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Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)

Assented to 2007-12-14

PART 4

DISABILITY SAVINGS

Amendments Relating to Income Tax

Marginal note:R.S., c. 1 (5th Supp.)

Income Tax Act

101. Paragraph 4(3)(a) of the Income Tax Act is replaced by the following:

  • (a) subject to paragraph (b), all deductions permitted in computing a taxpayer’s income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and

102. Subsection 18(11) of the Act is amended by striking out the word “or” at the end of paragraph (g), by adding the word “or” at the end of paragraph (h) and by adding the following after paragraph (h):

  • (i) making a contribution to a registered disability savings plan,

103. Clause 40(2)(g)(iv)(A) of the Act is replaced by the following:

  • (A) a trust governed by a deferred profit sharing plan, an employees profit sharing plan, a registered disability savings plan or a registered retirement income fund under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary, or

104. Subsection 56(1) of the Act is amended by adding the following after paragraph (q):

  • Marginal note:Registered disability savings plan payments

    (q.1) amounts in respect of a registered disability savings plan required by section 146.4 to be included in computing the taxpayer’s income for the year;

105. Section 60 of the Act is amended by striking out the word “and’’ at the end of paragraph (x), by adding the word “and” at the end of paragraph (y) and by adding the following after paragraph (y):

  • Marginal note:Repayment under the Canada Disability Savings Act

    (z) the total of all amounts each of which is an amount paid in the taxation year as a repayment, under the Canada Disability Savings Act, of an amount that was included because of section 146.4 in computing the taxpayer’s income for the taxation year or a preceding taxation year.

106. Subsection 74.5(12) of the Act is amended by striking out the word “or” at the end of paragraph (a.1) and by adding the following after that paragraph:

  • (a.2) as a payment of a contribution under a registered disability savings plan; or

107. Paragraph 75(3)(a) of the Act is replaced by the following:

  • (a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a retirement compensation arrangement;