9. The expression eligible employee of a corporation means any individual resident in Québec who is an employee of the corporation or of a subsidiary not less than 90% of the shares of the issued capital stock of which having full voting rights under all circumstances are owned directly or indirectly by the corporation and who, immediately before the acquisition of the shares, holds directly, indirectly or with related persons who are not employees of the corporation or of such a subsidiary, less than 5% of the shares of the issued capital stock of the corporation.

1987, c. 21, s. 47; 1997, c. 3, s. 71; 2004, c. 21, s. 225.

965.6.10. An eligible employee of a holding company which is a subsidiary of an insurer within the meaning of paragraph a of section 1 of the Act respecting insurance (chapter A-32) also means any individual resident in Québec who is an employee of a mutual insurance company, within the meaning of paragraph c of section 1 of the Act respecting insurance or a mutual general insurance company incorporated under a special Act of Québec, which owns, directly or indirectly, not less than 90% of the shares of the issued capital stock of the corporation having full voting rights under all circumstances, and who, immediately before the acquisition of the shares of the corporation, holds directly, indirectly or with related persons who are not employees of the corporation or of such a company, less than 5% of the shares of the capital stock of the corporation.

1987, c. 21, s. 47; 1990, c. 7, s. 93; 1995, c. 63, s. 102; 1997, c. 3, s. 71; 2002, c. 70, s. 185; 2004, c. 21, s. 225.

965.6.10.1. A stock ownership plan may provide that an eligible employee of a corporation also designates any individual resident in Québec who is an employee of a subsidiary more than 50% of the shares of the issued capital stock of which having full voting rights under all circumstances are owned directly or indirectly by the corporation, or of a company referred to in section 965.6.10 which owns, directly or indirectly, more than 50% of the shares of the issued capital stock of the corporation having full voting rights under all circumstances and who, immediately before the acquisition of the shares, holds directly, indirectly or with related persons who are not employees of the corporation or of such a subsidiary or company, less than 5% of the shares of the issued capital stock of the corporation.

1990, c. 7, s. 94; 1997, c. 3, s. 71; 2004, c. 21, s. 225.

965.6.11. A stock ownership plan may provide that an individual is not an eligible employee of a corporation if, at the time of acquisition of the shares of the corporation, the individual cannot prove three consecutive months of service with the corporation, with a subsidiary referred to in section 965.6.9, with a company referred to in section 965.6.10 or with a subsidiary or company referred to in section 965.6.10.1 where the stock ownership plan provides that the employees of such a subsidiary or company are eligible employees.

1987, c. 21, s. 47; 1990, c. 7, s. 95; 1995, c. 1, s. 99; 1997, c. 3, s. 71.

965.6.12. A stock ownership plan may set a maximum limit to the number of qualifying shares that may be acquired thereunder, provided the number is determined by means of the same formula for all eligible employees.

1987, c. 21, s. 47.

965.6.13. In no case may a stock ownership plan require each eligible employee to acquire a minimum number of qualifying shares under the plan.

1987, c. 21, s. 47.

965.6.14. Every stock ownership plan shall provide the identical formula for all eligible employees for the determination of the purchase price of each qualifying share that may be acquired under the plan.

1987, c. 21, s. 47.

965.6.15. Every stock ownership plan shall provide eligible employees with means for financing the acquisition of qualifying shares under the plan, as provided for in section 965.6.16, which shall be identical for all eligible employees, up to the amount of the acquisition.

Where the acquisition of qualifying shares may be made on a continuous basis at least once a year during the term of the plan, the plan may, instead of providing eligible employees with means of financing, or in addition thereto, according to the terms and conditions prescribed in section 965.6.17 and identical for all eligible employees, provide them with means to accumulate, by way of at-source deductions, the necessary savings for the acquisition of the qualifying shares they may acquire under the plan, up to the amount of the acquisition.

For the purposes of the first paragraph, the amount of financing provided may be less than the amount of the acquisition, to such extent as it is limited by a provision of an Act or as it is provided to complete the amount accumulated by means of at-source deductions for the acquisition of qualifying shares.

1987, c. 21, s. 47; 1988, c. 4, s. 89.

965.6.16. The means of financing provided under a stock ownership plan shall be an interest-free loan granted by the corporation, a loan granted by the corporation bearing interest at a rate not exceeding the market rate at the time of the loan or a loan from another person, provided the terms and conditions are negotiated by the corporation.

1987, c. 21, s. 47; 1997, c. 3, s. 71.

965.6.17. Every stock ownership plan shall provide the terms of repayment of a loan or at-source deductions, as the case may be, and the terms shall be favourable to the employees.

1987, c. 21, s. 47; 1988, c. 4, s. 90; 1992, c. 1, s. 103.

965.6.18. A stock ownership plan may provide clauses applicable in the event of an eligible employee's death, retirement, illness or layoff, the sale or transfer of shares acquired under the plan, an eligible employee's failure to repay his loan or any other situation that may compromise repayment of the loan or any subscription agreement entered into by an eligible employee.

1987, c. 21, s. 47; 1988, c. 4, s. 90.

965.6.19. In no case may a stock ownership plan provide for the purchase by anyone, or the transfer to or redemption by the issuing corporation, of the qualifying shares acquired under the plan.

1987, c. 21, s. 47; 1997, c. 3, s. 71.

965.6.20. Every stock ownership plan shall be managed by a dealer and shall provide that the certificate attesting to a qualifying share acquired under the plan shall be remitted to the dealer as provided in paragraph g of section 965.7.

1987, c. 21, s. 47.

CHAPTER II.3 
INVESTMENT FUND
1988, c. 4, s. 91.

965.6.21. An investment fund is an unincorporated mutual fund or a mutual fund within the meaning of the Securities Act (chapter V-1.1) which meets the requirements of this chapter.

1988, c. 4, s. 91; 1996, c. 39, s. 247.

965.6.22. An investment fund shall be established in Québec and the trustee or the administrator of an investment fund shall be resident in Canada and maintain an establishment in Québec.

1988, c. 4, s. 91; 1989, c. 5, s. 167.

965.6.23. When making, in any year, a public security issue consisting of securities that may be included in a stock savings plan, the investment fund shall stipulate in the final prospectus or in the application for an exemption from filing a prospectus relating to their issue that it agrees to meet the following requirements:

 (a) (subparagraph repealed);

 (b) to acquire, on or before 31 December in the year, qualifying shares or qualifying non-guaranteed convertible securities with the proceeds or expected proceeds, for the year, of the public security issue or, in the case of qualifying shares, as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the year by the investment fund with the proceeds or expected proceeds of the issue, whose adjusted cost is not less than the adjusted cost of the aggregate of all qualifying securities issued by the fund in the year and constituting valid qualifying securities; and

 (c) to be the owner, on 31 December in the year and in each of the ensuing two years, of qualifying shares, valid shares or qualifying non-guaranteed convertible securities, other than qualifying shares, valid shares or qualifying non-guaranteed convertible securities that have already been used in respect of the same year for the purposes of this paragraph, and whose adjusted cost is not less than the adjusted cost of the aggregate of all qualifying securities issued by the fund in the year and not redeemed by the investment fund respectively on 31 December in the year, 31 December in the first year following the year or 31 December in the second year following the year, as the case may be.

For the purposes of subparagraph b of the first paragraph and section 965.6.23.0.1, the expected proceeds of a public security issue made by an investment fund for a year are the proceeds of such a public security issue or a portion of such proceeds, as the case may be, to the extent that the following conditions are satisfied:

 (a) the public security issue ends on or before 31 December of that year; and

 (b) the proceeds or the portion of the proceeds is used to compensate or repay the acquisition cost of qualifying shares or qualifying non-guaranteed convertible securities acquired by the investment fund at a particular time during the 90-day period that precedes the date on which the public security issue ends.

1988, c. 4, s. 91; 1989, c. 5, s. 168; 1990, c. 7, s. 96; 1992, c. 1, s. 104; 1993, c. 19, s. 80; 1997, c. 85, s. 209; 1999, c. 83, s. 273; 2005, c. 23, s. 128.

965.6.23.0.1. An investment fund that intends to make a public security issue after 31 December 2001 and to acquire qualifying shares or qualifying non-guaranteed convertible securities with the expected proceeds of the public security issue shall stipulate in the final prospectus or in the application for an exemption from filing a prospectus relating to the issue that it undertakes to satisfy the conditions set out in subparagraphs a and b of the second paragraph of section 965.6.23.

2005, c. 23, s. 129.

965.6.23.1. An investment fund that makes, in any particular year, a public security issue consisting of securities that may be included in a stock savings plan and is making, since its creation, its first such public security issue may, instead of stipulating in the final prospectus or in the application for an exemption from filing a prospectus relating to their issue that it undertakes to meet the requirements set out in section 965.6.23, elect to stipulate therein that it undertakes to meet the following requirements or may, once it has stipulated that it undertakes to meet the requirements set out in the said section 965.6.23, elect instead to undertake to meet the following requirements by sending to the Minister and to the Autorité des marchés financiers a written notice to that effect on or before 31 December in the year in which the receipt for the final prospectus or the exemption from filing a prospectus relating to their issue was obtained:

 (a) to use a determined percentage, which must be the same throughout any particular year during which securities are issued as part of the security issue, not lower than 50%, of the proceeds, for the particular year, of the issue of securities not redeemed by the investment fund on or before 31 December in the particular year, to acquire, on or before 31 December in the year following the particular year, qualifying non-guaranteed convertible securities, or qualifying shares that are common shares with voting rights, that are issued by growth corporations;

 (a.1) to cause the portion, expressed as a percentage, as is represented by the ratio between the adjusted cost and the cost, determined without taking into account the borrowing costs, brokerage or custody fees or other similar costs, to the investment fund, of the aggregate of all qualifying shares and all qualifying non-guaranteed convertible securities described in paragraph a that the fund has undertaken to acquire in accordance with the said paragraph a on or before 31 December in the year following the particular year, to be equal to or greater than the determined percentage, not lower than 50%, indicated in that respect by the investment fund, in respect of the public security issue, in the final prospectus or the application for an exemption from filing a prospectus relating to the issue or in the written notice to be sent by the investment fund to the Minister and to the Autorité des marchés financiers, as the case may be;

 (b) to acquire, on or before 31 December in the particular year, qualifying shares or qualifying non-guaranteed convertible securities with the proceeds, for the particular year, of the public security issue or, in the case of qualifying shares, as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the particular year by the investment fund with the proceeds of the issue, that are not the subject of the undertaking under paragraph a and are not qualifying shares or qualifying non-guaranteed convertible securities having already been used, in respect of the particular year, for the purposes of paragraph c, and whose adjusted cost is not less than the amount by which the adjusted cost of the aggregate of all qualifying securities issued by the investment fund during the particular year and constituting valid qualifying securities exceeds the particular amount equal to the lesser of the proceeds of the issue of securities constituting, for the particular year, valid qualifying securities and the amount obtained by applying to the portion, that is the subject of the undertaking under paragraph a, of the proceeds, for the particular year, of the public security issue, the percentage determined under paragraph a.1 in respect of the public security issue;

 (c) to acquire, on or before 31 December in the year following the particular year, qualifying shares or qualifying non-guaranteed convertible securities described in paragraph a with the proceeds, for the particular year, of the public security issue or, in the case of qualifying shares, as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the particular year or in the year following the particular year by the investment fund with the proceeds of the issue, other than any such qualifying shares or any such qualifying non-guaranteed convertible securities having already been used, in respect of the particular year, for the purposes of paragraph b, and whose adjusted cost is not less than the particular amount referred to in paragraph b in respect of the particular year;

 (d) to be the owner, on 31 December in the particular year and in each of the ensuing two years, of qualifying non-guaranteed convertible securities or shares that are qualifying shares or valid shares, other than qualifying non-guaranteed convertible securities, qualifying shares or valid shares having already been used, in respect of the same year, for the purposes of paragraph e or of this paragraph or than a qualifying non-guaranteed convertible security or qualifying share referred to in section 965.6.0.4 in respect of the year, and whose adjusted cost is not less than the amount by which the adjusted cost of the aggregate of all qualifying securities issued in the particular year by the investment fund and not redeemed by the investment fund on 31 December in the particular year, 31 December in the first year following the particular year or 31 December in the second year following the particular year, respectively, as the case may be, exceeds the particular amount referred to in paragraph b in respect of the particular year;

 (e) to be the owner, on 31 December in each of the three years following the particular year, of qualifying non-guaranteed convertible securities or shares that are qualifying shares or valid shares, other than qualifying non-guaranteed convertible securities, qualifying shares or valid shares having already been used, in respect of the same year, for the purposes of this paragraph or than a qualifying non-guaranteed convertible security or qualifying share referred to in section 965.6.0.4 in respect of the year, and whose adjusted cost is not less than the particular amount referred to in paragraph b in respect of the particular year.

1991, c. 8, s. 62; 1992, c. 1, s. 105; 1993, c. 19, s. 81; 1997, c. 3, s. 71; 1997, c. 85, s. 210; 1999, c. 83, s. 273; 2002, c. 45, s. 521; 2003, c. 9, s. 133; 2004, c. 37, s. 90.

965.6.24. Where an investment fund stipulates, in a final prospectus or in an application for an exemption from filing a prospectus relating to a public security issue, the percentage to be used for the purposes of paragraph a of section 965.6.0.3, it shall also stipulate the portion of the adjusted cost of the qualifying security to be considered as the portion that may reasonably be allocated to the purchase of qualifying shares referred to in paragraphs a.3, c, c.4 and c.6 of section 965.6.

1988, c. 4, s. 91; 1989, c. 5, s. 169.

CHAPTER III 
QUALIFYING SHARES
1979, c. 14, s. 4; 1983, c. 44, s. 37.

965.7. A share qualifies for a stock savings plan if the following conditions are satisfied:

 (a) it is a common share which carries voting rights and those voting rights may be exercised under any circumstances in the issuing corporation;

 (b) the number of voting rights attached thereto is equal to or greater than that attached to any other share of the capital stock of the issuing corporation;

 (c) it cannot, under the conditions pertaining to its issue, be redeemed by the issuing corporation or purchased by anyone in whole or in part, directly or indirectly, in any manner whatever, or be the subject of a transaction that would result either in rendering such a share, a share substituted for such a share or a share received as a result of a transaction referred to in section 301, 536, 541 or 544 in respect of any such share or substituted share, redeemable by the issuing corporation or purchasable by anyone, in whole or in part, directly or indirectly in any manner whatever or in transferring property of the corporation other than a dividend to the shareholder;

 (c.0.1) it cannot, under the conditions pertaining to its issue, entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

 (c.1) (paragraph replaced);

 (d) it is issued by a qualified corporation which states, in the final prospectus or the application for exemption from filing a prospectus, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

 (d.1) where its investment is made in accordance with a receipt from the Autorité des marchés financiers, it was the subject, before the issue of the receipt, of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title;

 (e) it is acquired for money consideration within the scope of a public share issue by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary or as firm underwriter;

 (f) it is subscribed and paid; and

 (g) the certificate attesting to it is either remitted directly to the dealer contemplated in section 965.2 either by the issuer of the certificate or by another dealer who certifies that the certificate was held, without interruption from its issue, by a dealer acting as intermediary or as firm underwriter or issued and registered in the dealer's name or in the name of a person designated by him;

 (h) (paragraph repealed).

1979, c. 14, s. 4; 1983, c. 44, s. 37; 1984, c. 15, s. 215; 1985, c. 25, s. 139; 1986, c. 15, s. 139; 1987, c. 21, s. 48; 1988, c. 4, s. 92; 1997, c. 3, s. 71; 1997, c. 14, s. 160; 2002, c. 45, s. 521; 2003, c. 9, s. 134; 2004, c. 37, s. 90.

965.7.1. For the purposes of paragraph c of section 965.7, a share that would be a qualifying share if the conditions pertaining to its issue did not contain a stipulation to the effect that it is purchasable or redeemable is a qualifying share if the sole purpose of the stipulation is to meet the requirements of an Act or the regulations governing a sector of activities.

1987, c. 21, s. 49.

965.7.2. The condition provided in paragraph d.1 of section 965.7 does not apply in respect of a share distributed by means of a simplified prospectus.

1993, c. 19, s. 82.

965.8. (Repealed).

1979, c. 14, s. 4; 1983, c. 44, s. 37; 1990, c. 7, s. 97.

965.9. (Repealed).

1979, c. 14, s. 4; 1983, c. 44, s. 37; 1984, c. 15, s. 216; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 2003, c. 9, s. 135.

965.9.1. (Repealed).

1980, c. 13, s. 95; 1983, c. 44, s. 37; 1984, c. 15, s. 217; 1988, c. 4, s. 93; 1989, c. 5, s. 170; 1990, c. 7, s. 98; 1992, c. 1, s. 106; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 2003, c. 9, s. 135.

965.9.1.0.0.1. A share also qualifies for a stock savings plan if it meets the requirements of paragraphs c to g of section 965.7 and is a common share with voting rights.

1992, c. 1, s. 107.

