Subsection 304(1)
Paragraph 304(1)(c)
Subparagraph 304(1)(c)(iv)
Clause 304(1)(c)(iv)(B)
Administrative Policy
25 January 2002 External T.I. 2001-0114615 F - CONTRAT DE RENTE PRESCRITE ET FIDUCIE
In the course of a general discussion, CCRA stated:
Clause 304(1)(c)(iv)(B) … has the effect of requiring that annuity payments be payable for a fixed term where the holder of the contract is a trust other than a trust described in paragraph 104(4)(a) … .
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 304 - Subsection 304(3) - Paragraph 304(3)(a) | a beneficiary of a trust holding an annuity contract is not necessarily deemed to be the annuitant | 62 |
Clause 304(1)(c)(iv)(D)
Administrative Policy
6 October 2006 Roundtable, 2006-0197041C6 F - Rente prescrite et hypothèque mobilière
Can a prescribed annuity contract encumbered by a moveable hypothec be a prescribed annuity contract? CRA responded:
In the situation where the annuitant of a prescribed annuity contract grants, in a taxation year, a moveable hypothec on the prescribed annuity contract in order to secure a loan, it is our view that the moveable hypothec, in and of itself, would not prevent the conditions of I.T.R. 304(1)(c)(iv)(D) from being satisfied. Consequently, a prescribed annuity contract subject to a moveable hypothec would continue to be a prescribed annuity contract.
Subsection 304(2)
Paragraph 304(2)(b)
Administrative Policy
17 May 2013 CLHIA Roundtable, 2013-0481391C6 - Prescribed annuity contract
The correspondent described two annuity contracts that specified a lump-sum payment on the individual's death, provided that the sum of annuity payments received before death did not exceed the one-time premium paid at the outset. The only difference between the contracts was that the first specified larger annuity payments, so that the lump-sum was mathematically certain to become payable either before the individual turned 88 or not at all. Under the second, the sum could be payable as late 93 years of age. CRA stated that, provided the conditions of s. 304(2)(b) were otherwise met, the first contract would qualify as a prescribed annuity contract and the second would not.
Subsection 304(3)
Paragraph 304(3)(a)
Administrative Policy
25 January 2002 External T.I. 2001-0114615 F - CONTRAT DE RENTE PRESCRITE ET FIDUCIE
After paraphrasing Reg. 304(3)(a), CCRA stated:
[A] beneficiary of a trust who holds an annuity contract is not an annuitant under the annuity contract solely because of being a beneficiary of the trust. Consequently, paragraph 304(3)(a) of the Regulations will not have the effect of deeming the beneficiary to be the holder of the annuity contract.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 304 - Subsection 304(1) - Paragraph 304(1)(c) - Subparagraph 304(1)(c)(iv) - Clause 304(1)(c)(iv)(B) | requirement of fixed term where holder is a trust other than under s. 104(4)(a) | 50 |