The income tax that is withheld at source from the eligible pension income will have to be allocated from the pensioner to the spouse or common-law partner (the pension transferee) in the same proportion as the pension income is allocated. For example, if you (the pensioner) allocate 50% of your eligible pension income to your spouse or common-law partner (the pension transferee), 50% of the income tax withheld at source on that pension income must also be allocated to your spouse or common-law partner.
If you (the pensioner) and your spouse or common-law partner (the pension transferee) have jointly elected to split your eligible pension income, follow the instructions at Step 5 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 437 of your and your spouse's or common-law partner's returns.
If your (the pensioner) information slip(s) includes income tax deducted for both eligible and non-eligible pension income, you must calculate and include on line M of Form T1032 the part of income tax deducted that relates only to the eligible pension income entered on line A.
The CRA cannot approve a reduction of tax withheld at source based on an election to split pension income.