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Income Tax Regulations

Version of section 103.1 from 2021-06-29 to 2024-05-14:

  •  (1) For the purpose of the description of C in subsection (2), plan payment means

    • (a) in the case of a disability assistance payment that is a lifetime disability assistance payment, the total amount of all the lifetime disability assistance payments that have been made or that may reasonably be expected to be made to the employee under the plan in their taxation year and that the employer has reasonable grounds to believe are described in paragraph (o) of the definition remuneration in subsection 100(1); or

    • (b) in the case of a disability assistance payment that is other than a lifetime disability assistance payment, the amount of the payment that is made to the employee under the plan and that is described in paragraph (o) of the definition remuneration in subsection 100(1).

  • (2) If an employer makes a disability assistance payment under a registered disability savings plan to an employee who is a resident of Canada, the employer shall, in lieu of the amount determined under section 102, deduct or withhold from the payment an amount determined by the formula

    (A – B) × C

    where

    A
    is the amount of the disability assistance payment that is made to the employee and that is described in paragraph (o) of the definition remuneration in subsection 100(1);
    B
    is
    • (a) if the beneficiary of the plan is deceased, nil, or

    • (b) the amount by which the total of the following amounts exceeds the total amount of all the disability assistance payments previously made to the employee in their taxation year and that are described in paragraph (o) of the definition remuneration in subsection 100(1):

      • (i) the amount determined for F in subsection 118(1.1) of the Act for the taxation year, and

      • (ii) the amount used under the description of B in subsection 118.3(1) of the Act for the taxation year; and

    C
    is
    • (a) if the plan payment does not exceed $5,000 and the amount is paid

      • (i) in Quebec, 5 per cent,

      • (ii) in any other province, 7 per cent, or

      • (iii) in Canada beyond the limits of any province or outside Canada, 10 per cent,

    • (b) if the plan payment exceeds $5,000 but does not exceed $15,000 and the amount is paid

      • (i) in Quebec, 10 per cent,

      • (ii) in any other province, 13 per cent, or

      • (iii) in Canada beyond the limits of any province or outside Canada, 20 per cent, or

    • (c) if the plan payment exceeds $15,000 and the amount is paid

      • (i) in Quebec, 15 per cent,

      • (ii) in any other province, 20 per cent, or

      • (iii) in Canada beyond the limits of any province or outside Canada, 30 per cent.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2016-30, s. 2
  • 2021, c. 23, s. 82

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