965.9.1.0.1. A share also qualifies for a stock savings plan if

 (a) it is a common share with voting rights;

 (b) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a convertible security issued as part of a convertible security issue;

 (c) it is issued by a qualified corporation whose assets are less than $350,000,000 on the date of the receipt for the final prospectus or of the exemption from filing a prospectus in respect of the issue of convertible securities referred to in paragraph b;

 (d) it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

 (e) it is issued by a qualified corporation which states, in the final prospectus or in the application for exemption from filing a prospectus in respect of the issue of convertible securities referred to in paragraph b, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title; and

 (f) before the issue of the receipt for the final prospectus or of the exemption from filing a prospectus in respect of the issue of convertible securities referred to in paragraph b, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1990, c. 7, s. 99; 1992, c. 1, s. 108; 1997, c. 3, s. 71; 1999, c. 83, s. 129; 2000, c. 39, s. 109; 2003, c. 9, s. 136; 2006, c. 13, s. 72.

965.9.1.0.2. A share also qualifies for a stock savings plan if

 (a) it is a common share with voting rights;

 (b) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a convertible security issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for a convertible security which was outstanding at the time of such transaction and which, were it not for such replacement, could have been converted into a qualifying share described in section 965.9.1.0.1, or in replacement for such a convertible security which had been issued in substitution for a convertible security which, were it not for such substitution, could have been converted into a qualifying share described in this section;

 (c) it is issued by a qualified corporation whose assets are less than $350,000,000 on the date of the transaction referred to in paragraph b;

 (d) it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

 (e) it is issued by a qualified corporation which states, in the final prospectus or in the application for exemption from filing a prospectus in respect of the replacement of a convertible security referred to in paragraph b, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

 (f) it is a share of a class of the capital stock of a qualified corporation having shares of the same class of its capital stock which, immediately after the transaction referred to in paragraph b, are listed on a Canadian stock exchange; and

 (g) before the transaction referred to in paragraph b, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1990, c. 7, s. 99; 1992, c. 1, s. 109; 1997, c. 3, s. 71; 1999, c. 83, s. 130; 1999, c. 83, s. 273; 2000, c. 39, s. 110; 2001, c. 7, s. 169; 2003, c. 9, s. 137; 2006, c. 13, s. 73.

965.9.1.0.3. A share also qualifies for a stock savings plan if

 (a) it is a common share with voting rights issued by a growth corporation;

 (b) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a qualifying non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue;

 (c) it meets the requirements of paragraphs a to c of section 965.9.8.2; and

 (d) the issuing corporation states, in the final prospectus relating to the non-guaranteed convertible security issue mentioned in paragraph b, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title.

1997, c. 85, s. 211; 2006, c. 13, s. 74.

965.9.1.0.4. A share also qualifies for a stock savings plan if

 (a) it is a common share with voting rights issued by a growth corporation;

 (b) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a particular qualifying non-guaranteed convertible security issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for a qualifying non-guaranteed convertible security which was outstanding at the time of such transaction and which, were it not for such replacement, could have been converted into a qualifying share described in section 965.9.1.0.3, or in replacement for such a qualifying non-guaranteed convertible security which had been issued in substitution for a non-guaranteed convertible security which, were it not for such substitution, could have been converted into a qualifying share described in this section;

 (c) it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

 (d) under the conditions pertaining to the issue of the particular qualifying non-guaranteed convertible security, the share cannot

(i)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(ii)  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

(iii)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

 (e) the growth corporation states, in the final prospectus in respect of the replacement of the particular qualifying non-guaranteed convertible security, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

 (f) it is a share of a class of the capital stock of the growth corporation having shares of the same class of its capital stock which, immediately after the transaction referred to in paragraph b, are listed on a Canadian stock exchange; and

 (g) before the transaction referred to in paragraph b, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1997, c. 85, s. 211; 1999, c. 83, s. 273; 2001, c. 7, s. 169; 2006, c. 13, s. 75.

965.9.1.0.4.1. A share issued by a corporation described in section 965.11.7.1 also qualifies for a stock savings plan if

 (a) it is a common share which, in comparison with all other common shares with voting rights of the capital stock of the issuing corporation, carries voting rights in a ratio of at least one to ten; and

 (b) it meets the requirements of paragraphs c to f of section 965.7 where its acquirer is an investment fund, and the requirements of paragraphs c to g of section 965.7 where its acquirer is an individual or an investment group.

1999, c. 83, s. 131.

965.9.1.0.4.2. A share also qualifies for a stock savings plan if it is issued by a corporation described in section 965.11.7.1 and is either

 (a) a common share described in section 965.9.1.0.4.1 which

(i)  is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a preferred share that met the requirements of paragraph b,

(ii)  under the conditions pertaining to the issue of the preferred share referred to in subparagraph i, cannot

(1)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(2)  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in relation to any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

(3)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation,

(iii)  is the subject of a statement by the issuing corporation, in the final prospectus or the application for an exemption from filing a prospectus relating to the public share issue as part of which the preferred share referred to in subparagraph i was issued, to the effect that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title,

(iv)  before the receipt for the final prospectus or the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iii was obtained, was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title, and

(v)  is

(1)  on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iii, a share of a class listed on a Canadian stock exchange, or

(2)  a share of a class none of the shares of which, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iii, has been issued but in respect of which the issuing corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the issuing corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; or

 (b) a preferred share that is a non-guaranteed preferred share issued as part of a public share issue by the corporation which

(i)  subject to section 965.9.1.0.8, meets the requirements of paragraphs c to f of section 965.7 where its acquirer is an investment fund, and the requirements of paragraphs c to g of section 965.7 where its acquirer is an individual or an investment group,

(ii)  is convertible into a common share meeting the requirements of paragraph a, and

(iii)  is of a separate class relating to the public share issue.

1999, c. 83, s. 131; 2001, c. 7, s. 169; 2006, c. 13, s. 76.

965.9.1.0.4.3. A share described in section 965.9.1.0.4.1 and issued by a corporation described in section 965.11.7.1 also qualifies for a stock savings plan if

 (a) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a particular preferred share meeting the requirements of paragraph b of section 965.9.1.0.4.2 and issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for such a preferred share which was outstanding at the time of such transaction or in replacement for such a preferred share which had been issued in substitution for a preferred share which, were it not for such substitution, could have been converted into a qualifying share described in this section;

 (b) under the conditions pertaining to the issue of the particular preferred share, it cannot

(i)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(ii)  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in relation to any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

(iii)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

 (c) the issuing corporation states, in the final prospectus or the application for an exemption from filing a prospectus relating to the replacement of the particular preferred share, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

 (d) it is

(i)  a share of a class of the capital stock of the corporation having shares of the same class which, immediately after the transaction mentioned in paragraph a, are listed on a Canadian stock exchange, or

(ii)  a share of a class of the capital stock of the corporation none of the shares of which, immediately after the transaction mentioned in paragraph a, is listed on a Canadian stock exchange but in respect of which the corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus relating to the replacement of the particular preferred share, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; and

 (e) before the transaction mentioned in paragraph a, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1999, c. 83, s. 131; 2001, c. 7, s. 169; 2006, c. 13, s. 77.

965.9.1.0.5. A share also qualifies for a stock savings plan if it is issued by a corporation described in section 965.11.7.1 and is either

 (a) a common share with voting rights which

(i)  is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a preferred share that met the requirements of paragraph b,

(ii)  meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group,

(iii)  under the conditions pertaining to the issue of the preferred share referred to in subparagraph i, cannot

(1)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(2)  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

(3)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation,

(iv)  is the subject of a statement by the issuing corporation, in the final prospectus or the application for an exemption from filing a prospectus relating to the public share issue as part of which the preferred share referred to in subparagraph i was issued, to the effect that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title,

(v)  before the receipt for the final prospectus or the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv has been obtained, was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title, and

(vi)  is

(1)  on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, a share of a class listed on a Canadian stock exchange, or

(2)  a share of a class none of the shares of which, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, has been issued but in respect of which the issuing corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the issuing corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; or

 (b) a preferred share that is a non-guaranteed preferred share issued as part of a public share issue by the corporation which

(i)  subject to section 965.9.1.0.8, would meet the requirements of paragraphs c to f of section 965.7, where its acquirer is an investment fund, and the requirements of paragraphs c to g of the said section 965.7, where its acquirer is an individual or an investment group,

(ii)  is convertible into a common share with voting rights meeting the requirements of paragraph a, and

(iii)  is of a separate class relating to the public share issue.

1997, c. 85, s. 211; 1999, c. 83, s. 132; 2001, c. 7, s. 169; 2006, c. 13, s. 78.

