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:
Can a communal organization be a personal trust?
Position TAKEN:
Yes, a communal organization can be a personal trust.
Reasons FOR POSITION TAKEN:
Similar position taken re:EPSP - see E9432135.
Deeming provision in 143(1) is not limited to specific sections of the Act - rather the trust would be deemed to exist for all purposes of the Act. There is nothing in the Act prohibiting it from being a personal trust.
June 9, 1995
T3 Programs Section Trusts Section
W.A. Mizuik - Chief
L. Holloway
Attention: Pat McLaughlin (613) 957-2104
951256
Communal Organization and Personal Trust
This is in reply to your memorandum dated May 5, 1995 requesting our opinion on whether a communal organization, deemed by subsection 143(1) of the Income Tax Act (the "Act") to be an inter vivos trust, meets the definition of a personal trust under subsection 248(1) of the Act.
Provided the conditions in paragraph (b) of the definition of personal trust are met by the communal organization, it would qualify as a personal trust. Whether a beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust is a question of fact, however there is nothing particular in the Act prohibiting a communal organization from being a personal trust. The fact that members of a congregation must devote their working lives to the activities of the congregation does not mean that their interests in the trust are acquired for consideration payable directly or indirectly to the trust.
T. Murphy
A/Section Chief
Trusts Section
Manufacturing Industries, Partnerships
and Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content