Tax wiki
s. 207.71
PART XI.3 — Tax in Respect of Retirement Compensation Arrangements
Definitions
Not yet annotated · Text current to 2026-06-21 · section last amended 2024-06-20
Current text
The following definitions apply in this section.
eligible employer means an employer that paid an amount, or that has a predecessor employer (as defined in subsection 8500(1) of the Income Tax Regulations) that paid an amount, before March 28, 2023, under a specified arrangement that is an excluded contribution. (employeur admissible)
specified refundable tax of a specified arrangement at the end of a taxation year means the amount, if any, determined by the formula
A − B
where
is the amount elected under paragraph (2)(c); and
is the total of all amounts, if any, each of which is a refund as determined under subsection (3), in respect of a preceding taxation year. (impôt remboursable déterminé)
Election
(2)Subsection (3) applies to a specified arrangement if
an eligible employer, or the custodian of the arrangement, paid a refundable tax under this Part with respect to an excluded contribution made under the arrangement before March 28, 2023;
the eligible employer files an election with the Minister in prescribed form and manner; and
the election includes an elected amount that does not exceed the total amount of refundable tax paid with respect to excluded contributions made under the arrangement before March 28, 2023.
Amount of refund
(3)If this subsection applies to a specified arrangement, the Minister may refund to the eligible employer, or to the custodian of the arrangement, an amount claimed on the return for a taxation year described in subsection 207.7(3), not exceeding the lesser of
50% of all retirement benefits paid in the taxation year directly by the eligible employer for the benefit of beneficiaries whose retirement benefits were secured under the specified arrangement with a letter of credit or surety bond issued by a financial institution, and
the specified refundable tax of the specified arrangement at the end of the taxation year.
Refundable tax definition
(4)If an eligible employer claims a refund under subsection (3) for a taxation year, paragraph (c) of the definition refundable tax in subsection 207.5(1) is to be read as follows:
the total of
50% of all amounts paid as distributions to one or more persons (including amounts that are required by paragraph 12(1)(n.3) to be included in computing the recipient’s income) under the arrangement while it was a retirement compensation arrangement and before the end of the year, other than a distribution paid where it is established, by subsequent events or otherwise, that the distribution was paid as part of a series of payments and refunds of contributions under the arrangement, and
all amounts determined under subsection 207.71(3) in respect of the specified arrangement for the year and a preceding year;
Source: Justice Laws Website. Not an official version.
Historic text
This section has not been amended since it was enacted (2024, c. 15. s. 57), so there is no earlier version.
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 207.71 links to the one before it.
Enacting and amending legislation
- 2024, c. 15. s. 57
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
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 207.71.