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

Act current to 2015-07-09 and last amended on 2015-06-30. Previous Versions

Lump-sum Payments

Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section and section 120.31.

    “eligible taxation year”

    « année d’imposition admissible »

    “eligible taxation year”, in respect of a qualifying amount received by an individual, means a taxation year

    • (a) that ended after 1977 and before the year in which the individual received the qualifying amount;

    • (b) throughout which the individual was resident in Canada;

    • (c) that did not end in a calendar year in which the individual became a bankrupt; and

    • (d) that was not included in an averaging period, within the meaning assigned by section 119 (as it read in its application to the 1987 taxation year), pursuant to an election that was made and not revoked by the individual under that section.

    “qualifying amount”

    « montant admissible »

    “qualifying amount” received by an individual in a taxation year means an amount (other than the portion of the amount that can reasonably be considered to be received as, on account of, in lieu of payment of or in satisfaction of, interest) that is included in computing the individual’s income for the year and is

    • (a) an amount

      • (i) that is received pursuant to an order or judgment of a competent tribunal, an arbitration award or a contract by which the payor and the individual terminate a legal proceeding, and

      • (ii) that is

        • (A) included in computing the individual’s income from an office or employment, or

        • (B) received as, on account of, in lieu of payment of or in satisfaction of, damages in respect of the individual’s loss of an office or employment,

    • (b) a superannuation or pension benefit (other than a benefit referred to in clause 56(1)(a)(i)(B)) received on account of, in lieu of payment of or in satisfaction of, a series of periodic payments (other than payments that would have otherwise been made in the year or in a subsequent taxation year),

    • (c) an amount described in paragraph 6(1)(f) or (f.1), subparagraph 56(1)(a)(iv) or paragraph 56(1)(b), or

    • (d) a prescribed amount or benefit,except to the extent that the individual may deduct for the year an amount under paragraph 8(1)(b), (n) or (n.1), 60(n) or (o.1) or 110(1)(f) in respect of the amount so included.

    “specified portion”

    « partie déterminée »

    “specified portion”, in relation to an eligible taxation year, of a qualifying amount received by an individual means the portion of the qualifying amount that relates to the year, to the extent that the individual’s eligibility to receive the portion existed in the year.

  • Marginal note:Deduction for lump-sum payments

    (2) There may be deducted in computing the taxable income of an individual (other than a trust) for a particular taxation year the total of all amounts each of which is a specified portion of a qualifying amount received by the individual in the particular year, if that total is $3,000 or more.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2000, c. 19, s. 17;
  • 2013, c. 34, s. 239.