965.9.1.0.6. A common share with voting rights issued by a corporation described in section 965.11.7.1 also qualifies for a stock savings plan if

 (a) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a particular preferred share meeting the requirements of paragraph b of section 965.9.1.0.5 and issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for such a preferred share which was outstanding at the time of such transaction or in replacement for such a preferred share which had been issued in substitution for a preferred share which, were it not for such substitution, could have been converted into a qualifying share described in this section;

 (b) it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

 (c) under the conditions pertaining to the issue of the particular preferred share, the share cannot

(i)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(ii)  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

(iii)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

 (d) the issuing corporation states, in the final prospectus or the application for an exemption from filing a prospectus in respect of the replacement of the particular preferred share, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

 (e) it is

(i)  a share of a class of the capital stock of the corporation having shares of the same class which, immediately after the transaction mentioned in paragraph a, are listed on a Canadian stock exchange, or

(ii)  a share of a class of the capital stock of the corporation none of the shares of which, immediately after the transaction mentioned in paragraph a, is listed on a Canadian stock exchange but in respect of which the corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus relating to the replacement of the particular preferred share, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; and

 (f) before the transaction referred to in paragraph a, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1997, c. 85, s. 211; 1999, c. 83, s. 133; 2001, c. 7, s. 169; 2006, c. 13, s. 79.

965.9.1.0.7. For the purposes of subparagraph i of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 where that subparagraph refers to paragraph c of section 965.7, a preferred share that would, were it not for this section, be a qualifying share by reason of the fact that it would meet the requirements of the said paragraph b if the conditions pertaining to its issue did not contain, except in the case provided for in section 965.9.1.0.8, a stipulation to the effect that it is purchasable or redeemable, is deemed to be a qualifying preferred share if the sole purpose of the stipulation is to meet the requirements of an Act or the regulations governing a sector of activity.

1997, c. 85, s. 211; 1999, c. 83, s. 273.

965.9.1.0.8. Notwithstanding subparagraph i of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 where that subparagraph refers to paragraph c of section 965.7, a preferred share issued as part of a public share issue by a corporation described in section 965.11.7.1 may, under the conditions pertaining to its issue, be, within a period of 1,825 days commencing on the date that is 1,825 days after the date of its issue, redeemed or repaid by the issuing corporation or purchased by anyone, in any manner whatever, directly or indirectly, for any amount not less than the par value of the security.

1997, c. 85, s. 211; 1999, c. 83, s. 273.

965.9.1.1. A share also qualifies for a stock savings plan if

 (a) it is acquired by an investment fund in a distribution of shares for which an exemption from filing a prospectus is provided under section 51 of the Securities Act (chapter V-1.1);

 (b) without reference to paragraphs d, d.1, e and g of section 965.7, the share would be a qualifying share; and

 (c) (paragraph repealed);

 (d) it is issued by a qualified corporation having common shares of its capital stock carrying voting rights that were listed on a Canadian stock exchange after 5 July 1973, or that were or are, after that date, the object of a distribution under the conditions provided for in subparagraph 1 of the second paragraph of section 68 of the Securities Act or in subparagraph 1 of the first paragraph of section 338 of the said Act or, after the same date, that were distributed in accordance with an authorization granted by the Régie de l'électricité et du gaz before 22 June 1979.

1988, c. 4, s. 94; 1990, c. 7, s. 100; 1993, c. 64, s. 105; 1997, c. 3, s. 71; 1999, c. 83, s. 134; 2001, c. 7, s. 169.

965.9.2. (Repealed).

1980, c. 13, s. 95; 1983, c. 44, s. 37; 1984, c. 15, s. 217; 1990, c. 7, s. 101; 1997, c. 3, s. 71; 2003, c. 9, s. 138.

965.9.3. (Repealed).

1980, c. 13, s. 95; 1983, c. 44, s. 37; 1984, c. 15, s. 217; 1988, c. 4, s. 95; 2003, c. 9, s. 138.

965.9.4. Notwithstanding sections 965.9.1.0.0.1 to 965.9.1.1, where the use, as stated in the final prospectus or the application for exemption from filing a prospectus or as may be inferred therefrom, of the major portion of the proceeds of a public share issue or of a convertible security issue is the direct or indirect payment for the acquisition of shares of another corporation or of any other negotiable instruments, a share acquired as part of the public share issue or following the exercise of a conversion right conferred on the holder of a convertible security acquired as part of the convertible security issue, as the case may be, is not a qualifying share except

 (a) where such shares or negotiable instruments are securities issued by a corporation whose name is disclosed in the final prospectus or in the application for an exemption from filing a prospectus if, immediately after the acquisition, the latter corporation is directly or indirectly a subsidiary controlled corporation of the issuing corporation whose activities or those of a subsidiary corporation it controls directly or indirectly have commercial possibilities directly linked with those of the issuing corporation or of another corporation associated therewith on the date of the receipt for the final prospectus or of the exemption from filing a prospectus and where one of the corporations other than such a subsidiary carries on a qualified business; or

 (b) where such shares or negotiable instruments will be securities issued by a corporation whose name is not disclosed in the final prospectus or in the application for an exemption from filing a prospectus, if the issuing corporation or a corporation associated therewith carries on a qualified business and where the issuing corporation states expressly in the final prospectus or in the application for an exemption from filing a prospectus that such shares or negotiable instruments will be securities issued by a corporation which, immediately after the acquisition, will be directly or indirectly a subsidiary controlled corporation of the issuing corporation whose activities or those of a subsidiary corporation it controls directly or indirectly have commercial possibilities directly linked with the activities of the issuing corporation or those of another corporation associated therewith on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

1987, c. 21, s. 50; 1989, c. 5, s. 171; 1990, c. 7, s. 102; 1997, c. 3, s. 46; 2003, c. 9, s. 139.

965.9.5. For the purposes of section 965.9.4, where the use, as stated in the final prospectus or the application for exemption from filing a prospectus or as may be inferred therefrom, of part or all of the proceeds of a public share issue or of a convertible security issue is the repayment of borrowed money or any other debt, contracted within a reasonable period of time before or after the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or the redemption of shares or of any other securities issued within such period of time, for the payment of shares or any other negotiable instruments, the use of that part or all of the proceeds shall be deemed to be a payment for such an acquisition.

1987, c. 21, s. 50; 1990, c. 7, s. 103; 2005, c. 1, s. 203.

965.9.5.1. For the purposes of sections 965.9.4 and 965.9.5, where the use that is indicated in the final prospectus or in the application for an exemption from filing a prospectus or that is inferred therefrom as regards the whole or part of the proceeds of a public share issue or of a convertible security issue is the repayment of borrowed money or of any other debt contracted by a particular corporation within a reasonable time preceding or following the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or the redemption of shares or of any other security issued within such time, for the payment of shares or of any other negotiable instrument issued by another corporation, and the issuing corporation results from the amalgamation, within the meaning of section 544, of the particular corporation and of the other corporation, the issuing corporation must be deemed to be, immediately after the acquisition mentioned in section 965.9.4, the particular corporation.

1988, c. 4, s. 96; 1990, c. 7, s. 104; 1997, c. 3, s. 71; 2005, c. 1, s. 204.

965.9.6. For the purposes of sections 965.9.4 and 965.9.5, a share or a negotiable instrument does not include,

 (a) where the issuing corporation carries on the activities of a dealer within the meaning of the Securities Act (chapter V-1.1), such property held in inventory;

 (b) where the issuing corporation is a corporation referred to in section 965.11.1, such property issued by a corporation described in paragraph d of the said section in whose administration it participates.

1987, c. 21, s. 50; 1997, c. 3, s. 71; 1997, c. 14, s. 161.

965.9.7. Section 965.9.4 does not apply where the issuing corporation is

 (a) a bank;

 (b) a body governed by the Insurance Companies Act (Statutes of Canada, 1991, chapter 47) or by the Act respecting insurance (chapter A-32);

 (c) a corporation holding a licence or otherwise authorized by the laws of Canada or of a province to offer its services there as a trustee;

 (d) a corporation whose principal business is the lending of money or the purchasing of debts; or

 (e) a corporation referred to in section 965.11.7.1.

1987, c. 21, s. 50; 1988, c. 4, s. 97; 1988, c. 64, s. 587; 1990, c. 7, s. 105; 1993, c. 16, s. 309; 1993, c. 64, s. 106; 1997, c. 3, s. 71.

965.9.7.0.1. Notwithstanding sections 965.9.1.0.0.1 to 965.9.1.1, a qualifying share does not include a share issued in a particular year, under an exemption from filing a prospectus granted under any of subparagraphs 2, 3 and 5 of the first paragraph of section 52 of the Securities Act (chapter V-1.1), by a corporation that has certified, in accordance with the first paragraph of section 965.24.2, that on 30 June in the year preceding that particular year, it would not have been a qualified corporation by reason of the first paragraph of any of sections 965.11.11, 965.11.13 and 965.11.17 had that first paragraph applied on that date.

