Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2015-08-04 and last amended on 2015-08-01. Previous Versions

Lifelong Learning Plan

Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section.

    “annuitant”

    « rentier »

    “annuitant” has the meaning assigned by subsection 146(1).

    “benefit”

    « prestation »

    “benefit” has the meaning assigned by subsection 146(1).

    “eligible amount”

    « montant admissible »

    “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 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 a person (in this definition referred to as the “designated person”) who is the individual or the individual’s spouse or common-law partner;

    • (c) the total of the particular 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 total 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

      • (i) is enrolled at the particular time as a full-time student in a qualifying educational program, or

      • (ii) has received written notification before the particular time that the designated person is absolutely or contingently entitled to enrol 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

      • (i) the beginning of the following year, and

      • (ii) 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 program before April of the following year,

      • (ii) the designated person does not withdraw from the 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 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 that participation period.

    “excluded premium”

    « prime exclue »

    “excluded premium” of an individual means a premium that

    • (a) was designated by the individual for the purpose of paragraph 60(j), (j.1) or (l) or subsection 146.01(3);

    • (b) was a repayment to which paragraph (b) of the definition “excluded withdrawal” in subsection 146.01(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 subsection 146(6.1) in computing the individual’s income for any taxation year.

    “excluded withdrawal”

    « retrait exclu »

    “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 “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 paid by the individual under a retirement savings plan that is, at the end of the taxation year of payment, a registered retirement savings plan under which the individual is the annuitant,

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

        • (A) if the individual was not resident in Canada at the time the individual filed a return of income for the taxation year in which the particular amount was received, the earlier of

          • (I) the end of the following calendar year, and

          • (II) the time at which the individual filed the return, and

        • (B) 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 prescribed form filed with the Minister on or before the particular time (or before such later time as is acceptable to the Minister).

    “full-time student”

    « étudiant à temps plein »

    “full-time student” in a taxation year includes an individual to whom subsection 118.6(3) applies for the purpose of computing tax payable under this Part for the year or the following taxation year.

    “LLP balance”

    « solde REP »

    “LLP balance” of an individual at any time means the amount, if any, by which the total of all eligible amounts received by the individual at or before that time exceeds the total of

    • (a) all amounts designated under subsection (3) by the individual for taxation years that ended before that time, and

    • (b) all amounts each of which is included under subsection (4) or (5) in computing the individual’s income for a taxation year that ended before that time.

    “participation period”

    « période de participation »

    “participation period” of an individual means each period

    • (a) that begins at the beginning of a calendar year

      • (i) in which the individual receives an eligible amount, and

      • (ii) at the beginning of which the individual’s LLP balance is nil; and

    • (b) that ends immediately before the beginning of the first subsequent calendar year at the beginning of which the individual’s LLP balance is nil.

    “premium”

    « prime »

    “premium” has the meaning assigned by subsection 146(1).

    “qualifying educational program”

    « programme de formation admissible »

    “qualifying educational program” means a program at a designated educational institution, as defined in subsection 118.6(1), of not less than three consecutive months duration that requires that each student taking the program spend not less than ten hours per week on courses or work in the program and that is

    • (a) of a technical or vocational nature designed to furnish a person with skills for, or improve a person’s skills in, an occupation, if the program is at an institution described in subparagraph (a)(ii) of that definition; and

    • (b) at a post-secondary school level, in any other case.

    “repayment period”

    « période de remboursement »

    “repayment period” of an individual for a participation period of the individual in respect of a person designated under paragraph (b) of the definition “eligible amount” means the period, if any, within the participation period

    • (a) that begins

      • (i) at the beginning of the third calendar year within the participation period, if the person would not be entitled to claim an amount under subsection 118.6(2) in respect of at least three months in each of the second and third calendar years within the participation period, if that subsection were read without reference to paragraph (b) of the description of B in that subsection,

      • (ii) at the beginning of the fourth calendar year within the participation period, if subparagraph (i) does not apply and the person would not be entitled to claim an amount under subsection 118.6(2) in respect of at least three months in each of the third and fourth calendar years within the participation period, if that subsection were read without reference to paragraph (b) of the description of B in that subsection,

      • (iii) at the beginning of the fifth calendar year within the participation period, if subparagraphs (i) and (ii) do not apply and the person would not be entitled to claim an amount under subsection 118.6(2) in respect of at least three months in each of the fourth and fifth calendar years within that period, if that subsection were read without reference to paragraph (b) of the description of B in that subsection, and

      • (iv) in any other case, at the beginning of the sixth calendar year within the participation period; and

    • (b) that ends at the end of the participation period.

