Canada Disability Savings Act (S.C. 2007, c. 35, s. 136)

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada Disability Savings Act.

Interpretation

Marginal note:Definitions

• 2 (1) The following definitions apply in this Act.

  Canada child benefit

  Canada child benefit means a deemed overpayment under Subdivision A.1 of Division E of Part I of the Income Tax Act. (allocation canadienne pour enfants)

  Canada Disability Savings Bond

  Canada Disability Savings Bond means the bond payable or paid under section 7. (bon canadien pour l’épargne-invalidité)

  Canada Disability Savings Grant

  Canada Disability Savings Grant means the grant payable or paid under section 6. (subvention canadienne pour l’épargne-invalidité)

  child tax benefit

  child tax benefit[Repealed, 2016, c. 12, s. 114]

  contribution

  contribution[Repealed, 2010, c. 12, s. 26]

  family income

  family income means the income determined by the Minister in accordance with the definition adjusted income in section 122.6 of the Income Tax Act by using the information provided by the Minister of National Revenue for that purpose. (revenu familial)

  first threshold

  first threshold for a particular year means the dollar amount referred to in paragraph 117(2)(a) of the Income Tax Act, as adjusted under that Act for the particular year. (premier seuil)

  phase-out income

  phase-out income for a particular year means

  • (a) if the particular year is before 2017, the amount determined by the formula

    A – (B/0.122)

    where

    A

    is the first threshold for the particular year, and

    B

    is the amount referred to in paragraph (a) of the description of F in subsection 122.61(1) of the Income Tax Act, as that subsection read on January 1, 2016, as adjusted under that Act for the particular year; or

  • (b) if the particular year is 2017 or any subsequent year, the dollar amount referred to in paragraph (a) of the description of Q in subsection 122.61(1) of the Income Tax Act, as adjusted under that Act for the particular year. (revenu de transition)

  second threshold

  second threshold for a particular year means the higher dollar amount referred to in paragraph 117(2)(b) of the Income Tax Act, as adjusted under the Act for the particular year. (deuxième seuil)

• Marginal note:Income Tax Act expressions

  (2) Unless a contrary intention appears, in this Act

  • (a) the expressions adjusted income, eligible individual and qualified dependant have the same meanings as in section 122.6 of the Income Tax Act;

  • (b) the expressions contribution, designated provincial program, DTC-eligible individual, holder, issuer, registered disability savings plan, specified year and specified disability savings plan have the same meanings as in section 146.4 of that Act; and

  • (c) any other expression has the same meaning as in that Act.

Purpose

Marginal note:Purpose

3 The purpose of this Act is to encourage long term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions.

Minister

Marginal note:Designation of Minister

4 The Governor in Council may, by order, designate a minister of the Crown to be “the Minister” for the purposes of this Act.

Marginal note:Informing Canadians

5 The Minister may take any measures that the Minister considers appropriate to make known to Canadians the existence of Canada Disability Savings Grants and Canada Disability Savings Bonds.

Payments

Marginal note:Canada Disability Savings Grants

• 6 (1) Subject to this Act and the regulations, on application, the Minister may, in respect of any contribution made to a registered disability savings plan of a beneficiary, pay a Canada Disability Savings Grant into the plan. The grant is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

• Marginal note:Amount of grant

  (2) The amount of a Canada Disability Savings Grant that may be paid for a particular year is equal to

  • (a) 300% of the part of the total contributions made in the particular year that is less than or equal to $500, and 200% of the part of those contributions that is more than $500 but less than or equal to $1,500, if the beneficiary is

    • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the second threshold for the particular year,

    • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is less than or equal to the second threshold for the particular year, or

    • (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

  • (b) 100% of the total contributions made in the particular year, up to a maximum of $1,000, in any other case.

• Marginal note:Deemed year of contribution

  (2.1) For the purposes of subsection (2), a contribution allocated to a year under subsection (2.2) is deemed to have been made in that year.

• Marginal note:Allocation of contribution

  (2.2) The Minister may allocate a contribution made to the beneficiary’s registered disability savings plan in a year after 2010, in parts — to the year in which it is actually made and to each of the previous 10 years that is after 2007 and in which the plan was not a specified disability savings plan (other than a year in which the plan became a specified disability savings plan) — in the following order:

  • (a) up to $500 to each year in which the beneficiary is one referred to in paragraph (2)(a), beginning with the earliest year, less any contributions allocated to the year in question;

  • (b) up to $1500 to each year in which the beneficiary is one referred to in paragraph (2)(a), beginning with the earliest year, less any contributions allocated to the year in question including those so allocated under paragraph (a); and

  • (c) up to $1000 to each year in which the beneficiary is not one referred to in paragraph (2)(a), beginning with the earliest year, less any contributions allocated to the year in question.

• Marginal note:Residency and DTC-eligibility

  (2.3) No contribution made to the plan in a year may be allocated to a previous year unless, during that previous year, the beneficiary was resident in Canada and a DTC-eligible individual.

• Marginal note:Limit

  (2.4) The Minister may allocate only the portion of contributions made to the plan in a year in respect of which, in accordance with subsection (2), a Canada Disability Savings Grant of up to $10,500 may be paid into the plan in that year.

• Marginal note:Contributions made before 2011

  (2.5) For the purposes of determining the contributions allocated to the year in question under any of paragraphs (2.2)(a) to (c), contributions made to the plan in 2008, 2009 or 2010 are considered to have been allocated to the year in which they were actually made.

• Marginal note:Family income

  (3) For the purposes of subparagraph (2)(a)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

• Marginal note:No determination for January

  (4) If there has been no determination of eligibility for a Canada child benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraph (2)(a)(ii) is the adjusted income used to determine the amount of a Canada child benefit for the first month in the particular year in respect of which eligibility has been established.

• Marginal note:Beneficiary born in December

  (5) In applying subsection (4) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

• (6) [Repealed, 2010, c. 12, s. 27]

• Marginal note:Lifetime cap

  (7) Not more than $70,000 in Canada Disability Savings Grants may be paid in respect of a beneficiary during their lifetime.

• Marginal note:Annual cap

  (8) Not more than $10,500 in Canada Disability Savings Grants may be paid in respect of a beneficiary in a year.

• Marginal note:Annual statement to plan holders

  (9) Once a year, the Minister shall cause each holder of a registered disability savings plan to be provided with a statement that sets out the amount of Canada Disability Savings Grants that may be paid for particular years on the basis of future contributions.

Marginal note:Canada Disability Savings Bonds

• 7 (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary

  • (a) for each year after the year in which the plan is entered into; and

  • (b) for the year in which the plan is entered into and for each of the previous 10 years

    • (i) that is after 2007,

    • (ii) during which the beneficiary was resident in Canada, and

    • (iii) for which a Canada Disability Savings Bond has not previously been paid.

• Marginal note:Terms and conditions

  (1.1) A Canada Disability Savings Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

• Marginal note:Amount of bond

  (2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is

  • (a) $1,000, if the beneficiary is

    • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the phase-out income for the particular year,

    • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is less than or equal to the phase-out income for the particular year, or

    • (iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

  • (b) the amount determined by the formula set out in subsection (4), if the beneficiary is

    • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year, or

    • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year.

• Marginal note:Family income

  (3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

• Marginal note:Formula

  (4) For the purposes of paragraph (2)(b), the formula is as follows:

  $1,000 - [$1,000 × (A - B)/(C - B)]

  where

  A

  is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii);

  B

  is the phase-out income for the particular year; and

  C

  is the first threshold for the particular year.

• Marginal note:Rounding of amounts

  (5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them.

• Marginal note:No determination for January

  (6) If there has been no determination of eligibility for a Canada child benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a Canada child benefit for the first month in the particular year in respect of which eligibility has been established.

• Marginal note:Beneficiary born in December

  (7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

• (8) [Repealed, 2010, c. 12, s. 28]

• Marginal note:Lifetime cap

  (9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime.