Cases
British Columbia Investment Management Corp. v. Canada (A. G.), 2018 BCCA 47, aff'd 2019 SCC 63
bcIMC was a BC Crown agent which was formed to manage and hold investments for the provincial pension plans. The governing Act created a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Constitution Act, 1867 - Section 125 | imposition of GST on investment assets held by a provincial Crown agent would have been prohibited by its governmental immunity but for the reciprocal taxation agreement | 515 |
| Tax Topics - Excise Tax Act - Section 122 | deeming services provided by B.C. Crown agent in managing assets held in trust trenched on B.C. crown immunity | 249 |
| Tax Topics - Excise Tax Act - Section 267.1 - Subsection 267.1(5) - Paragraph 267.1(5)(a) | services of trustees of managing assets held in trust would not be supply in absence of s. 267.1(5)(a) | 170 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 19 | enforcement of a reciprocal taxation agreement was possible pursuant to the Federal Courts Act | 246 |
Canada v. Sommerer, 2012 DTC 5126 [at 7219], 2012 FCA 207
Before allowing the taxpayer's appeal from an assessment made on the basis that s. 75(2) applied to attribute a capital gain realized by an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(5) | 84 | |
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | does not apply to FMV purchases | 236 |
| Tax Topics - Treaties - Income Tax Conventions | treaty applies to economic double taxation | 356 |
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | attributed gain not included | 415 |
Fundy Settlement v. Canada, 2012 DTC 5063 [at 6881], 2012 SCC 14, [2012] 1 S.C.R. 520, aff'g sub nom St. Michael Trust Corp. v. The Queen, 2010 DTC 5189 [at 7361], 2010 FCA 309, aff'g sub nom Garron v. The Queen, 2009 DTC 1568, 2009 TCC 450
A Barbados-resident corporation was the trustee of two trusts. The Court found that the trusts were resident in Canada because that is where the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | central management and control test for trust residence | 262 |
Antle v. Canada, 2010 DTC 5172 [at 7304], 2010 FCA 280
A purported Barbados trust that was used in connection with a tax plan to avoid Canadian capital gains tax on the disposition of shares of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Sham | trust deed did not reflect the factual expectatons of the settler and trustee | 223 |
See Also
Goldman v. The Queen, 2021 TCC 13
The taxpayer’s mother, Ms. Goldman, orally told the taxpayer that she was designating the taxpayer (who was also appointed as the executor) as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | s. 160(1) did not apply to a transfer to an individual qua trustee of a valid oral trust | 483 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | trustee had no liability for application of s. 160(1) to transfer to the trust, absent s. 159(3) | 215 |
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(3) | CRA could have assessed taxpayer qua trustee, for the s. 160(1) liability of her trust arising on its settlement, under s. 159(3) given the distribution of the corpus without a certificate | 193 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 49 - Subsection 49(1) | “taking note” of a fact pleaded by the taxpayer is not a permitted Crown response | 131 |
Canada (Attorney General) v. British Columbia Investment Management Corp., 2019 SCC 63
BCI was a BC Crown agent which was formed to manage and hold investments for the provincial pension plans. The governing Act (the “PSPSA”) and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Constitution Act, 1867 - Section 125 | ETA taxes that would be borne by portfolio of which a Crown agent was legal owner would contravene s. 125 | 298 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | “trust” interpreted in accordance with its common law meaning | 349 |
| Tax Topics - Excise Tax Act - Section 122 | s. 122 does not preclude imposition of collection duties | 302 |
Milne Estate (Re), 2019 ONSC 579
Each of the late Mr. and Mrs. Milne had a primary will, which dealt with property for which the executors determined that grant of authority by a...
