Income Tax Act

Marginal note:Joint and several liability in respect of amounts received out of or under RRSP

• 160.2 (1) Where

  • (a) an amount is received out of or under a registered retirement savings plan by a taxpayer other than an annuitant (within the meaning assigned by subsection 146(1)) under the plan, and

  • (b) that amount or part thereof would, but for paragraph (a) of the definition benefit in subsection 146(1), be received by the taxpayer as a benefit (within the meaning assigned by that definition),

  the taxpayer and the last annuitant under the plan are jointly and severally liable to pay a part of the annuitant’s tax under this Part for the year of the annuitant’s death equal to that proportion of the amount by which the annuitant’s tax for the year is greater than it would have been if it were not for the operation of subsection 146(8.8) that the total of all amounts each of which is an amount determined under paragraph 160.2(1)(b) in respect of the taxpayer is of the amount included in computing the annuitant’s income by virtue of that subsection, but nothing in this subsection shall be deemed to limit the liability of the annuitant under any other provision of this Act.

• Marginal note:Joint and several liability in respect of amounts received out of or under RRIF

  (2) Where

  • (a) an amount is received out of or under a registered retirement income fund by a taxpayer other than an annuitant (within the meaning assigned by subsection 146.3(1)) under the fund, and

  • (b) that amount or part thereof would, but for paragraph 146.3(5)(a), be included in computing the taxpayer’s income for the year of receipt pursuant to subsection 146.3(5),

  the taxpayer and the annuitant are jointly and severally liable to pay a part of the annuitant’s tax under this Part for the year of the annuitant’s death equal to that proportion of the amount by which the annuitant’s tax for the year is greater than it would have been if it were not for the operation of subsection 146.3(6) that the amount determined under paragraph 160.2(2)(b) is of the amount included in computing the annuitant’s income by virtue of that subsection, but nothing in this subsection shall be deemed to limit the liability of the annuitant under any other provision of this Act.

• Marginal note:Minister may assess recipient

  (3) The Minister may at any time assess a taxpayer in respect of any amount payable by virtue of this section and the provisions of this Division are applicable, with such modifications as the circumstances require, in respect of an assessment made under this section as though it had been made under section 152.

• Marginal note:Rules applicable

  (4) Where a taxpayer and an annuitant have, by virtue of subsection 160.2(1) or 160.2(2), become jointly and severally liable in respect of part or all of a liability of the annuitant under this Act, the following rules apply:

  • (a) a payment by the taxpayer on account of the taxpayer’s liability shall to the extent thereof discharge the joint liability; but

  • (b) a payment by the annuitant on account of the annuitant’s liability only discharges the taxpayer’s liability to the extent that the payment operates to reduce the annuitant’s liability to an amount less than the amount in respect of which the taxpayer was, by subsection 160.2(1) or 160.2(2), as the case may be, made jointly and severally liable.