Décary,
J.A.:—
In
February
1987,
the
applicant
paid
$6,500
into
his
wife’s
registered
retirement
savings
plan
(RRSP).
As
he
was
authorized
to
do
by
subsection
146(5.1)
of
the
Income
Tax
Act
("the
Act"),
he
deducted
this
amount
from
his
income
for
the
1986
taxation
year.
In
1989
his
wife
withdrew
this
amount
from
her
RRSP.
Subsection
146(8.3)
of
the
Act,
as
it
read
in
1989,
provides
that
when
a
taxpayer's
spouse,
during
a
taxation
year,
withdraws
an
amount
in
the
circumstances
of
the
case
at
bar:
.
.
.
there
shall
be
included
at
that
time
in
computing
the
taxpayer's
income
for
the
year
.
.
.
the
aggregate
of
all
amounts
each
of
which
is
a
premium
paid
by
the
taxpayer
in
the
year
or
in
one
of
the
two
immediately
preceding
taxation
years
to
a
registered
retirement
savings
plan
under
which
the
taxpayer's
spouse
was
the
annuitant
at
the
time
the
premium
was
paid.
As
the
redemption
by
the
wife
took
place
in
1989
and
the
payment
of
the
premiums
by
the
taxpayer
was
in
1987,
it
follows
as
if
one
refers
to
the
taxpayer's
1989
year
that
the
premiums
were
paid
in
one
of
the
two
immediately
preceding
taxation
years
and
should
be
added
to
the
taxpayer's
income.
The
wording
of
the
subsection
in
question
is
clear.
The
calculation
is
based
on
the
taxation
year
in
which
the
taxpayer
paid
the
premiums,
not
the
taxation
year
in
which
he
deducted
those
premiums.
The
applicant
would
like
to
see,
instead
of
the
words"
premium[s]
paid”,
the
words"
premiums
deducted”.
The
wording
of
the
Act
simply
does
not
permit
such
a
reading.
Additionally,
as
subsection
146(8.3)
only
applies
"to
a
registered
retirement
savings
plan
under
which
the
taxpayer's
spouse
was
the
annuitant
at
the
time
the
premium
was
paid”,
the
applicant
submitted
that
this
condition
is
not
met
in
his
case,
as
he
said
no
premium
was
deducted
for
1987.
That
is
not
the
meaning
of
these
words,
which
simply
require
that
during
a
given
year,
here
1986,
which
has
nothing
to
do
with
the
taxation
year
at
issue,
namely
1989,
the
premiums
were
deductible.
We
are
of
the
opinion
that
the
decision
of
Judge
Lamarre-Proulx
of
the
Tax
Court
was
correct.
The
application
for
judicial
review
will
therefore
be
dismissed
Email this Content