Moules Industriels (C.H.F.G.) Inc. v. The Queen, 2018 TCC 85
The taxpayers, in connection with arguing (at para. 62) that the reference in the preamble to s. 256(1.2)(f)(ii) to “shares … owned .. by a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) - Subparagraph 256(1.2)(f)(ii) | a numerical cap on trustees’ discretion to allocate income or capital did not stop tainting under s. 256(1.2)(f)(ii) | 245 |
Canada v. Cheema, 2018 FCA 45
In order to satisfy lender requirements, the individual taxpayer persuaded a friend (Dr. Akbari) to jointly sign an agreement for the purchase of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(b) | third party who did not intend to occupy was liable at the purchase agreement time | 355 |
| Tax Topics - Excise Tax Act - Section 133 | s. 133 deemed an acquisition of future home on co-purchaser's signing purchase agreement, notwithstanding that no beneficial interest received on closing | 268 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | Court should not depart from usual interpretation principles in seeking a sensible result | 128 |
| Tax Topics - Statutory Interpretation - Ease of Administration | interpretation that favours administrative efficiency is to be favoured | 206 |
| Tax Topics - Excise Tax Act - Regulations - New Harmonized Value-Added Tax System Regulations, No. 2 - Section 40 | co-purchaser with no intended beneficial interest was required to satisfy ETA s. 254(2) rules | 171 |
Barclays Wealth Trustees (Jersey) Limited v. Commissioners for Her Majesty's Revenue and Customs, [2017] EWCA Civ 1512
On June 21, 2001, an Ireland-domiciled individual (“Dreelan”) paid £100 to a New Jersey trustee (with successors, the “Trustee”) to hold...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | trreat as real the inevitable incidents of the deemed fiction | 233 |
Markou v. The Queen, 2016 TCC 137
In connection with a leveraged donation arrangement, the taxpayers in the lending agreement directed the lender (“Capital”) to deliver the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | TCC has jurisdiction to determine existence of equitable remedy | 96 |
| Tax Topics - General Concepts - Payment & Receipt | funds in leveraged donation scheme essentially advanced by lender directly to charity | 108 |
Advocate Gen. for Scotland v. Murray Group Holdings Ltd., [2015] CSIH 77, [2015] BTC 36 (Ct. of Ses. (Inner House, 2nd)), aff'd sub nomine RFC 2012 Plc (formerly The Rangers Football Club Plc) v Advocate General for Scotland (Scotland) [2017] UKSC 45
In the course of finding that the (Scottish) Inner Court was entitled to decide on questions of English trust law that were relevant to a tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | income derived from service is assessable even where agreed to be redirected to 3rd party | 329 |
| Tax Topics - General Concepts - Evidence | Scottish Court of Session entitled to deal with questions of English law | 300 |
Mariano v. The Queen, 2015 DTC 1209 [at 1331], 2015 TCC 244
The taxpayers were participants in leveraged donation transactions which included gifts of courseware licences to a Canadian–resident Trust with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | courseware licences valued at modest initial cost, given relevant wholesale market and depressive effect of huge volumes purchased | 303 |
| Tax Topics - General Concepts - Ownership | no acquisition of unascertained property | 76 |
| Tax Topics - General Concepts - Sham | taxpayer involvement in deceit unnecessary | 375 |
| Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) | delegation of power of appointment to promoter not authorized | 238 |
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | no gift where no intent for impoverishment and where gifted property not yet identified | 566 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(35) | attempted use of initial gift to step-up ACB under s. 69(1)(c) | 262 |
Al-Hossain v. The Queen, 2014 TCC 379
To secure mortgage financing for his home purchase, the appellant's friend ("Khandaker") agreed to co-sign the mortgage documents and to be placed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) | co-owner was not occupant and bare trust declaration was too late | 282 |
| Tax Topics - General Concepts - Effective Date | bare trust declaration was too late | 138 |
Sheila Holmes Spousal Trust v. Canada (Attorney General), 2013 ABQB 489
The federal Minister assessed the settlor of the appellant trust on the basis that the trust's taxable capital gain and investment income were...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | superior court declines jurisdiction in tax dispute | 215 |
Peragine v. The Queen, 2012 DTC 1287 [at 3887], 2012 TCC 348
Webb J. found that the taxpayer held a real property as an agent (and hence as a bare trustee) of his brother. The evidence consistently showed...
Lipson v. The Queen, 2012 DTC 1064 [at 2796], 2012 TCC 20
The taxpayers received a number of capital distributions from the liquidator of their mother's "succession" (a Quebec estate), but only filed a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(3) | 184 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property | 184 |
Fourney v. The Queen, 2012 DTC 1019 [at 2575], 2011 TCC 520
Seeking to protect herself from being sued by her brother, the taxpayer transferred title to all her real properties for no consideration to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | 191 | |
| Tax Topics - General Concepts - Corporate/Separate Personality | 257 | |
| Tax Topics - General Concepts - Ownership | presumption of resulting trust where property transfer for no consideration | 257 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | line codes in electronic filings were incomprehensible to taxpayer | 300 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | rebuttable presumption of resulting trust on transfer for no consideration | 257 |
Canpar Developments Inc. v. The Queen, 2011 GSTC 118, 2011 TCC 353 (Informal Procedure)
The taxpayer's transfer of a real property to its two shareholders, made for the purpose of securing a bank loan, did not give rise to an implicit...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 285 | 224 |
De Mond v. R., 99 DTC 893, [1999] 4 CTC 2007 (TCC)
The taxpayer settled a trust governed by U.S. law (the “Family Trust”) for the purpose of ensuring that its property could be rolled into...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | 90 |
Administrative Policy
22 July 2023 Internal T.I. 2021-0883241I7 - Entity classification of Liechtenstein stiftung
A Liechtenstein stiftung was formed as a family foundation (later changed to a private-benefit foundation), with a capital contribution from the...