Notwithstanding the first paragraph, where, in a particular year mentioned in the first paragraph, the corporation makes a public share issue in respect of which it is stipulated that it can be the subject of a stock savings plan, or makes a convertible security issue which the holder may convert into a share in respect of which there is such a stipulation, the first paragraph does not apply to shares of the capital stock of the corporation which are issued under an exemption referred to in the first paragraph in the part of the particular year following the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue or the convertible security issue.

1990, c. 7, s. 106; 1992, c. 1, s. 110; 1997, c. 3, s. 71; 2003, c. 9, s. 140.

965.9.7.0.2. Section 965.9.7.0.1 does not apply to a share issued in a particular year by a corporation that has certified, in accordance with the first paragraph of section 965.24.2, that on 30 June in the year preceding that particular year, as a result of a transaction other than a particular transaction referred to in section 965.11.19.1 in respect of which the corporation was not bound to meet the requirement mentioned in the second paragraph of any of sections 965.11.11, 965.11.13 and 965.11.17, the corporation would not have been a qualified corporation by reason of the first paragraph of any of sections 965.11.11, 965.11.13 and 965.11.17 if that first paragraph had applied on that date and if, during the period beginning on 1 July in the year preceding the particular year and ending on 31 December in that year, the corporation met, with reference to section 965.11.19.1, the requirement mentioned in the second paragraph of any of sections 965.11.11, 965.11.13 and 965.11.17 in relation to that transaction, and transmitted to the Autorité des marchés financiers and to the Minister, on or before 31 December in the year preceding the particular year, a written notice certifying that it had met that requirement.

1990, c. 7, s. 106; 1992, c. 1, s. 111; 1997, c. 3, s. 71; 2002, c. 45, s. 521; 2003, c. 9, s. 141; 2004, c. 37, s. 90.

965.9.7.0.3. (Repealed).

1992, c. 1, s. 112; 1993, c. 64, s. 107; 1997, c. 3, s. 71; 2003, c. 9, s. 142.

965.9.7.0.4. (Repealed).

1992, c. 1, s. 112; 1997, c. 3, s. 71; 2003, c. 9, s. 142.

965.9.7.0.5. (Repealed).

1993, c. 64, s. 108; 1997, c. 3, s. 71; 2003, c. 9, s. 142.

965.9.7.0.6. (Repealed).

1993, c. 64, s. 108; 1997, c. 3, s. 71; 2003, c. 9, s. 142.

CHAPTER III.1 
VALID SHARES
1989, c. 5, s. 172.

965.9.7.1. A share of a class of the capital stock of a corporation is a valid share if

 (a) it is acquired through a transaction on a stock exchange during a trading session;

 (b) at the time of its acquisition, it is listed on a Canadian stock exchange;

 (c) on the date of its acquisition, the class of shares of the capital stock of the corporation to which the share belongs is included in the list of the Autorité des marchés financiers; and

 (d) as part of its acquisition, the certificate attesting to it is given to the dealer referred to in section 965.2 or issued and registered in the dealer's name or in the name of a person designated by him.

1989, c. 5, s. 172; 1997, c. 3, s. 71; 1999, c. 83, s. 273; 2001, c. 7, s. 169; 2002, c. 45, s. 521; 2004, c. 37, s. 90.

965.9.7.2. A share of a class of the capital stock of a corporation is also a valid share if

 (a) it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary or as firm underwriter;

 (b) at the time of its acquisition, it is listed on a Canadian stock exchange;

 (c) it is issued by the corporation as part of a share issue referred to in the second paragraph of any of sections 965.11.11, 965.11.13 and 965.11.17;

 (d) on the date of its acquisition, the class of shares of the capital stock of that corporation to which the share belongs is included in the list of the Autorité des marchés financiers; and

 (e) as part of its acquisition, the certificate attesting to it is given to the dealer referred to in section 965.2 or issued and registered in the dealer's name or in the name of a person designated by him.

1989, c. 5, s. 172; 1997, c. 3, s. 71; 1999, c. 83, s. 273; 2001, c. 7, s. 169; 2002, c. 45, s. 521; 2003, c. 9, s. 143; 2004, c. 37, s. 90.

965.9.7.3. For the purposes of this Title, the expression list of the Autorité des marchés financiers means the list published periodically by the Autorité des marchés financiers which contains the names of the corporations and the designation of those classes of shares of their capital stock which may constitute valid shares.

1989, c. 5, s. 172; 1997, c. 3, s. 71; 2002, c. 45, s. 521; 2004, c. 37, s. 90.

CHAPTER III.2 
QUALIFYING SECURITIES
1989, c. 5, s. 172.

965.9.8. A security also qualifies for a stock savings plan if

 (a) it is issued by an investment fund which states, in the final prospectus or in the application for an exemption from filing a prospectus relating to the issue of the security, that the security may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the security by this Title;

 (a.1) where issued by an investment fund that, in respect of its first public security issue consisting of securities that may be included in a stock savings plan, has made the election provided in section 965.6.23.1, it is a security issued as part of that first public security issue;

 (b) it is acquired for money consideration by an individual as first purchaser thereof, other than a dealer acting as an intermediary or as a firm underwriter;

 (c) before the issue of a receipt for a final prospectus or before the exemption from filing a prospectus relating to its issue, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title;

 (d) the certificate attesting to it is

(i)  kept, according to the terms of an arrangement provided for in the second paragraph of section 965.2, by the investment fund that issued the security, or

(ii)  given directly to the dealer referred to in the second paragraph of section 965.2 by the issuer of the certificate or by another dealer who certifies that it has been held continuously, since its issue, by a dealer acting as an intermediary or as a firm underwriter, or issued and registered in the name of the dealer or a person designated by the dealer.

1988, c. 4, s. 97; 1989, c. 5, s. 173; 1990, c. 7, s. 107; 1991, c. 8, s. 63; 1993, c. 19, s. 83; 1995, c. 1, s. 100.

CHAPTER III.3 
QUALIFYING NON-GUARANTEED CONVERTIBLE SECURITIES
1992, c. 1, s. 113.

965.9.8.1. A non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue also qualifies for a stock savings plan if

 (a) it is issued by a growth corporation and, before the issue of the receipt for the final prospectus relating to the non-guaranteed convertible security issue, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title;

 (b) it is issued by a growth corporation which states, in the final prospectus relating to the non-guaranteed convertible security issue, that the non-guaranteed convertible security issue may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the security by this Title;

 (c) it is acquired for money consideration by an individual, an investment group or an investment fund as first purchaser thereof, other than a dealer acting as an intermediary or as a firm underwriter;

 (d) it is subscribed and paid;

 (e) subject to section 965.9.8.4, it would meet the following requirements if paragraphs c, c.0.1 and g of section 965.7 applied, with the necessary modifications, to a non-guaranteed convertible security:

(i)  the requirements of paragraphs c and c.0.1 of the said section 965.7, where its acquirer is an investment fund; or

(ii)  the requirements of paragraphs c, c.0.1 and g of the said section 965.7, where its acquirer is an individual or an investment group;

 (f) it is convertible into a common share with voting rights meeting the requirements of section 965.9.8.2;

 (g) it is of a separate class relating to the issue of non-guaranteed convertible securities.

1992, c. 1, s. 113; 1993, c. 19, s. 84; 1993, c. 64, s. 109; 1995, c. 1, s. 101; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 1997, c. 14, s. 162; 1997, c. 85, s. 212.

965.9.8.2. The requirements referred to in paragraph f of section 965.9.8.1, in respect of a common share with voting rights which is to be issued by reason of the exercise of a conversion right conferred on the holder of a non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue are as follows:

 (a) the share meets the requirements of paragraphs c and c.0.1 of section 965.7, where the holder of the non-guaranteed convertible security is an investment fund, and the requirements of paragraphs c, c.0.1 and g of the said section 965.7, where the holder of the non-guaranteed convertible security is an individual or an investment group;

 (b) under the conditions pertaining to the issue of the non-guaranteed convertible security, the share cannot

(i)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, neither in whole nor in part;

(ii)  be the subject of a transaction that would result

(1)  in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part; or

(2)  in transferring property of the issuing corporation, other than a dividend, to the shareholder;

(iii)  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

 (c) the share is in a class listed on a Canadian stock exchange on the date of the receipt for the final prospectus relating to the issue of the non-guaranteed convertible security.

1992, c. 1, s. 113; 1997, c. 3, s. 71; 1999, c. 83, s. 135; 2001, c. 7, s. 169.

