Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Does a step-child of natural child qualify as a grandchild in 108(1)(g)(iii)?
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
Issue previously decided in files: 932535, 920016 and 5-7742.
XXXXXXXXXX 941128
Attention: XXXXXXXXXX
May 17, 1994
Dear Sirs/Mesdames:
Re: Definition of Preferred Beneficiary
This is in reply to your letter of April 21, 1994 wherein you requested our views on whether a step-child of a natural child of a settlor would qualify as a preferred beneficiary.
The term preferred beneficiary is defined in paragraph 108(1)(g) of the Income Tax Act S.C. 1970-71-71, c.63 as amended consolidated to June 10, 1993 (the "Act"). Subparagraph (iii) of that definition includes a grandchild of the settlor of the trust.
In our opinion the word grandchild in subparagraph 108(1)(g)(iii) of the Act includes a step-grandchild.
This opinion is not an advance income tax ruling. It represents our opinion of the law as it generally applies and is provided in accordance with the procedures outlined in paragraph 21 of Information Circular 70-6R2.
Yours truly,
for Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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