Canada Disability Savings Act

An Act to encourage savings for persons with disabilities [Enacted by section 136 of chapter 35 of the Statutes of Canada, 2007, in force December 1, 2008, see SI/2008-63.] Short title This Act may be cited as the Canada Disability Savings Act. Definitions The following definitions apply in this Act. 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 means the bond payable or paid under section 7. (bon canadien pour l’épargne-invalidité) Canada Disability Savings Grant means the grant payable or paid under section 6. (subvention canadienne pour l’épargne-invalidité) child tax benefit[Repealed, 2016, c. 12, s. 114] contribution[Repealed, 2010, c. 12, s. 26] family income means the income determined by the Minister in accordance with the definition adjusted income in section 122.6 of the Income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 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 for a particular year means if the particular year is before 2017, the amount determined by the formula is the first threshold for the particular year, and 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 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 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) Income Tax Act expressions Unless a contrary intention appears, in this Act the expressions adjusted income, eligible individual and qualified dependant have the same meanings as in section 122.6 of the Income Tax Act; 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 any other expression has the same meaning as in that Act. Purpose 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. Designation of Minister The Governor in Council may, by order, designate a minister of the Crown to be “the Minister” for the purposes of this Act. Informing Canadians 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. Canada Disability Savings Grants 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. Amount of grant The amount of a Canada Disability Savings Grant that may be paid for a particular year is equal to 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 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, 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 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 100% of the total contributions made in the particular year, up to a maximum of $1,000, in any other case. Deemed year of contribution 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. Allocation of contribution 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: 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; 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 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. Residency and DTC-eligibility 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. Limit 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. Contributions made before 2011 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. Family income 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. No determination for January 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. Beneficiary born in December 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”. [Repealed, 2010, c. 12, s. 27] Lifetime cap Not more than $70,000 in Canada Disability Savings Grants may be paid in respect of a beneficiary during their lifetime. Annual cap Not more than $10,500 in Canada Disability Savings Grants may be paid in respect of a beneficiary in a year. Annual statement to plan holders 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. Canada Disability Savings Bonds 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 for each year after the year in which the plan is entered into; and for the year in which the plan is entered into and for each of the previous 10 years that is after 2007, during which the beneficiary was resident in Canada, and for which a Canada Disability Savings Bond has not previously been paid. Terms and conditions 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. Amount of bond The amount of a Canada Disability Savings Bond that may be paid for a particular year is $1,000, if the beneficiary is 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, 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 the amount determined by the formula set out in subsection (4), if the beneficiary is 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 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. 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. Formula For the purposes of paragraph (2)(b), the formula is as follows: 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); is the phase-out income for the particular year; and is the first threshold for the particular year. Rounding of amounts 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. 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. 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”. [Repealed, 2010, c. 12, s. 28] Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime. Payment Neither a Canada Disability Savings Grant nor a Canada Disability Savings Bond may be paid unless the Minister is provided with, as the case may be, the Social Insurance Number of the beneficiary, the Social Insurance Number of the eligible individual referred to in subparagraph 6(2)(a)(ii) or 7(2)(a)(ii) or (b)(ii), and the business number of the department, agency or institution that maintains the beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act for a month in the particular year; the beneficiary is resident in Canada, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made; and the plan is not a specified disability savings plan, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made. Interest The Minister may, in prescribed circumstances, pay interest, calculated as prescribed, in respect of Canada Disability Savings Grants or Canada Disability Savings Bonds. Payments out of CRF All amounts payable by the Minister under this Act shall be paid out of the Consolidated Revenue Fund. Waiver On application made by the holder or the beneficiary, to avoid undue hardship, the Minister may, in prescribed circumstances, waive any of the prescribed requirements of this Act or the regulations that relate to the payment of any amount or the repayment of any amount or earnings generated by that amount. The application must be in the form and manner approved by the Minister. Debt due to Her Majesty An amount required to be repaid under this Act, the regulations or an agreement entered into under this Act constitutes a debt due to Her Majesty in right of Canada as of the date on which the Minister issues a written notice to the person responsible for the debt indicating the amount that is due. Recovery of payments and interest Debts due to Her Majesty in right of Canada under this Act are recoverable, including in the Federal Court or any other court of competent jurisdiction, by the Minister of National Revenue. Deduction and set-off Despite subsection 14(1), debts due to