Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canada Disability Savings Act (S.C. 2007, c. 35, s. 136)

Act current to 2020-11-17 and last amended on 2017-01-01. Previous Versions

Payments (continued)

Marginal note:Canada Disability Savings Bonds

  •  (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary

    • (a) for each year after the year in which the plan is entered into; and

    • (b) for the year in which the plan is entered into and for each of the previous 10 years

      • (i) that is after 2007,

      • (ii) during which the beneficiary was resident in Canada, and

      • (iii) for which a Canada Disability Savings Bond has not previously been paid.

  • Marginal note:Terms and conditions

    (1.1) A Canada Disability Savings Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

  • Marginal note:Amount of bond

    (2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is

    • (a) $1,000, if the beneficiary is

      • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the phase-out income for the particular year,

      • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is less than or equal to the phase-out income for the particular year, or

      • (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

    • (b) the amount determined by the formula set out in subsection (4), if the beneficiary is

      • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year, or

      • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year.

  • Marginal note:Family income

    (3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

  • Marginal note:Formula

    (4) For the purposes of paragraph (2)(b), the formula is as follows:

    $1,000 - [$1,000 × (A - B)/(C - B)]

    where

    A
    is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii);
    B
    is the phase-out income for the particular year; and
    C
    is the first threshold for the particular year.
  • Marginal note:Rounding of amounts

    (5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them.

  • Marginal note:No determination for January

    (6) If there has been no determination of eligibility for a Canada child benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a Canada child benefit for the first month in the particular year in respect of which eligibility has been established.

  • Marginal note:Beneficiary born in December

    (7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

  • (8) [Repealed, 2010, c. 12, s. 28]

  • Marginal note:Lifetime cap

    (9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime.

  • 2007, c. 35, s. 136 “7”
  • 2010, c. 12, s. 28, c. 25, s. 168
  • 2016, c. 12, s. 115

Marginal note:Payment

 Neither a Canada Disability Savings Grant nor a Canada Disability Savings Bond may be paid unless

  • (a) the Minister is provided with, as the case may be,

    • (i) the Social Insurance Number of the beneficiary,

    • (ii) the Social Insurance Number of the eligible individual referred to in subparagraph 6(2)(a)(ii) or 7(2)(a)(ii) or (b)(ii), and

    • (iii) the business number of the department, agency or institution that maintains the beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act for a month in the particular year;

  • (b) the beneficiary is resident in Canada, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made; and

  • (c) the plan is not a specified disability savings plan, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made.

  • 2007, c. 35, s. 136 “8”
  • 2011, c. 15, s. 6

Marginal note:Interest

 The Minister may, in prescribed circumstances, pay interest, calculated as prescribed, in respect of Canada Disability Savings Grants or Canada Disability Savings Bonds.

Marginal note:Payments out of CRF

 All amounts payable by the Minister under this Act shall be paid out of the Consolidated Revenue Fund.

Marginal note:Waiver

 On application made by the holder or the beneficiary, to avoid undue hardship, the Minister may, in prescribed circumstances, waive any of the prescribed requirements of this Act or the regulations that relate to the payment of any amount or the repayment of any amount or earnings generated by that amount. The application must be in the form and manner approved by the Minister.

General

Marginal note:Debt due to Her Majesty

  •  (1) An amount required to be repaid under this Act, the regulations or an agreement entered into under this Act constitutes a debt due to Her Majesty in right of Canada as of the date on which the Minister issues a written notice to the person responsible for the debt indicating the amount that is due.

  • Marginal note:Recovery of payments and interest

    (2) Debts due to Her Majesty in right of Canada under this Act are recoverable, including in the Federal Court or any other court of competent jurisdiction, by the Minister of National Revenue.

  • Marginal note:Deduction and set-off

    (3) Despite subsection 14(1), debts due to Her Majesty in right of Canada under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable by Her Majesty in right of Canada to the person responsible for the debt, other than an amount payable under section 122.61 of the Income Tax Act.

Marginal note:Deduction and set-off by the Minister

 Despite subsections 12(2) and 14(1), an amount required to be repaid by a person under this Act, the regulations or an agreement entered into under this Act may be recovered by the Minister at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable under this Act to the person.

Marginal note:Limitation or prescription period

  •  (1) Subject to this section, no action or proceedings shall be taken to recover debts due to Her Majesty in right of Canada under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the Minister issues the notice referred to in subsection 12(1).

  • Marginal note:Acknowledgement of liability

    (2) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4), the time during which the limitation or prescription period has run before the acknowledgement does not count in the calculation of that period.

  • Marginal note:Acknowledgement after expiry of limitation or prescription period

    (3) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (2) and (5), be brought within six years after the date of the acknowledgement.

  • Marginal note:Types of acknowledgements

    (4) An acknowledgement of liability means

    • (a) a written promise to pay the money owing, signed by the person or his or her agent or other representative;

    • (b) a written acknowledgement of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

    • (c) a part payment by the person or his or her agent or other representative of any money owing; or

    • (d) any acknowledgement of the money owing made by the person, his or her agent or other representative or the trustee or director in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

  • Marginal note:Limitation or prescription period suspended

    (5) The running of a limitation or prescription period is suspended during

    • (a) the period beginning on the day on which the Minister receives an application under section 11 and ending on the day on which the Minister issues a decision;

    • (b) the period beginning on the day on which the Minister of National Revenue receives an application concerning subsection 146.4(12) of the Income Tax Act and ending on the day on which that Minister makes a decision;

    • (c) the period beginning on the day on which an application for judicial review, with respect to a decision of the Minister to issue a notice under subsection 12(1), is filed and ending on the day on which the final decision is rendered; and

    • (d) any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover debts due to Her Majesty in right of Canada under this Act.

  • Marginal note:Enforcement proceedings

    (6) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

 
Date modified: