Income Tax Act

Version of section 206 from 2008-01-01 to 2017-10-13:

Marginal note:Tax payable where inadequate consideration
  •  (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, a trust governed by the plan

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

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

  • Marginal note:Amount of tax payable

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

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

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

  • Marginal note:Liability for tax

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

  • Marginal note:Payment of amount collected to RDSP

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

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

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

  • Marginal note:Deemed not to be a contribution

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

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 206;
  • 1994, c. 7, Sch. II, s. 166, Sch. VIII, s. 120, c. 21, s. 93;
  • 1998, c. 19, s. 210;
  • 2000, c. 14, s. 41, c. 19, s. 60;
  • 2001, c. 17, ss. 169, 247;
  • 2005, c. 30, s. 14;
  • 2007, c. 35, s. 120.
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