Adequate records have to be kept by individuals, partnerships, corporations, organizations and trusts, as identified below:
persons carrying on a business or engaged in commercial activity;
persons required to pay or collect taxes or other amounts such as payroll deductions and goods and services tax/harmonized sales tax (GST/HST) under the Income Tax Act, the Excise Tax Act, the Excise Act 2001, the Employment Insurance Act, the Canada Pension Plan, the Air Travellers Security Charge Act and the Softwood Lumber Products Export Charge Act, 2006 (SLPECA);
persons required to file an income tax or GST/HST return;
persons who apply for GST/HST rebates or refunds;
payroll service providers;
a registered agent of a registered political party;
an official agent for a candidate in a federal election;
agents authorized under the Senate Appointment Consultation Act;
school authorities; and
qualified donees such as:
a registered charity;
a registered Canadian amateur athletic association;
a housing corporation resident in Canada and exempt from tax under Part 1 of the ITA because of paragraph 149(1)(i) that has applied;
a municipality in Canada;
a municipal or public body performing a function of government in Canada that has applied;
a university outside Canada that is prescribed to be a university the student body of which ordinarily includes students from Canada; or
a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift.
You (the pensioner) may be able to jointly elect with your spouse or common-law partner (the pension transferee) to split your eligible pension income if you meet all of the requirements.
What is Eligible pension income?
Eligible pension income is generally the total of the following amounts received by the pensioner in the year (these amounts also qualify for the pension income amount):
- the taxable part of life annuity payments from a superannuation or pension fund or plan; and
- if they are received as a result of the death of a spouse or common-law partner, or if the pensioner is 65 years of age or older at the end of the year:
- annuity and registered retirement income fund (including life income fund) payments; and
- Registered Retirement Savings Plan (RRSP) annuity payments.
Pension income that is not eligible
The following amounts received by the pensioner are not eligible for pension income splitting:
- Old Age Security payments;
- Canada Pension Plan, Quebec Pension Plan; and
- Amounts received under a retirement compensation arrangement.
Variable pension benefits paid from a money purchase provision of a Registered Pension Plan are not considered life annuity payments and do not qualify unless the pensioner is age 65 or older at the end of the year or the variable benefits are received as a result of the death of a spouse or common-law partner.