965.9.8.2.1. The condition provided in paragraph a of section 965.9.8.1 relating to the obtention of a favourable advance ruling from the Ministère du Revenu does not apply in respect of a non-guaranteed convertible security distributed by means of a simplified prospectus.

1993, c. 19, s. 85.

965.9.8.3. For the purposes of paragraph e of section 965.9.8.1 where that paragraph refers to paragraph c of section 965.7, a non-guaranteed convertible security that would otherwise be a qualifying non-guaranteed convertible security if the conditions pertaining to its issue did not contain, except in the case provided for in section 965.9.8.4, a stipulation to the effect that it is purchasable or redeemable is deemed to be a qualifying non-guaranteed convertible security if the sole purpose of the stipulation is to meet the requirements of an Act or the regulations governing a sector of activity.

1992, c. 1, s. 113.

965.9.8.4. Notwithstanding paragraph e of section 965.9.8.1 where that paragraph refers to paragraph c of section 965.7, a non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue may, under the conditions pertaining to its issue, be, within a period of 1,825 days commencing on the date that is 1,825 days after the date of its issue, redeemed or repaid by the issuing corporation or purchased by anyone, in any manner whatever, directly or indirectly, for any amount not less than the par value of the security.

1992, c. 1, s. 113; 1997, c. 3, s. 71.

965.9.8.5. Notwithstanding section 965.9.8.1, where the use, as stated in the final prospectus or as may be inferred therefrom, of the major portion of the proceeds of a non-guaranteed convertible security issue is the direct or indirect payment for the acquisition of shares of another corporation or of any other negotiable instruments, a non-guaranteed convertible security acquired as part of the non-guaranteed convertible security issue is not a qualifying non-guaranteed convertible security, except in the cases provided for in paragraphs a and b of section 965.9.4.

1992, c. 1, s. 113; 1997, c. 3, s. 71.

965.9.8.6. For the purposes of section 965.9.8.5, where the use, as stated in the final prospectus or as may be inferred therefrom, of part or all of the proceeds of a non-guaranteed convertible security issue is either the repayment of borrowed money, or of any other debt, contracted within a reasonable period of time before or after the date of the receipt for the final prospectus, or the redemption of shares or of any other securities issued within such period of time to pay for the acquisition of shares or of any other negotiable instruments, the use of that part or all of the proceeds of the issue is deemed to be a payment for such an acquisition.

1992, c. 1, s. 113; 2005, c. 1, s. 205.

965.9.8.7. For the purposes of sections 965.9.8.5 and 965.9.8.6, where the use, as stated in the final prospectus or as may be inferred therefrom, of part or all of the proceeds of a non-guaranteed convertible security issue is the repayment of borrowed money, or of any other debt, contracted by a particular corporation within a reasonable period of time before or after the date of the receipt for the final prospectus, or the redemption of shares or of any other securities issued by the particular corporation within such period of time to pay for the acquisition of shares or of any other negotiable instrument issued by another corporation, and the corporation having made the non-guaranteed convertible security issue results from the amalgamation, within the meaning of section 544, of the particular corporation and the other corporation, the corporation having made the issue shall be deemed to be, immediately after the acquisition mentioned in section 965.9.8.4, the particular corporation.

1992, c. 1, s. 113; 1997, c. 3, s. 71; 2005, c. 1, s. 206.

965.9.8.8. For the purposes of sections 965.9.8.5 and 965.9.8.6, a share or a negotiable instrument does not include such a share or such a negotiable instrument that is property referred to in paragraph a or b of section 965.9.6.

1992, c. 1, s. 113.

965.9.8.9. Section 965.9.8.5 does not apply where the corporation having made the qualifying non-guaranteed convertible security issue referred to therein is a corporation or body described in any of paragraphs a to e of section 965.9.7.

1992, c. 1, s. 113; 1997, c. 3, s. 71.

965.9.8.10. Notwithstanding section 965.9.8.1, a qualifying non-guaranteed convertible security does not include a non-guaranteed convertible security that is acquired after 31 December 1993 and that is issued by a corporation, other than a growth corporation, as part of a non-guaranteed convertible security issue in respect of which the receipt for the final prospectus was granted before 21 May 1993, or in respect of which the receipt for the preliminary prospectus was granted before 21 May 1993 and the receipt for the final prospectus was granted after 20 May 1993 but before 1 January 1994.

1993, c. 64, s. 110; 1995, c. 1, s. 102; 1997, c. 3, s. 71.

CHAPTER IV 
QUALIFIED CORPORATIONS
1979, c. 14, s. 4; 1983, c. 44, s. 37; 1997, c. 3, s. 71.

965.10. A corporation that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue is a qualified corporation if, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus,

 (a) it is a Canadian corporation;

 (a.1) its assets are under $350,000,000;

 (b) (paragraph repealed);

 (c) its central management is in Québec or it has a wage bill in respect of its employees, within the meaning of the regulations made pursuant to section 771, of which more than one-half was paid during its last taxation year ended before that date to employees of its establishment situated in Québec;

 (d) not more than 50% of the value of its property, as shown in its financial statements submitted to the shareholders for its last taxation year ended before that date, or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles, is constituted of shares, stocks, promissory notes, debentures, bonds, any other debt securities, guaranteed investment certificates, units of a mutual trust fund, units representing an undivided share in a project or property, subscription rights or purchasing rights to such shares that are not property described in section 965.11 or cash on hand or on deposit; and

 (e) it had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders

(i)  throughout the preceding 12 months, or

(ii)  throughout the preceding six months where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan, and

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange on that date.

1979, c. 14, s. 4; 1983, c. 44, s. 37; 1984, c. 35, s. 21; 1987, c. 21, s. 51; 1988, c. 4, s. 98; 1990, c. 7, s. 108; 1992, c. 1, s. 114; 1993, c. 64, s. 111; 1995, c. 63, s. 103; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1999, c. 83, s. 136; 2000, c. 39, s. 111; 2001, c. 7, s. 169; 2004, c. 21, s. 226.

965.10.1. For the purposes of paragraph d of section 965.10, the following rules apply:

 (a) (paragraph repealed);

 (b) in the case of a corporation in its first fiscal period, except in the case provided for in paragraph d, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or the exemption from filing a prospectus shall be replaced by a reference to its financial statements at the beginning of its first fiscal period;

 (c) in the case of a corporation having modified its usual and accepted fiscal period within the 365 days preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus otherwise than as a result of an amalgamation within the meaning of section 544, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or the exemption from filing a prospectus shall be replaced by a reference to its financial statements submitted to the shareholders for each of the taxation years ended within the 365 days preceding the date of the receipt for the final prospectus or the exemption from filing a prospectus;

 (d) in the case of a corporation resulting from an amalgamation within the meaning of section 544 within the 365 days preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus shall be replaced by a reference to its financial statements submitted to the shareholders at the beginning of its first fiscal period where the corporation is in its first fiscal period, or for each of the taxation years ended since the amalgamation in other cases, and to the financial statements submitted to the shareholders of the predecessor corporation referred to in section 965.10.2 for each of its taxation years ended within the 365 days preceding the time of amalgamation.

1984, c. 15, s. 218; 1984, c. 35, s. 24; 1986, c. 15, s. 140; 1987, c. 21, s. 52; 1995, c. 63, s. 104; 1997, c. 3, s. 71; 2003, c. 9, s. 144.

965.10.1.1. For the purposes of paragraph d of section 965.10, where the use, as indicated by a corporation in a final prospectus or an exemption from filing a prospectus or as may be inferred therefrom, of the major portion of the proceeds of a public share issue, convertible security issue or non-guaranteed convertible security issue is the financing of scientific research and experimental development carried on in Québec, the corporation may elect that the following rules apply:

 (a) the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus is replaced, where applicable, by a reference to its last interim financial statements, before that date, as audited and submitted to the shareholders;

 (a.1) paragraph d of the said section 965.10 shall be read without reference to “promissory notes, debentures, bonds, any other debt securities, guaranteed investment certificates,” and “or cash on hand or on deposit”;

 (b) the value of the property mentioned therein is increased by the amount of expenditures in respect of scientific research and experimental development carried on in Québec in the taxation years ended in a 60 consecutive month period ending on the date of the financial statements considered and, in the case of interim financial statements, is also increased by the amount of expenditures in respect of scientific research and experimental development carried on in Québec in the period covered by those interim financial statements.

1990, c. 7, s. 109; 1992, c. 1, s. 115; 1995, c. 1, s. 103; 1995, c. 63, s. 105; 1997, c. 3, s. 71.

