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Bill C-301

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First Session, Forty-second Parliament,
64-65 Elizabeth II, 2015-2016
HOUSE OF COMMONS OF CANADA
BILL C-301
An Act to amend the Income Tax Act and to make a related amendment to another Act (registered retirement income fund)
FIRST READING, September 23, 2016
Mr. McCauley
421239


SUMMARY
This enactment amends the Income Tax Act to remove the requirement to withdraw minimum amounts from a registered retirement income fund. It also makes a related amendment to another Act.
Available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca


1st Session, 42nd Parliament,
64-65 Elizabeth II, 2015-2016
HOUSE OF COMMONS OF CANADA
BILL C-301
An Act to amend the Income Tax Act and to make a related amendment to another Act (registered retirement income fund)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.‍S.‍, c. 1 (5th Supp.‍)

Income Tax Act

1(1)Subclause 60(l)‍(v)‍(D)‍(II) of the Income Tax Act is replaced by the following:
(II)the total of all amounts received out of or under the fund in the year by an individual who was an annuitant under the fund before the taxpayer became the annuitant under the fund and that were included because of subsection 146.‍3(5) in computing that individual’s income for the year, and
(2)Subsection (1) applies to the taxation year that begins on January 1 of the year following the year in which this Act receives royal assent and to subsequent taxation years.
2(1)The definition minimum amount in subsection 146.‍3(1) of the Act is repealed.
(2)The definition retirement income fund in subsection 146.‍3(1) of the Act is replaced by the following:
retirement income fund means an arrangement between a carrier and an annuitant under which, in consideration for the transfer to the carrier of property, the carrier undertakes to pay amounts to the annuitant (and, when the annuitant so elects, to the annuitant’s spouse or common-law partner after the annuitant’s death), the total of which does not exceed the value of the property held in connection with the arrangement immediately before the time of the payment. (fonds de revenu de retraite)
(3)Paragraphs 146.‍3(2)‍(e) to (e.‍2) are replaced by the following:
(e)the fund provides that, at the direction of the annuitant, the carrier shall transfer all or part of the property held in connection with the fund, or an amount equal to its value at the time of the direction, together with all information necessary for the continuance of the fund, to a person who has agreed to be a carrier of another registered retirement income fund of the annuitant;
(4)Paragraph 146.‍3(5.‍1)‍(c) of the Act is replaced by the following:
(c)the total 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 the income of the taxpayer’s spouse or common-law partner.
(5)The portion of subsection 146.‍3(6.‍11) of the Act after paragraph (b) is replaced by the following:
in which case the eligible amount is the portion of the designated benefit of the particular individual in respect of the fund that is included because of subsection 146.‍3(5) in computing the particular individual’s income for the year.
(6)Subsections (1) to (5) apply to the taxation year that begins on January 1 of the year following the year in which this Act receives royal assent and to subsequent taxation years.
R.‍S.‍, c. I-4

Related Amendment to the Income Tax Conventions Interpretation Act

3Subparagraph (c)‍(i) of the definition periodic pension payment in section 5 of the Income Tax Conventions Interpretation Act is replaced by the following:
(i)the amount that would be 15% of the fair market value of the property (other than annuity contracts that, at the beginning of the year, are not described in paragraph (b.‍1) of the definition qualified investment in subsection 146.‍3(1) of the Income Tax Act) held in connection with the fund at the beginning of the year if all property transferred in the year and before that time to the carrier of the fund as consideration for the carrier’s undertaking to make payments under the fund had been so transferred immediately before the beginning of the year, and
Published under authority of the Speaker of the House of Commons

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