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

Advanced Life Deferred Annuity

Marginal note:Definitions

• 146.5 (1) The following definitions apply in this section.

  advanced life deferred annuity

  advanced life deferred annuity means a contract for an annuity that meets the following conditions:

  • (a) it is issued by a licensed annuities provider;

  • (b) it specifies that it is intended to qualify as an advanced life deferred annuity under this Act;

  • (c) periodic annuity payments under the contract

    • (i) commence to be paid no later than the end of the calendar year in which the annuitant attains 85 years of age, and

    • (ii) are payable for the life of the annuitant or for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner;

  • (d) periodic annuity payments under the contract are payable

    • (i) in equal amounts, or

    • (ii) in amounts that are not equal only because the payments

      • (A) are adjusted in whole or in part to reflect

        • (I) increases in the Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act, or

        • (II) increases at a rate specified in the contract, not exceeding 2% per annum, or

      • (B) are reduced on the death of the annuitant or the annuitant’s spouse or common-law partner;

  • (e) if an annuity is payable for the lives, jointly, of the annuitant and the annuitant’s spouse or common-law partner and the annuitant dies before payments commence to be paid, then the payments to the annuitant’s spouse or common-law partner shall

    • (i) commence no later than the date that they would have commenced if the annuitant were alive, and

    • (ii) be adjusted in accordance with generally accepted actuarial principles if the payments commence before the date they would have commenced if the annuitant were alive;

  • (f) the amount to be paid, if any, to one or more beneficiaries under the contract after the death of the annuitant — or, in the case of a joint-lives annuity, after the last death of the annuitant and the annuitant’s spouse or common-law partner — shall

    • (i) be paid as soon as practicable after the death of the annuitant or the last death of the annuitant and the annuitant’s spouse or common-law partner, as the case may be, and

    • (ii) not exceed the amount, if any, by which the total amount transferred to acquire the annuity exceeds the total amount of annuity payments made under the contract;

  • (g) it provides that all or part of the amount transferred to acquire the annuity may be refunded, if

    • (i) the refund is paid to reduce the amount of tax that would otherwise be payable by the annuitant under Part XI, and

    • (ii) the refund is

      • (A) paid to the annuitant, or

      • (B) transferred directly to

        • (I) the issuer of a registered retirement savings plan of the annuitant,

        • (II) the carrier of a registered retirement income fund of the annuitant,

        • (III) the administrator of a pooled registered pension plan under which the annuitant is a member, or

        • (IV) the administrator of a money purchase provision of a registered pension plan under which the annuitant is a member;

  • (h) if it provides that the spouse or common-law partner may request a payment in a single amount in full or partial satisfaction of the spouse’s or common-law partner’s entitlement to payments described in subparagraph (c)(ii) as a consequence of the death of the annuitant, then the single amount cannot exceed the present value (at the time the single amount is paid) of the other payments that, as a consequence of the payment of the single amount, cease to be provided;

  • (i) no right under the contract is capable of being assigned, charged, anticipated, given as security or surrendered; and

  • (j) it does not provide for any payment under the contract except as specified in this definition. (rente viagère différée à un âge avancé)

  annuitant

  annuitant means an individual who has acquired a contract for an annuity from a licensed annuities provider. (rentier)

  beneficiary

  beneficiary, under a contract for an annuity, means an individual who has a right under the contract to receive a payment after the death of the annuitant or the annuitant’s spouse or common-law partner. (bénéficiaire)

• Marginal note:Taxable amount — annuity payments

  (2) Amounts (excluding amounts described in paragraph (f) or (g) of the definition advanced life deferred annuity in subsection (1) and including amounts deemed to have been received under paragraph (7)(a)) received by a taxpayer in a taxation year under an advanced life deferred annuity shall be included in computing the income of the taxpayer for the taxation year.