965.10.1.2. For the purposes of paragraph d of section 965.10, where, between the end of the last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus and the date of that receipt or of that exemption, a substantial change occurs in relation to the composition of the property of a corporation and the Minister is of the opinion that the objectives of this Title are met, the Minister may, for the purpose of determining whether the value of the property of the corporation that are referred to in that paragraph d exceed 50%, consult any document the Minister considers appropriate in the circumstances, including the last audited interim financial statements of the corporation, prepared before the date of the receipt for the final prospectus or of the exemption from filing a prospectus and submitted to the shareholders.

For the purposes of the first paragraph, a substantial change in relation to the composition of the property of a corporation means a decrease of at least 25 points between the percentage representing the proportion that the value of the property referred to in paragraph d of section 965.10 is of the total value of its property, as shown in its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles, and the percentage representing the proportion that the value of the property referred to in paragraph d of section 965.10 is of the total value of its property, as shown in its last interim financial statements, or, where such financial statements have not been prepared, in any other document the Minister considers appropriate in the circumstances.

2004, c. 21, s. 227.

965.10.1.3. For the purposes of subparagraph i of paragraph e of section 965.10, a corporation is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the corporation, in the period referred to in paragraph a, with services under a service contract and the corporation would normally require the services of more than five full-time employees if those services were not provided.

2004, c. 21, s. 227.

965.10.2. For the purposes of section 965.10, where a corporation results from an amalgamation within the meaning of section 544 and a period of at least 12 months has not elapsed between the time of the amalgamation and the date of the receipt for the final prospectus or of the exemption from filing a prospectus, the requirement in paragraph e of section 965.10 shall be replaced by the requirement that that corporation have, throughout the period from the time of the amalgamation to the date of the receipt for the final prospectus or of the exemption from filing a prospectus, not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders and for one of the predecessor corporations to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of that Act or persons related to such insiders

 (a) throughout a 12-month period that includes the time of the amalgamation and that is established as if the period from the time of the amalgamation to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation; or

 (b) throughout a 6-month period that includes the time of the amalgamation and that is established as if the period from the time of the amalgamation to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation, where

(i)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(ii)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the time of the amalgamation, and

(iii)  a class of shares of the capital stock of the corporation resulting from the amalgamation is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph a of the first paragraph, a predecessor corporation is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period preceding the time of the amalgamation, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the predecessor corporation, in the period referred to in subparagraph a, with services under a service contract and that predecessor corporation would normally require the services of more than five full-time employees if those services were not provided.

1987, c. 21, s. 53; 1997, c. 3, s. 71; 1999, c. 83, s. 137; 2000, c. 39, s. 112; 2001, c. 7, s. 169; 2004, c. 21, s. 228.

965.10.3. For the purposes of section 965.10.2, where the predecessor corporation referred to in that section is itself a corporation resulting from an amalgamation within the meaning of section 544, in this section referred to as the original amalgamation, and a period of at least 12 months has not elapsed between the time of the original amalgamation and the time it became a predecessor corporation, in this section referred to as the time of the subsequent amalgamation, the requirement last provided in its respect in the first paragraph of section 965.10.2 concerning the number of employees shall be replaced by the requirement that that corporation have, throughout the period from the time of the original amalgamation to the time of the subsequent amalgamation, not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders and for one of the predecessor corporations to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of that Act or persons related to such insiders

 (a) throughout a 12-month period that includes the time of the original amalgamation and that is established as if the period from the time of the original amalgamation to the time of the subsequent amalgamation were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation; or

 (b) throughout a 6-month period that includes the time of the original amalgamation and that is established as if the period from the time of the original amalgamation to the time of the subsequent amalgamation were applicable to the predecessor corporation and not to the corporation resulting from the amalgamation, where

(i)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(ii)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the time of the amalgamation, and

(iii)  a class of shares of the capital stock of the corporation referred to in section 965.10.2, resulting from an amalgamation, is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph a of the first paragraph, a predecessor corporation is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period preceding the time of the original amalgamation, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the predecessor corporation, in the period referred to in subparagraph a, with services under a service contract and that predecessor corporation would normally require the services of more than five full-time employees if those services were not provided.

For the purposes of the first paragraph, where the predecessor corporation referred to lastly in that paragraph, or a predecessor corporation which is referred to lastly in that paragraph as a result of the application of this paragraph, is itself a corporation resulting from an amalgamation within the meaning of section 544 and a period of at least 12 months has not elapsed between the time of the original amalgamation and the time of the subsequent amalgamation, the rule set out in the first paragraph applies in relation to the requirement in its respect concerning the number of employees prescribed lastly in that paragraph.

1992, c. 1, s. 116; 1997, c. 3, s. 71; 1999, c. 83, s. 138; 2000, c. 39, s. 113; 2001, c. 7, s. 169; 2004, c. 21, s. 229.

965.10.3.1. For the purposes of section 965.10, where a corporation making a public share issue, a convertible security issue or a non-guaranteed convertible security issue does not meet the requirement of paragraph e of that section and a winding-up as described in section 556 of a subsidiary within the meaning of that section in respect of which the corporation is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or commences before and terminates after that period, the requirement is replaced by the following requirements:

 (a) the corporation shall, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus, have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders;

 (b) the subsidiary shall have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders

(i)  throughout a 12-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the subsidiary and not to the parent corporation, or

(ii)  throughout a 6-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the subsidiary and not to the parent corporation, where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the commencement of its winding-up, and

(3)  a class of shares of the capital stock of the corporation is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph i of subparagraph b of the first paragraph, a subsidiary is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period immediately preceding the commencement of its winding-up, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the subsidiary, in the period referred to in subparagraph a, with services under a service contract and the subsidiary would normally require the services of more than five full-time employees if those services were not provided.

1997, c. 14, s. 163; 1999, c. 83, s. 139; 2000, c. 39, s. 114; 2001, c. 7, s. 169; 2004, c. 21, s. 230.

965.10.3.2. For the purposes of section 965.10.3.1, where the subsidiary, in this section referred to as the particular subsidiary, does not meet the requirement of subparagraph b of the first paragraph of that section and a winding-up as described in section 556 of a subsidiary within the meaning of that section, in this section referred to as the other subsidiary, in respect of which the particular subsidiary is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the commencement of the winding-up of the particular subsidiary, or commences before and terminates after that period, the requirement is replaced by the following requirements:

 (a) the particular subsidiary shall, immediately before the commencement of its winding-up, have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders;

 (b) the other subsidiary shall have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders

(i)  throughout a 12-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the commencement of the winding-up of the particular subsidiary were applicable to the other subsidiary and not to the particular subsidiary, or

(ii)  throughout a 6-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the commencement of the winding-up of the particular subsidiary were applicable to the other subsidiary and not to the particular subsidiary, where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the commencement of its winding-up, and

(3)  a class of shares of the capital stock of the corporation referred to in section 965.10.3.1 that makes an issue referred to therein is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph i of subparagraph b of the first paragraph, the other subsidiary is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period immediately preceding the commencement of its winding-up, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the other subsidiary, in the period referred to in subparagraph a, with services under a service contract and that other subsidiary would normally require the services of more than five full-time employees if those services were not provided.

For the purposes of the first paragraph, where the other subsidiary does not meet the requirement of subparagraph b of that paragraph and a winding-up as described in section 556 of a subsidiary within the meaning of that section, in this paragraph referred to as the underlying subsidiary, in respect of which the other subsidiary is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the commencement of the winding-up of the other subsidiary, or commences before and terminates after that period, the other subsidiary is deemed to meet the requirement where the other subsidiary meets the requirement of subparagraph a of the first paragraph and the underlying subsidiary meets the requirement of subparagraph b of that paragraph, if

 (a) the other subsidiary is deemed to be the particular subsidiary in respect of the requirement of subparagraph a of the first paragraph; and

 (b) the underlying subsidiary is deemed to be the other subsidiary in respect of the requirement of subparagraph b of the first paragraph.

1997, c. 14, s. 163; 1999, c. 83, s. 140; 2000, c. 39, s. 115; 2001, c. 7, s. 169; 2004, c. 21, s. 231.