Her Majesty in right of Canada under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable by Her Majesty in right of Canada to the person responsible for the debt, other than an amount payable under section 122.61 of the Income Tax Act. Deduction and set-off by the Minister Despite subsections 12(2) and 14(1), an amount required to be repaid by a person under this Act, the regulations or an agreement entered into under this Act may be recovered by the Minister at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable under this Act to the person. Limitation or prescription period Subject to this section, no action or proceedings shall be taken to recover debts due to Her Majesty in right of Canada under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the Minister issues the notice referred to in subsection 12(1). Acknowledgement of liability If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4), the time during which the limitation or prescription period has run before the acknowledgement does not count in the calculation of that period. Acknowledgement after expiry of limitation or prescription period If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (2) and (5), be brought within six years after the date of the acknowledgement. Types of acknowledgements An acknowledgement of liability means a written promise to pay the money owing, signed by the person or his or her agent or other representative; a written acknowledgement of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; a part payment by the person or his or her agent or other representative of any money owing; or any acknowledgement of the money owing made by the person, his or her agent or other representative or the trustee or director in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. Limitation or prescription period suspended The running of a limitation or prescription period is suspended during the period beginning on the day on which the Minister receives an application under section 11 and ending on the day on which the Minister issues a decision; the period beginning on the day on which the Minister of National Revenue receives an application concerning subsection 146.4(12) of the Income Tax Act and ending on the day on which that Minister makes a decision; the period beginning on the day on which an application for judicial review, with respect to a decision of the Minister to issue a notice under subsection 12(1), is filed and ending on the day on which the final decision is rendered; and any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover debts due to Her Majesty in right of Canada under this Act. Enforcement proceedings This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. Collection of information If the Minister considers it advisable, the Minister may, subject to conditions agreed on by the Minister and the Minister of National Revenue, collect any prescribed information for the administration of section 146.4 and Part XI of the Income Tax Act. Notification by Minister of National Revenue When the Minister of National Revenue considers that a registered disability savings plan is no longer registered by virtue of the application of paragraph 146.4(10)(a) of the Income Tax Act, the Minister of National Revenue shall as soon as possible notify the Minister in writing. Regulations The Governor in Council may make regulations for carrying out the purpose and provisions of this Act and, without limiting the generality of the foregoing, may make regulations establishing requirements that must be met by a registered disability savings plan and by persons in respect of the plan before a Canada Disability Savings Grant or a Canada Disability Savings Bond may be paid in respect of the plan; establishing the manner of determining the amount of a Canada Disability Savings Grant that may be paid in respect of contributions made to registered disability savings plans or the amount of a Canada Disability Savings Bond that may be paid into those plans; specifying terms and conditions to be included in agreements entered into between an issuer of a registered disability savings plan and the Minister; governing the repayment of any amount paid under this Act or earnings generated by those amounts including providing for the circumstances under which an amount or earnings must be repaid and the manner of calculating such an amount or earnings; specifying the circumstances in which the Minister may pay interest on Canada Disability Savings Grants or Canada Disability Savings Bonds as well as the manner of calculating interest; specifying the requirements of this Act or the regulations relating to the payment of any amount or the repayment of any amount or earnings generated by that amount that may be waived by the Minister to avoid undue hardship; specifying the circumstances in which the Minister may waive the requirements provided under paragraph (f); specifying information that the Minister may collect under section 15; and requiring issuers to keep any record, book or other document containing any information relevant to the administration or enforcement of this Act or the regulations, and respecting where, how and how long it is to be kept. For the purposes of the Income Tax Act and the Canada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred. For the purposes of subsection (1), specified RDSP event means an event occurring after 2008 and before March 3, 2009 that establishes a disability savings plan as defined in subsection 146.4(1) of the Income Tax Act; satisfies conditions in subsection 146.4(2) of the Income Tax Act; establishes a registered disability savings plan as defined in subsection 146.4(1) of the Income Tax Act for a beneficiary who is, in respect of the 2008 taxation year, a DTC-eligible individual as defined in subsection 146.4(1) of the Income Tax Act and who was resident in Canada at the end of that year; is the making of any contribution to the registered disability savings plan; satisfies the requirement in paragraph 3(b) of the Canada Disability Savings Regulations; or is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made. Subsections (1) to (3) apply to the 2009 and subsequent years. Subsections (1) and (2) apply to the 2009 and subsequent years. Subsections (1) to (4) apply to the 2009 and subsequent years. Canada Disability Savings Grant for 2008 For the purposes of calculating the amount of a Canada Disability Savings Grant that may be paid for 2008 under section 6 of the Canada Disability Savings Act, subparagraphs 6(2)(a)(i) and (ii) and subsection 6(6) of that Act are to be read as they did on December 31, 2008. Canada Disability Savings Bond for 2008 For the purposes of calculating the amount of a Canada Disability Savings Bond that may be paid for 2008 under section 7 of the Canada Disability Savings Act, subparagraphs 7(2)(a)(i) and (ii) and (b)(i) and (ii), the descriptions of B and C in subsection 7(4) and subsection 7(8) of that Act are to be read as they did on December 31, 2008.