• Marginal note:Taxable amount — death benefits

  (3) Amounts described in paragraph (f) of the definition advanced life deferred annuity in subsection (1) received by a taxpayer in a taxation year under an advanced life deferred annuity as a result of the death of an individual shall be included in computing the income of

  • (a) the taxpayer for the taxation year, if the taxpayer is

    • (i) the spouse or common-law partner of the individual, or

    • (ii) a child or grandchild of the individual who was, immediately before the death of the individual, financially dependent on the individual for support; and

  • (b) the individual for the taxation year in which the individual died, in any other case.

• Marginal note:Taxation of refunds

  (4) The amount of a refund described in clause (g)(ii)(A) of the definition advanced life deferred annuity in subsection (1) that is paid to an annuitant shall be included in the income of the annuitant.

• Marginal note:Treatment of amount transferred

  (5) If an amount is paid in circumstances described in clause (g)(ii)(B) of the definition advanced life deferred annuity in subsection (1),

  • (a) the amount shall not, by reason only of that payment, be included by reason of paragraph 56(1)(z.5) in computing the income of any taxpayer;

  • (b) no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer;

  • (c) in the case of an amount paid to a registered pension plan, the amount is deemed not to be a contribution for the purpose of applying Parts LXXXIII and LXXXV of the Income Tax Regulations; and

  • (d) in the case of an amount paid to a registered retirement savings plan or a pooled registered pension plan, the amount shall not be included in determining the amount of the individual’s undeducted RRSP premiums under subsection 204.2(1.2).

• Marginal note:Deemed payment to beneficiary

  (6) An amount is deemed to have been received at a particular time by a beneficiary (as defined in subsection 108(1)) of a deceased annuitant’s estate, and not by the legal representative of the deceased annuitant, if

  • (a) the amount is described in paragraph (f) of the definition advanced life deferred annuity in subsection (1);

  • (b) the amount was paid to the legal representative;

  • (c) the beneficiary is described in paragraph (3)(a);

  • (d) the beneficiary is entitled to the amount in full or partial satisfaction of their rights as a beneficiary under the deceased annuitant’s estate; and

  • (e) the amount is designated jointly by the legal representative and the beneficiary in prescribed form filed with the Minister.

• Marginal note:Amended contract

  (7) If an amendment made at any time to a contract results in it no longer meeting the conditions in the definition advanced life deferred annuity in subsection (1), the following rules apply:

  • (a) the annuitant under the contract immediately before that time is deemed to have received under the contract at that time an amount equal to the fair market value of their interest in the contract at that time; and

  • (b) the annuitant is deemed to have acquired their interest in the contract at that time at a cost equal to the fair market value of the interest at that time.

Tax-Free First Home Savings Account

Marginal note:Definitions

• 146.6 (1) The following definitions apply in this section.

  annual FHSA limit

  annual FHSA limit of a taxpayer for a taxation year is the least of

  • (a) the amount determined by the formula

    A + B − C

    where

    A

    is the total of all contributions made to a FHSA in the year by the taxpayer (other than any contributions made after the taxpayer’s first qualifying withdrawal from a FHSA),

    B

    is

    • (i) if the taxpayer’s maximum participation period has not begun in a preceding taxation year, nil, and

    • (ii) in any other case, the amount by which the amount determined under this paragraph for the preceding taxation year exceeds the annual FHSA limit for that taxation year, and

    C

    is the total of all designated amounts described in paragraph (b) of the definition designated amount in subsection 207.01(1) for the year,

  • (b) the amount determined by the formula

    $8,000 + D − (E − F)

    where

    D

    is the amount of the FHSA carryforward for the taxation year,

    E

    is the taxpayer’s net RRSP-to-FHSA transfer amount at the end of the taxation year, and

    F

    is the total of all amounts, each of which is an amount determined in respect of each preceding taxation year that is

    • (i) if the taxpayer had not started their maximum participation period in the year, nil, or

    • (ii) in any other case, the lesser of

      • (A) the amount determined by the formula

        G − H

        where

        G

        is the amount determined for E in the year, and

        H

        is the amount determined for F in the year, and

      • (B) $8,000 plus the amount of the FHSA carryforward for the year, and

  • (c) nil, if the taxation year is after the year in which

    • (i) the taxpayer’s maximum participation period has ended, or

    • (ii) the taxpayer has died. (plafond annuel au titre du CELIAPP)

  beneficiary

  beneficiary under a FHSA means an individual (including an estate) or a qualified donee that has a right to receive a distribution from the FHSA after the death of the holder of the FHSA. (bénéficiaire)

  first home savings account

  first home savings account or FHSA means an arrangement registered with the Minister that has not ceased to be a FHSA under subsection 146.6(16). (compte d’épargne libre d’impôt pour l’achat d’une première propriété ou CELIAPP)

  FHSA carryforward

  FHSA carryforward of a taxpayer for a taxation year is the least of

  • (a) $8,000,

  • (b) the amount determined by the formula

    A − B

    where

    A

    is the amount determined in paragraph (b) of the definition annual FHSA limit for the preceding taxation year, and

    B

    is the amount determined in paragraph (a) of the definition annual FHSA limit for the preceding taxation year plus the total of all contributions made to a FHSA in the preceding taxation year by the taxpayer after the taxpayer’s first qualifying withdrawal from a FHSA, and

  • (c) nil, if the taxpayer had not started their maximum participation period prior to the taxation year. (montant des cotisations reporté)

  holder

  holder of an arrangement means

  • (a) until the death of the individual who entered into the arrangement, the individual; and

  • (b) after the death of the individual, the individual’s survivor, if the survivor is designated under the arrangement to become a successor of the holder and is a qualifying individual. (titulaire)

  issuer

  issuer of an arrangement means the person described as the issuer in the definition qualifying arrangement. (émetteur)

  maximum participation period

  maximum participation period of an individual means the period that

  • (a) begins when an individual first enters into a qualifying arrangement; and

  • (b) ends at the end of the year following the year in which the earliest of the following events occur:

    • (i) the 14th anniversary of the date the individual first enters into a qualifying arrangement,

    • (ii) the individual attains 70 years of age, and

    • (iii) the individual first makes a qualifying withdrawal from a FHSA. (période de participation maximale)

  net RRSP-to-FHSA transfer amount

  net RRSP-to-FHSA transfer amount of a holder at a particular time means the amount by which‍

  • (a) the total of all amounts transferred under paragraph 146(16)(a.2), at or before that time, to a FHSA of the holder

  exceeds

  • (b) the total of all amounts designated by the holder under paragraph (a) of the definition designated amount in subsection 207.01(1) at or before that time. (montant net de transfert de REER à CELIAPP)

  non-qualified investment

  non-qualified investment has the same meaning as in subsection 207.01(1). (placement non admissible)

  qualified investment

  qualified investment has the same meaning as in subsection 207.01(1). (placement admissible)

  qualifying arrangement

  qualifying arrangement, at a particular time, means an arrangement

  • (a) that is entered into after March 2023 between a person (in this definition referred to as the “issuer”) and a qualifying individual;

  • (b) that is

    • (i) an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

    • (ii) an annuity contract with an issuer that is a licensed annuities provider, or

    • (iii) a deposit with an issuer that is

      • (A) a person that is, or is eligible to become, a member of the Canadian Payments Association, or

      • (B) a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of the Canadian Payments Act;

  • (c) that provides for contributions to be made under the arrangement to the issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the issuer making distributions under the arrangement to the holder;

  • (d) under which the issuer and the qualifying individual agree, at the time the arrangement is entered into, that the issuer will file with the Minister an election to register the arrangement as a FHSA, in the prescribed form and manner under the Social Insurance Number of the qualifying individual with whom the arrangement was entered into; and