  • Marginal note:Rule of application

    (2) For the purpose of the definition “eligible amount” in subsection (1), 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

      • (i) that definition were read without reference to paragraphs (b) and (e) of that definition, and

      • (ii) each reference in the portion of that definition after paragraph (d) to “designated person” were read as “individual” or “individual’s spouse or common-law partner”; and

    • (d) the Minister so permits.

  • Marginal note:Repayment of eligible amount

    (3) An individual may designate a single amount for a taxation year in prescribed form filed with the individual’s return of income for the year if the amount does not exceed the lesser of

    • (a) the total of all amounts (other than excluded premiums, repayments to which paragraph (b) of the definition “excluded withdrawal” in subsection (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 subsection, 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 LLP balance at the end of the year.

  • Marginal note:If portion of eligible amount not repaid

    (4) There shall be included in computing an individual’s income for a particular taxation year that begins after 2000 the amount determined by the formula

    [(A - B - C)/(10 - D)] - E

    where

    A 
    is
    • (a) nil, if

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

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

    • (b) in any other case, the total 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 
    is
    • (a) nil, if the particular year is the first taxation year in a repayment period of the individual, and

    • (b) in any other case, the total of all amounts designated under subsection (3) by the individual for preceding taxation years (other than taxation years in participation periods of the individual that ended before the particular year);

    C 
    is the total of all amounts each of which is included under this subsection or subsection (5) 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 
    is the lesser of nine and the number of taxation years of the individual that end in the period that
    • (a) begins at the beginning of the individual’s last repayment period that began at or before the beginning of the particular year, and

    • (b) ends at the beginning of the particular year; and

    E 
    is
    • (a) if the particular year is the first taxation year within a repayment period of the individual, the total of the amount designated under subsection (3) 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

    • (b) in any other case, the amount designated under subsection (3) by the individual for the particular year.

  • Marginal note:Ceasing residence in Canada

    (5) If at any time in a taxation year an individual ceases to be resident in Canada, there shall be included in computing the individual’s income for the period in the year during which the individual was resident in Canada the amount, if any, by which

    • (a) the total of all amounts each of which is an eligible amount received by the individual in the year or a preceding taxation year

    exceeds the total of

    • (b) all amounts designated under subsection (3) by the individual in respect of amounts paid not later than 60 days after that time and before the individual files a return of income for the year, and

    • (c) all amounts included under subsection (4) or this subsection in computing the individual’s income for preceding taxation years.

  • Marginal note:Death of individual

    (6) If an individual dies at any time in a taxation year, there shall be included in computing the individual’s income for the year the amount, if any, by which

    • (a) the individual’s LLP balance immediately before that time

    exceeds

    • (b) the amount designated under subsection (3) by the individual for the year.

  • Marginal note:Exception

    (7) If a spouse or common-law partner of an individual was resident in Canada immediately before the individual’s death at a particular time in a taxation year and the spouse or common-law partner and the individual’s legal representatives jointly so elect in writing in the individual’s return of income for the year,

    • (a) subsection (6) does not apply to the individual;

    • (b) the spouse or common-law partner is deemed to have received a particular eligible amount at the particular time equal to the amount that, but for this subsection, would be determined under subsection (6) in respect of the individual;

    • (c) subject to paragraph (d), for the purpose of applying this section after the particular time, the spouse or common-law partner is deemed to be the person designated under paragraph (b) of the definition “eligible amount” in subsection (1) in respect of the particular amount; and

    • (d) where the spouse or common-law partner received an eligible amount before the particular time in the spouse’s or common-law partner’s participation period that included the particular time and the particular individual designated under paragraph (b) of the definition “eligible amount” in subsection (1) in respect of that eligible amount was not the spouse or common-law partner, for the purpose of applying this section after the particular time the particular individual is deemed to be the person designated under that paragraph in respect of the particular amount.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1999, c. 22, s. 61;
  • 2000, c. 12, s. 142;
  • 2005, c. 19, s. 33;
  • 2011, c. 24, s. 47.