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

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Act current to 2018-09-26 and last amended on 2018-07-01. Previous Versions

PART X.4Tax in Respect of Overpayments to Registered Education Savings Plans (continued)

Marginal note:Tax payable by subscribers

  •  (1) Every subscriber under a registered education savings plan shall pay a tax under this Part in respect of each month equal to 1% of the amount, if any, by which

    • (a) the total of all amounts each of which is the subscriber’s gross cumulative excess at the end of the month in respect of an individual

    exceeds

    • (b) the total of all amounts each of which is the portion of such an excess that has been withdrawn from a registered education savings plan before the end of the month.

  • Marginal note:Waiver of tax

    (2) If a subscriber under a registered education savings plan would, but for this subsection, be required to pay a tax in respect of a month under subsection 204.91(1) in respect of an individual, the Minister may waive or cancel all or part of the tax where it is just and equitable to do so having regard to all the circumstances, including

    • (a) whether the tax arose as a consequence of reasonable error;

    • (b) whether, as a consequence of one or more transactions or events to which subsection 204.9(4) or 204.9(5) applies, the tax is excessive; and

    • (c) the extent to which further contributions could be made into registered education savings plans in respect of the individual before the end of the month without causing additional tax to be payable under this Part if this Part were read without reference to this subsection.

  • Marginal note:Marriage or common-law partnership breakdown

    (3) If at any time an individual (in this subsection referred to as the “former subscriber”) ceases to be a subscriber under a registered education savings plan as a consequence of the settlement of rights arising out of, or on the breakdown of, the marriage or common-law partnership of the former subscriber and another individual (in this subsection referred to as the “current subscriber”) who is a subscriber under the plan immediately after that time, for the purpose of determining tax payable under this Part in respect of a month that ends after that time, each contribution made before that time into the plan by or on behalf of the former subscriber is deemed to have been made into the plan by the current subscriber and not by or on behalf of the former subscriber.

  • Marginal note:Deceased subscribers

    (4) For the purpose of applying this section where a subscriber has died, the subscriber’s estate is deemed to be the same person as, and a continuation of, the subscriber for each month that ends after the death.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 165;
  • 1998, c. 19, s. 58;
  • 2000, c. 12, s. 142.

Marginal note:Return and payment of tax

 Every person who is liable to pay tax under this Part in respect of a month in a year shall, within 90 days after the end of the year,

  • (a) file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;

  • (b) estimate in the return the amount of tax, if any, payable under this Part by the person in respect of each month in the year; and

  • (c) pay to the Receiver General the amount of tax, if any, payable by the person under this Part in respect of each month in the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 165.

Marginal note:Provisions applicable to Part

 Subsections 150(2) and 150(3), sections 152, 158 and 159, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I are applicable to this Part, with such modifications as the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 165.

PART X.5Payments Under Registered Education Savings Plans

Marginal note:Definitions

  •  (1) The definitions in subsection 146.1(1) apply for the purposes of this Part, except that the definition subscriber in that subsection shall be read without reference to paragraph (c).

  • Marginal note:Charging provision

    (2) Every person (other than a public primary caregiver that is exempt from tax under Part I) shall pay a tax under this Part for each taxation year equal to the amount determined by the formula

    (A + B - C) × D

    where

    A
    is the total of all amounts each of which is an accumulated income payment made at any time that is
    • (a) either

      • (i) under a registered education savings plan under which the person is a subscriber at that time, or

      • (ii) under a registered education savings plan under which there is no subscriber at that time, where the person has been a spouse or common-law partner of an individual who was a subscriber under the plan, and

    • (b) included in computing the person’s income under Part I for the year;

    B
    is the total of all amounts each of which is an accumulated income payment that is
    • (a) not included in the value of A in respect of the person for the year, and

    • (b) included in computing the person’s income under Part I for the year;

    C
    is the lesser of
    • (a) the lesser of the value of A in respect of the person for the year and the total of all amounts each of which is an amount deducted under subsection 146(5) or 146(5.1) in computing the person’s income under Part I for the year, and

    • (b) the amount, if any, by which $50,000 exceeds the total of all amounts each of which is an amount determined under paragraph (a) in respect of the person for a preceding taxation year; and

    D
    is
    • (a) where a tax, similar to the tax provided under this Part, is payable by the person for the year under a law of the province of Quebec, 12%, and

    • (b) in any other case, 20%.

  • Marginal note:Return and payment of tax

    (3) Every person who is liable to pay tax under this Part for a taxation year shall, on or before the person’s filing-due date for the year,

    • (a) file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;

    • (b) estimate in the return the amount of tax payable under this Part by the person for the year; and

    • (c) pay to the Receiver General the amount of tax payable under this Part by the person for the year.

  • Marginal note:Administrative rules

    (4) Subsections 150(2) and 150(3), sections 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply with any modifications that the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1998, c. 19, s. 59;
  • 1999, c. 22, s. 72;
  • 2000, c. 12, s. 142;
  • 2013, c. 34, s. 338.

PART XI[Repealed, 2017, c. 33, s. 66]

 [Repealed, 2017, c. 33, s. 66]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 205;
  • 2005, c. 30, s. 14;
  • 2007, c. 35, s. 120;
  • 2010, c. 12, s. 20;
  • 2017, c. 33, s. 66.

 [Repealed, 2017, c. 33, s. 66]

  • 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;
  • 2017, c. 33, s. 66.

 [Repealed, 2017, c. 33, s. 66]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 206.1;
  • 1994, c. 7, Sch. II, s. 167;
  • 1998, c. 19, s. 211;
  • 2005, c. 30, s. 14;
  • 2007, c. 35, s. 120;
  • 2017, c. 33, s. 66.

 [Repealed, 2017, c. 33, s. 66]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2007, c. 35, s. 120;
  • 2017, c. 33, s. 66.
 
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