  • (e) that, at all times throughout the period that begins at the time the arrangement is entered into and that ends at the particular time, complies with the conditions in subsection (2). (arrangement admissible)

  qualifying home

  qualifying home means

  • (a) a housing unit located in Canada; or

  • (b) a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada, except that, where the context so requires, a reference to a share with a right to possession of a housing unit described means the housing unit to which the share relates. (habitation admissible)

  qualifying individual

  qualifying individual, at a particular time, means an individual who

  • (a) is a resident of Canada;

  • (b) is at least 18 years of age; and

  • (c) did not, at any prior time in the calendar year or in the preceding four calendar years, inhabit as a principal place of residence a qualifying home (or what would be a qualifying home if it were located in Canada) that was owned, whether jointly with another person or otherwise, by

    • (i) the individual, or

    • (ii) a person who is the spouse or common-law partner of the individual at the particular time. (particulier déterminé)

  qualifying withdrawal

  qualifying withdrawal of an individual means an amount received at a particular time by the individual as a benefit out of or under a FHSA if

  • (a) the amount is received as a result of the individual’s written request in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence;

  • (b) the individual

    • (i) is a resident of Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the time at which the individual acquires the qualifying home, and

    • (ii) does not have an owner-occupied home within the meaning of paragraph 146.01(2)(a.1) in the period

      • (A) that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and

      • (B) that ends on the 31st day before the particular time;

  • (c) the individual entered into an agreement in writing before the particular time for the acquisition or construction of the qualifying home before October 1 of the calendar year following the year in which the amount was received; and

  • (d) the individual did not acquire the qualifying home more than 30 days before the particular time. (retrait admissible)

  survivor

  survivor of a holder means another individual who is, immediately before the holder’s death, a spouse or common-law partner of the holder.‍ (survivant)

• Marginal note:Qualifying arrangement conditions

  (2) For the purposes of paragraph (e) of the definition qualifying arrangement in subsection (1), the conditions are as follows:

  • (a) the arrangement requires that it be maintained for the exclusive benefit of the holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the holder);

  • (b) the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds;

  • (c) the arrangement prohibits anyone other than the holder from making contributions under the arrangement;

  • (d) the arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the holder under section 207.021;

  • (e) the arrangement provides that, at the direction of the holder, the issuer shall transfer all or any part of the property held in connection with the arrangement (or an amount equal to its value) to another FHSA of the holder or to an RRSP or a RRIF under which the holder is the annuitant;

  • (f) if the arrangement is an arrangement in trust, it prohibits the trust from borrowing money or other property for the purposes of the arrangement;

  • (g) the arrangement provides that it ceases to be a FHSA after the end of the holder’s maximum participation period;

  • (h) the arrangement, if it involves an issuer described in subparagraph (b)(iii) of the definition qualifying arrangement in subsection (1), includes provisions stipulating that the issuer has no right of offset with respect to the property held under the arrangement in connection with any debt or obligation owing to the issuer; and

  • (i) the arrangement meets prescribed conditions.

• Marginal note:Trust not taxable

  (3) No tax is payable under this Part by a trust that is governed by a FHSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,

  • (a) income includes dividends described in section 83;

  • (b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and

  • (c) the trust’s income shall be computed without reference to subsection 104(6).

• Marginal note:Amount credited to a deposit

  (3.1) An amount that is credited or added to a deposit that is a FHSA as interest or other income in respect of the FHSA is deemed not to be received by the holder of the FHSA or any other person solely because of that crediting or adding.

• Marginal note:Carrying on a business

  (4) If tax is payable under this Part for a taxation year by application of subsection (3) by a trust that is governed by a FHSA that carries on one or more businesses at any time in the taxation year,

  • (a) the holder of the FHSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and

  • (b) the issuer’s liability at any time for amounts payable under this Act in respect of that business or those businesses may not exceed the total of

    • (i) the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and

    • (ii) the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.

