Tax wiki
s. 207.05
PART XI.01 — Taxes in Respect of Registered Plans
Tax payable in respect of advantage
Not yet annotated · Text current to 2026-06-21 · section last amended 2017-12-14
Current text
A tax is payable under this Part for a calendar year if, in the year, an advantage in relation to a registered plan is extended to, or is received or receivable by, the controlling individual of the registered plan, a trust governed by the registered plan, or any other person who does not deal at arm’s length with the controlling individual.
Amount of tax payable
(2)The amount of tax payable in respect of an advantage described in subsection (1) is
in the case of a benefit, the fair market value of the benefit;
in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and
in the case of a registered plan strip, the amount of the registered plan strip.
Liability for tax
(3)Each controlling individual of a registered plan in connection with which a tax is imposed under subsection (1) is jointly and severally, or solidarily, liable to pay the tax except that, if the advantage is extended by the issuer, carrier or promoter of the registered plan or by a person with whom the issuer, carrier or promoter is not dealing at arm’s length, the issuer, carrier or promoter, and not the controlling individual, is liable to pay the tax.
Transitional rule
(4)If an individual so elects before March 2, 2013 in prescribed form, subsection (1) does not apply in respect of any advantage that is an amount included in the calculation of the transitional prohibited investment benefit of the individual for a taxation year provided that the transitional prohibited investment benefit
is paid to the individual, from a RRIF or RRSP of the individual, on or before the later of April 2, 2013 and the day that is 90 days after the end of the taxation year; and
is not paid by way of transfer to another RRIF or RRSP of the individual.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2013-12-12 to 2017-12-13:
Show the text in force 2013-12-12 to 2017-12-13
Tax payable in respect of advantage
207.05 (1) A tax is payable under this Part for a calendar year if, in the year, an advantage in relation to a registered plan is extended to, or is received or receivable by, the controlling individual of the registered plan, a trust governed by the registered plan, or any other person who does not deal at arm’s length with the controlling individual.
Amount of tax payable
(2) The amount of tax payable in respect of an advantage described in subsection (1) is
(a) in the case of a benefit, the fair market value of the benefit;
(b) in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and
(c) in the case of an RRSP strip, the amount of the RRSP strip.
Liability for tax
(3) The controlling individual of a registered plan in connection with which a tax is imposed under subsection (1) is liable to pay the tax except that, if the advantage is extended by the issuer or carrier of the registered plan or by a person with whom the issuer or carrier is not dealing at arm’s length, the issuer or carrier, and not the controlling individual, is liable to pay the tax.
Transitional rule
(4) If an individual so elects before March 2, 2013 in prescribed form, subsection (1) does not apply in respect of any advantage that is an amount included in the calculation of the transitional prohibited investment benefit of the individual for a taxation year provided that the transitional prohibited investment benefit
(a) is paid to the individual, from a RRIF or RRSP of the individual, on or before the later of April 2, 2013 and the day that is 90 days after the end of the taxation year; and
(b) is not paid by way of transfer to another RRIF or RRSP of the individual.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2010, c. 25, s. 59
- 2011, c. 24, s. 66
- 2013, c. 40, s. 76
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 207.05 links to the one before it.
Enacting and amending legislation
- 2008, c. 28, s. 31; 2010, c. 25, s. 59; 2011, c. 24, s. 66; 2013, c. 40, s. 76; 2017, c. 33, s. 70
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Referred to in
References are generated from the statutory text and list other sections of the Act only.
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 207.05.