965.10.4. For the purposes of section 965.10, where a period of at least 12 months has not elapsed between the time of the beginning of the carrying on of a particular business by a corporation and the date of the receipt for the final prospectus or of the exemption from filing a prospectus, and the particular business carried on by the corporation may, if the Minister so decides, be considered in fact to consist mainly in the continuance of a business or part of a business carried on by another taxpayer before the time of the beginning of the carrying on of the particular business by the corporation, the requirement in paragraph e of section 965.10 shall be replaced by the requirement to have, throughout the period from the time of the beginning of the carrying on of the particular business by the corporation to the date of the receipt for the final prospectus or the exemption from filing a prospectus, not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders and, immediately before the time of the beginning of the carrying on of the particular business by the corporation, for the other taxpayer to have had, in relation to that business or part of a business, not fewer than five full-time employees who are not insiders within the meaning of section 89 of that Act or persons related to such insiders

 (a) throughout a 12-month period that includes the time of the beginning of the carrying on of the particular business by the corporation and that is established as if the period from the time of the beginning of that carrying on of the particular business to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the other taxpayer and not to the corporation; or

 (b) throughout a 6-month period that includes the time of the beginning of the carrying on of the particular business by the corporation and that is established as if the period from the time of the beginning of that carrying on of the particular business to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the other taxpayer and not to the corporation, where

(i)  the other taxpayer has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(ii)  a class of shares of the capital stock of the other taxpayer is listed on a Canadian stock exchange immediately before the time of the beginning of the carrying on of the particular business by the corporation, and

(iii)  a class of shares of the capital stock of the corporation is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of the first paragraph, the continuance of a business or part of a business carried on by another taxpayer before the beginning of the carrying on, by a corporation, of the particular business results from

 (a) the acquisition or rental, by the corporation, of property from the other taxpayer who, throughout the part of the period described in subparagraph a or b of the first paragraph preceding that acquisition or rental, carried on a business in which the other taxpayer used that property; or

 (b) the carrying on, by the corporation, of a new business that may reasonably be considered in fact to consist mainly in the extension of a business or part of a business carried on by the other taxpayer.

For the purposes of subparagraph a of the first paragraph, the other taxpayer is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period preceding the time of the beginning of the carrying on of the particular business by the corporation, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the other taxpayer, in the period referred to in subparagraph a, with services under a service contract and that other taxpayer would normally require the services of more than five full-time employees if those services were not provided.

2002, c. 9, s. 29; 2004, c. 21, s. 232.

965.11. Property the description of which is contemplated in paragraph d of section 965.10 is the following:

 (a) voting shares representing not less than 20% of the voting shares of a given corporation meeting the requirement of paragraph d of section 965.10;

 (a.1) promissory notes, debentures, bonds or other debt securities issued by a given corporation contemplated in paragraph a and shares without voting rights of such a given corporation;

 (b) debentures, bonds or shares issued by a cooperative, other than a savings and credit union, meeting the requirements of paragraph d of section 965.10;

 (c) promissory notes or other debt securities obtained in the ordinary course of its business and held by a bank, a body governed by the Insurance Companies Act (Statutes of Canada, 1991, chapter 47) or by the Act respecting insurance (chapter A-32), a corporation holding a licence or otherwise authorized by the laws of Canada or a province to offer its services there as a trustee, or any other corporation whose principal business is the lending of money or the purchasing of debts;

 (d) property held in inventory by a corporation carrying on the activities of a dealer within the meaning of the Securities Act (chapter V-1.1).

1979, c. 14, s. 4; 1983, c. 44, s. 37; 1987, c. 21, s. 54; 1988, c. 64, s. 587; 1990, c. 7, s. 110; 1993, c. 16, s. 310; 1993, c. 64, s. 112; 1995, c. 49, s. 220; 1997, c. 3, s. 71; 1997, c. 14, s. 164; 1999, c. 83, s. 141.

965.11.1. A corporation that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue is a qualified corporation if, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus,

 (a) it fulfills the requirements of paragraphs a to c of section 965.10;

 (b) (paragraph repealed);

 (c) its activity consists mainly in investing funds in the form of shares or capital stock of other corporations or in extending non-guaranteed loans;

 (d) more than 50% of the value of the investments mentioned in paragraph c, as shown in its financial statements submitted to the shareholders for its last taxation year ended before that date, or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles, is constituted of investments in corporations that mainly carry on their activities in Québec and whose shares are not listed on a stock exchange;

 (e) it participates in the administration of at least five different corporations described in paragraph d in which it holds investments mentioned in paragraph c;

 (f) it attests to the Minister, in prescribed form, that it undertakes to fulfill the requirement of paragraph a, except where it refers to paragraph a.1 of section 965.10, as well as the requirements of paragraphs c to e, throughout the 24 months following that date.

1986, c. 15, s. 141; 1988, c. 4, s. 99; 1990, c. 7, s. 111; 1992, c. 1, s. 117; 1995, c. 63, s. 106; 1997, c. 3, s. 71.

965.11.2. A qualified corporation contemplated in section 965.11.1 shall, throughout the 24 months following the date of the receipt for the final prospectus or of the exemption from filing a prospectus in respect of a public share issue, a convertible security issue or a non-guaranteed convertible security issue, fulfill the requirement of paragraph a of the said section 965.11.1, except where it refers to paragraph a.1 of section 965.10, as well as the requirements of paragraphs c to e of the said section 965.11.1.

1986, c. 15, s. 141; 1990, c. 7, s. 112; 1992, c. 1, s. 118; 1997, c. 3, s. 71.

965.11.3. For the purposes of application of paragraph f of section 965.11.1 and of section 965.11.2 at a particular time during the twenty-four months mentioned therein, the requirement provided in paragraph d of section 965.11.1 shall, where the financial statements submitted to the shareholders for the last taxation year of the corporation ended before that date are referred to, be interpreted as a requirement in respect of the statements submitted to the shareholders for the last taxation year of the corporation ended before the particular time.

1986, c. 15, s. 141; 1997, c. 3, s. 71.

965.11.4. For the purposes of paragraph d of section 965.11.1,

 (a) in the case of a corporation that is in its first fiscal period, except in the case provided for in paragraph c, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus shall be replaced by a reference to its financial statements at the beginning of its first fiscal period;

 (b) in the case of a corporation having modified its usual and accepted fiscal period within the 365 days preceding the date of the receipt for the final prospectus or the exemption from filing a prospectus otherwise than as a result of an amalgamation within the meaning of section 544, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or the exemption from filing a prospectus shall be replaced by a reference to its financial statements submitted to the shareholders for each of the taxation years ended within the 365 days preceding the date of the receipt for the final prospectus or the exemption from filing a prospectus;

 (c) in the case of a corporation resulting from an amalgamation within the meaning of section 544 within the 365 days preceding the date of the receipt for the final prospectus or the exemption from filing a prospectus, the reference to its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or the exemption from filing a prospectus shall be replaced by a reference to its financial statements submitted to the shareholders at the beginning of its first fiscal period where the corporation is in its first fiscal period, or for each of the taxation years ended since the amalgamation in other cases, and to the financial statements submitted to the shareholders of the predecessor corporation which, immediately before the time of amalgamation, met the requirement of paragraph d of the said section 965.11.1, for each of its taxation years ended within the 365 days preceding the time of amalgamation.

1986, c. 15, s. 141; 1987, c. 21, s. 55; 1997, c. 3, s. 71.

965.11.5. A corporation that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue is a qualified corporation if, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus,

 (a) it is a Canadian corporation whose head office or principal place of business is in Québec;

 (b) (subparagraph repealed);

 (c) substantially all its property consists of shares of the capital stock of one or more of its subsidiary controlled corporations or of loans or advances granted to such subsidiary corporations;

 (d) one of the subsidiary corporations meets the requirements of paragraphs a to d of section 965.10 and had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders

(i)  throughout the 12 months preceding that date, or

(ii)  throughout the six months preceding that date where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan, and

(2)  a class of shares of the capital stock of the corporation is listed on a Canadian stock exchange on that date.

For the purposes of subparagraph i of subparagraph d of the first paragraph, a subsidiary is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

 (a) a class of shares of its capital stock is, throughout the 12-month period preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, listed on a Canadian stock exchange; and

 (b) a person, other than such an insider or a person related thereto, or a partnership provides the subsidiary, in the period referred to in subparagraph a, with services under a service contract and the subsidiary would normally require the services of more than five full-time employees if those services were not provided.

1987, c. 21, s. 56; 1988, c. 4, s. 100; 1990, c. 7, s. 113; 1992, c. 1, s. 119; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1999, c. 83, s. 142; 1999, c. 83, s. 273; 2000, c. 39, s. 116; 2001, c. 7, s. 169; 2004, c. 21, s. 233.

965.11.6. A corporation that makes a public share issue, a convertible security issue or a non-guaranteed convertible security issue is a qualified corporation if, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus,

 (a) it fulfils the requirements of subparagraphs a to c of the first paragraph of section 965.11.5;

 (b) one of the subsidiary corporations referred to in the said section 965.11.5 fulfils the requirements of paragraphs a to f of section 965.11.1; and

 (c) it attests to the Minister, in prescribed form, that it undertakes that its subsidiary corporation referred to in paragraph b will fulfill the requirement of paragraph a of section 965.11.1, except where it refers to paragraph a.1 of section 965.10, as well as the requirement of paragraphs c to e of the said section 965.11.1, throughout the 24 months following that date.

1987, c. 21, s. 56