• Marginal note:FHSA deduction

  (5) There may be deducted in computing a taxpayer’s income for a taxation year an amount not exceeding the lesser of

  • (a) the amount determined by the formula

    A − B

    where

    A

    is the total of all amounts each of which is the taxpayer’s annual FHSA limit for the year and each preceding taxation year, and

    B

    is the total of all amounts each of which is an amount deducted under this subsection in computing the individual’s income for preceding taxation years, and

  • (b) the amount by which $40,000 exceeds the total of

    • (i) the amount determined for B in paragraph (a), and

    • (ii) the taxpayer’s net RRSP-to-FHSA transfer amount as at the end of the year.

• Marginal note:Withdrawals included in income

  (6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts received by the taxpayer in the year out of or under a FHSA of which the taxpayer is the holder, other than an amount that is

  • (a) a qualifying withdrawal;

  • (b) a designated amount as defined in subsection 207.01(1); or

  • (c) otherwise included in computing the income of the taxpayer.

• Marginal note:Transfer of amounts

  (7) Subsection (8) applies to an amount transferred at a particular time from a FHSA (in this subsection referred to as the “transferor FHSA”) if the following conditions are met:

  • (a) the amount is transferred on behalf of an individual who is

    • (i) the holder of the transferor FHSA,

    • (ii) a spouse or common-law partner or former spouse or common-law partner of the holder of the transferor FHSA and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the holder and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or

    • (iii) entitled to the amount as a consequence of the death of the holder of the transferor FHSA and was a spouse or common-law partner of the holder immediately before the death;

  • (b) the amount is transferred directly to

    • (i) another FHSA of the individual, or

    • (ii) an RRSP or a RRIF under which the individual is the annuitant; and

  • (c) if the transfer is not made to another FHSA of the holder of the transferor FHSA, the amount does not exceed the amount determined by the formula

    A − B

    where

    A

    is the amount that is the total fair market value, immediately before the particular time, of all property held by a FHSA under which the last holder of the transferor FHSA is the last holder, and

    B

    is the excess FHSA amount (as defined in subsection 207.‍01(1)) of the last holder of the transferor FHSA immediately before the particular time.

• Marginal note:Tax-free transfer

  (8) If this subsection applies to an amount transferred from a FHSA,

  • (a) the amount shall not, by reason only of the transfer, be included in computing the income of any taxpayer; and

  • (b) no deduction may be made under this Part in respect of the amount in computing the income of any taxpayer.

• Marginal note:Taxable transfer

  (9) If an amount is transferred from a FHSA to a plan or fund (in this subsection referred to as the “transferee plan”) that is a FHSA, RRSP or RRIF and subsection (8) does not apply to the amount transferred,

  • (a) the amount is deemed to have been received from the FHSA by the holder of the FHSA;

  • (b) the holder or annuitant of the transferee plan is deemed to have paid the amount as a contribution or premium to the transferee plan; and

  • (c) in the case that the transferee plan is a RRIF, for the purposes of subsection 146(5) and Part X.1, the annuitant of the transferee plan is deemed to have paid the amount at the time of the transfer as a premium under a RRSP under which the annuitant is the annuitant (as defined in subsection 146(1)).

• Marginal note:Apportionment of transferred amount

  (10) If an amount is transferred from a FHSA to another FHSA, or to a RRSP or RRIF, and a portion but not all of the amount is transferred in accordance with subsection (7),

  • (a) subsection (8) applies to the portion of the amount transferred in accordance with subsection (7), and

  • (b) subsection (9) applies with respect to the remainder of the amount.

• Marginal note:Security for loan

  (11) If at any time in a taxation year a trust governed by a FHSA uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the year of the holder of the FHSA at that time.

• Marginal note:Recovery of property used as security

  (12) If in a taxation year a property described in subsection (11) ceases to be used as security for a loan, there may be deducted, in computing the income of the holder of the relevant FHSA for the taxation year, an amount equal to the amount determined by the formula

  A − B

  where

  A

  is the amount included by application of subsection (11) in computing the income of the holder as a consequence of the property being used as security for a loan; and

  B

  is the net loss (exclusive of payments by the trust as or on account of interest) sustained by the trust in consequence of its using the property, or permitting it to be used, as security for the loan and not as a result of a change in the fair market value of the property.

• Marginal note:Successor holder

  (13) If the holder of a FHSA dies and the holder’s survivor is designated as the successor holder of the FHSA, the survivor is, immediately after the time of death, deemed to have entered into a new qualifying arrangement in respect of the FHSA unless

  • (a) the survivor is a qualifying individual at that time and

    • (i) no contributions or transfers are made to the FHSA by the survivor after that time,

    • (ii) no qualifying withdrawals are made from the FHSA after that time, and

    • (iii) the balance of the FHSA is transferred to a RRSP or RRIF of the survivor or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or

  • (b) the survivor is not a qualifying individual at that time, in which case the balance of the FHSA is to be transferred to a FHSA, RRSP or RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death.

• Marginal note:Distribution on death

  (14) If, as a consequence of the death of the holder of a FHSA, an amount is distributed in a taxation year from the FHSA to, or on behalf of, a beneficiary, the amount shall be included in computing the beneficiary’s income for the year.

• Marginal note:Deemed transfer or distribution

  (15) If an amount is distributed at any time from the FHSA of a deceased holder to the holder’s legal representative and a survivor of the holder is entitled to all or a portion of the amount in full or partial satisfaction of the survivor’s rights as a person beneficially interested under the deceased’s estate, the following rules apply:

  • (a) if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister;

  • (b) if a payment is made from the estate to the survivor, the payment is deemed for the purposes of subsection (14) to be a distribution to the survivor as a beneficiary to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; and

  • (c) for the purposes of subsection (14), the amount distributed to the legal representative from the FHSA is deemed to be reduced by the amounts designated in paragraphs (a) and (b).

• Marginal note:Arrangement ceasing to be a FHSA

  (16) An arrangement that was filed with the Minister as a FHSA ceases to be a FHSA at

  • (a) subject to paragraph (b), the earliest of the following times:

    • (i) the end of the maximum participation period of the last holder,

    • (ii) the end of the year following the year of the death of the last holder,

    • (iii) the time at which the arrangement ceases to be a qualifying arrangement, or

    • (iv) the time at which the arrangement is not administered in accordance with the conditions in subsection (2); or

  • (b) a later time specified by the Minister in writing.

• Marginal note:Rules applicable on FHSA cessation

  (17) If an arrangement ceases at a particular time to be a FHSA,

  • (a) subsections (3) and (3.1) do not apply in respect of that arrangement after the particular time;

  • (b) if the taxpayer who was the last holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all the property of the arrangement, determined at that time, is deemed for the purposes of subsection 146.6(6) to be received at that time by the taxpayer out of or under the FHSA;

  • (c) if the last holder is deceased at the particular time, the proportion of the fair market value of all the property of the arrangement that a beneficiary is entitled to, determined at that time, is deemed for the purposes of subsection 146.6(14) to be distributed at that time from the FHSA to the beneficiary;

  • (d) if the arrangement governs a trust,

    • (i) the trust is deemed to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time,

    • (ii) the trust is deemed to have acquired, at the particular time, each such property at a cost equal to that fair market value,

    • (iii) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time, and

    • (iv) a taxation year of the trust is deemed to begin at the particular time; and

  • (e) if the arrangement is a deposit or contract,

    • (i) the arrangement is deemed to have been disposed of immediately before the particular time for proceeds equal to its fair market value immediately before the particular time,

    • (ii) if the arrangement is an annuity contract, the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a FHSA, and

    • (iii) each person who has an interest or, for civil law, a right in the separate annuity contract or deposit, as the case may be, at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

• Marginal note:Regulations

  (18) The Governor in Council may make regulations requiring issuers of FHSAs to file information returns in respect of FHSAs.