In finding that the estate of the taxpayer, who was the annuitant under RRSPs under which his former wife was the beneficiary, was liable to income tax on his death based on the value of the RRSP at that time, Schulman J.A. stated (at p.6338):
"The intention of Parliament is shown to be that no matter who the payee of the funds, for purposes of payment of tax, payment is deemed to have been made to the annuitant, in this case Mr. Klassen, immediately before his death. In this manner, income tax is assessed at the same rate, no matter who the payee happens to be."
Schulman J. also found (at p. 6338) "that the payee referred to in s. 153 is the person deemed to have been the recipient of the funds under s. 146(8.8) ... ."