Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.

Increase in value only/debt assumption (p. 59)

[T]he CRA [in 2015-0596841E5] appears to be of the view that a beneficial interest in a trust may...

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GRE may terminate before 36 mos. (p. 62)

It appears that the 36-month period is an upper limit; therefore, an estate ceases to be a graduated rate...

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Multiple testamentary trusts under will (p. 63)

[T]he estate of a deceased individual and other trusts funded from the estate generally qualify as...

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Purpose (p. 64)

[T]his rule [in para. (d)] was implemented to prevent beneficiaries in the top marginal tax bracket from lending money to a...

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Waiver as contribution (p. 66)

On the basis of the ruling in Greenberg Estate [97 DTC 1380], the CRA has stated that the waiver of income by a...

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General effect of formula (p. 70)

[T]he amount: of the recovery tax is calculated in accordance with a complicated formula in paragraph 122(1) (c)...

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Satisfaction of redemption requirement (p. 72)

[T]he CRA has ruled that the redemption requirement was satisfied when a trust indenture provided...

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Public benefit requirement (p. 81)

There are two distinct components to the public benefit requirement. First, in general an objectively...

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Non-application to bare trusts (p. 86)

[T]he non-applicability of the Act to bare trusts has been recognized by the courts. [fn 107: …Brookview...

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Right of spouse to enforce payment of income (pp. 90-1)

It seems that the spouse or common-law partner must each year be able to enforce payment...

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Waiver by spouse of entitlement to income under spousal trust (p. 92)

The terms of a spousal or common-law partner trust may include a provision...

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Joint spousal trust (p. 100)

Paragraph 73(1.01)(c) might seem to indicate that only one spouse can transfer property to a particular joint spousal...

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Numerical example of refundable tax (pp. 104-5)

Assume that a qualifying environmental trust has a single beneficiary in a taxation year and earns...

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Overview

[U]nlike mutual funds, segregated funds cannot be structured as trusts because a life insurer is prohibited from acting as a trustee in...

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Services rendered to subsidiary (p. 116)

[P]art XI.3 imposes a refundable tax on an RCA equal to 50 percent of the amount of any contributions to...

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