Income Tax Act

Marginal note:Liability in respect of amounts received out of or under RCA trust

• 160.3 (1) Where an amount required to be included in the income of a taxpayer by virtue of paragraph 56(1)(x) is received by a person with whom the taxpayer is not dealing at arm’s length, that person is jointly and severally liable with the taxpayer to pay a part of the taxpayer’s tax under this Part for the taxation year in which the amount is received equal to the amount by which the taxpayer’s tax for the year exceeds the amount that would be the taxpayer’s tax for the year if the amount had not been received, but nothing in this subsection shall be deemed to limit the liability of the taxpayer under any other provision of this Act.

• Marginal note:Minister may assess recipient

  (2) The Minister may at any time assess a person in respect of any amount payable by the person 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

  (3) Where a taxpayer and another person have, by virtue of subsection 160.3(1), become jointly and severally liable in respect of part or all of a liability of the taxpayer under this Act, the following rules apply:

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

  • (b) a payment by the taxpayer on account of the taxpayer’s liability only discharges the other person’s liability to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the other person was, by subsection 160.3(1), made jointly and severally liable.