Changes to investment objective, policy, andrestrictionsFor each fund, we will describe the investment objective and theinvestment policy, restrictions and risks applicable to that fund. Theinvestment policy and restrictions may change from time to time.<strong>Transamerica</strong> <strong>Life</strong> <strong>Canada</strong>’s investment policies comply with theCanadian <strong>Life</strong> and Health Insurance Association Inc. (CLHIA) Guidelineson Individual Variable Insurance Contracts Relating to Segregated<strong>Funds</strong>, as amended, and approved by the CLHIA Board of Directors andthe Canadian Council of Insurance Regulators as well as the Autoritédes marches financiers (AMF) Guidelines.We may also change the investment objective of a fund. A change tothe investment objective can be considered a fundamental change.Please see section the Fundamental Changes section.Availability of imaxxGIFsWe have the right to discontinue offering a fund, add, merge or splitfund(s) within the contract, and both a fund discontinuance and mergerare subject to the provisions of the CLHIA Guidelines on IndividualVariable Insurance Contracts and the Autorité des marches financiers(AMF) Guidelines in effect.This transaction may be a taxable event and subject to the fundamentalchange rule. Please see the fundamental change section.We reserve the right to refuse new or additional deposits to ortransfers into an imaxxGIF after sending 60 days written notice toyou. We may also re-open a previously closed imaxxGIF for newand additional deposits and transfers in. During the notice period,the owner shall not deposit or transfer new funds to the imaxxGIFdesignated as no longer available for new deposits or transfers, exceptfor transfers received within 5 days of the notice date.The value of the units cancelled or acquired to effect a fundtransfer or fund discontinuance is not guaranteed but varies inaccordance with fluctuations in the market value of the assetsof the particular fund.36
Other important informationClaims of creditorsUnder provincial insurance laws, this contract may be protected fromyour creditors if the beneficiary is the spouse, parent, child or grandchildof the annuitant (in Quebec, the beneficiary must be the married orcivil union spouse, the ascendant or descendant of the owner), or if thebeneficiary is named irrevocably. This description is of a generalnature only. There are important limitations with respect to thisprotection and this description does not include all possibleconsiderations. This summary is not intended to be, nor shouldit be construed to be, legal advice. You should consult your ownlegal advisor with respect to your particular circumstances.In addition, if your contract is a nominee-name contract with a brokeror dealer, creditor protection may not be available. Again, you shouldconsult with your legal advisor about your particular situation.Tax implicationsIn general, if your contract is issued to you as an RSP and registeredunder the Income Tax Act (<strong>Canada</strong>) or other applicable provincial taxlegislation, then your deposits are tax deductible, up to the limitspermitted under applicable tax laws unless the contract has beenacquired as a result of a transfer from another tax sheltered vehicle inwhich case the transfer may occur on a tax sheltered basis. No tax ispayable on income earned by the imaxxGIFs at the time it is earned.At maturity, however, the retirement income payments are fully taxableas income. The Income Tax Act (<strong>Canada</strong>) currently stipulates thatretirement income must commence no later than December 31 of theyear in which you attain the RSP age.In general, if the contract is issued as a RIF and registered under theIncome Tax Act (<strong>Canada</strong>) or other applicable provincial tax legislation,then no tax is payable on income earned by the imaxxGIFs at the timeit is earned. Retirement income payments and other payments under aRIF are fully taxable.If the contract is issued as a LIRA, RLSP or locked-in RSP, then thetax treatment is essentially the same as that described for an RSP.Similarly, if your contract is issued as a LIF/RLIF/PRIF, then the taxtreatment is essentially the same as that described for a RIF.If the guaranteed amount on the contract maturity date or guaranteedamount on the death benefit date is greater than the market value ofthe contract on the contract maturity date or death benefit date, asthe case may be, we will make up the difference. The difference iscalled “Top-Up Benefit”. The Top-Up Benefit amount that we pay onthe imaxx contract maturity benefit or the imaxx death benefit isconsidered to be part of the market value of the contract. It will betaxable to you, your beneficiary or your Estate unless it is transferredto another registered plan. We recommend that you consult yourtax advisor to consider the tax treatment of Top-Up Benefits in yourindividual circumstances. Based on our current understanding of theIncome Tax Act (<strong>Canada</strong>), we will report the top-up as a capital gain onnon-registered plans.In general, the direct transfer of monies from a contract issued as aRSP, RIF, LIRA, RLSP, locked-in RSP or LIF/PRIF/RLIF to another RSP, RIF,LIRA, RLSP, locked-in RSP or LIF/PRIF/RLIF will be tax sheltered. If thecontract is issued as an RSP, RIF, LIRA, RLSP, locked-in RSP or LIF/PRIF/RLIF, a surrender (withdrawal) of monies from the contract or otherpayment under the contract will be fully taxable.If your contract is a LIRA, locked-in RSP, RLSP, PRIF, RLIF or LIF, thenadditional information must be provided to you by us regarding yourcontract in accordance with the requirements of applicable pensionbenefits legislation. These requirements vary to some extent amongdifferent provinces (and for federally regulated employers) and thereforeyou should review the applicable endorsement for your contract.The Income Tax Act (<strong>Canada</strong>) provides that annuity contracts (includingannuity contracts which offer investments in segregated funds) may bequalified investments for RRIF and RRSP trusts. A contract that is notissued as a RSP, LIRA, RLSP, locked-in RSP, RIF or LIF/PRIF/RLIF may bea qualified investment for a RIF trust or RSP trust. You should consultyour advisor with respect to the status of your contract as a qualifiedinvestment in your circumstances.This section as well as other tax information contained in this folderis a summary only of the principal Canadian federal income taxconsiderations arising under the Income Tax Act (<strong>Canada</strong>) and theregulations thereunder to prospective owners of contracts who areresidents of <strong>Canada</strong> and who hold their policies as capital property andwho deal at arm's length with us. A policy will generally be consideredcapital property to a policyholder unless the policy holder either holdssuch policy in the course of carrying on a business or as an adventurein the nature of trade.The tax summary contained in this section as well as tax informationcontained elsewhere in this folder is based upon the provisions of theIncome Tax Act (<strong>Canada</strong>) and the regulations thereunder currently ineffect, upon all proposed amendments thereto publicly released bythe Department of Finance (<strong>Canada</strong>) prior to the date of printing thisfolder and upon our understanding of the administrative practices andpolicies of the <strong>Canada</strong> Revenue Agency, currently in effect. Except forsuch proposed amendments, this tax summary neither anticipates anychanges in law whether by legislative, governmental or judicial action,nor does it take into account provincial or foreign income tax legislationor considerations.This tax summary is of a general nature only and is not intendedto be, nor should it be construed to be, legal or tax advice to you.Therefore, you should consult your advisor with respect to yourparticular circumstances. You are urged to consult your advisorfor full particulars of the tax implications of establishing,amending and terminating registered plans under the IncomeTax Act (<strong>Canada</strong>) and the applicable provincial tax legislation.It is your responsibility as an investor in a registered plan todetermine the consequences to you under relevant income taxlegislation, and we assume no liability to you as a result ofmaking the registered plans available for investment.37