2024 Ruling 2019-0817961R3 - Swiss Collective Investment Scheme
A collective investment scheme (the “Fund”) established under Swiss law is an arrangement by which investors pool their assets to be managed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 10 | Swiss collective investment vehicle treated as flow-through for purposes of the pension/ retirement fund dividend exemption in the Canada-Swiss treaty | 259 |
29 November 2022 CTF Roundtable Q. 9, 2022-0950531C6 - Multiple Wills and T3 Reporting
Where an individual has two wills (one of them not being subject to probate) so that the two wills are administered separately, does s. 104(2)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | s. 104(2) cannot apply where there are multiple wills since there is only one trust | 113 |
15 June 2022 STEP Roundtable Q. 16, 2022-0927601C6 - Foreign Entity Classification of a Foundation
Is a foundation created under the laws of a country where civil law applies treated as a trust under the Act?
After referring to its two-step...
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 6, 2021-0896061C6 F - Prolonged Administration of an Estate
The will of Mr. X, a resident of Quebec, left all of his property in equal shares, to his two children, aged 10 and 15. His will included an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(18) | s. 104(18) can apply where an executor has discretion to defer the payment of income for the benefit of minor beneficiaries over an extended period | 330 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(6) | s. 104(18) overrode the s. 104(6) requirement to make income payable in the year | 295 |
2018 Ruling 2017-0738041R3 - XXXXXXXXXX
Fund
The Fund constitutes a collective investment vehicle that is not a body corporate, a partnership or a limited partnership, under which the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | collective investment vehicle treated as transparent for Pt XIII purposes | 179 |
2017 Ruling 2015-0605161R3 - Fonds commun de placement (FCP) - Luxembourg
Fund and Sub-Funds
The Fund, which is UCITS (collective investment in transferable securities) constituted under the Luxembourg law of contract as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | Luxembourg investment mutual fund was a co-ownership arrangement | 144 |
2016 Ruling 2015-0606141R3 - XXXXXXXXXX
Current structure
The Umbrella Fund is an open-end fund with Subfunds, all of them governed by Fund Contracts under the laws of a common law...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | common contractual fund was fiscally transparent | 129 |
12 July 2016 External T.I. 2014-0560361E5 - Cdn beneficiary of US living trust
A U.S. revocable living trust is a trust that is usually controlled by and established for the benefit of those who created the trust...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | potential application to U.S. revocable living trust | 190 |
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(1) | whether there is a foreign tax credit for US tax paid by the grantor of a revocable US living trust | 256 |
10 June 2016 STEP Roundtable Q. 10, 2016-0645781C6 - US Revocable Living Trusts
A U.S. resident (the “grantor”) settles a “revocable living trust” with property including taxable Canadian property. The grantor: is the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) | transfer to remainder beneficiary of a U.S. revocable living trust on death does not occur as a consequence of death | 126 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) | remainder beneficary of inter vivos trust | 165 |
2014 Ruling 2013-0496831R3 - Irish Common Contractual Fund
Description of CCF
"CCF" is a common contractual fund established pursuant to the Investment Funds, Companies and Miscellaneous Provision Act 2005...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | Irish common contractual fund respected as co-ownership | 54 |
22 November 2013 External T.I. 2013-0511771E5 - Beneficial Ownership - Disposition
As the taxpayer's daughter did not qualify for a mortgage at the time of her purchase of her home, the bank required legal title to be placed in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | mother as nominee for daughter's house | 94 |
8 May 2012 CALU Roundtable Q. 6, 2012-043564
Shareholders of a corporation use a buy-sell agreement to requires the corporation to acquire insurance on the shareholders' lives (and pay the...
7 October 2011 Roundtable, 2011-0411841C6 F - Succession
As of June 30, 2011, all the liabilities of Succession X have been paid and all the liquidator's duties have been completed, and its only asset of...
15 July 2010 Internal T.I. 2010-0353701I7 - Classification foreign entity - Trust Enterprise
Ruling that a Liechstenstein Trust Enterprise would be a trust rather than a corporation. Although it had centralized control, continuity of...
4 October 2010 Internal T.I. 2008-0289461I7 - Netherlands Antilles private foundation
A private foundation was created pursuant to the laws of the Netherlands Antilles and governed by Articles of Foundation. Its capital consists of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | Netherlands Antilles private foundation qualifies as a trust notwithstanding its separate legal personality | 109 |
2010 Ruling 2009-0345011R3 - Irish Common Contractual Fund
Irish contractual funds, which gave the unitholders proportionate undivided co-ownership interests in the assets of each "sub-fund (i.e.,...
9 June 2010 External T.I. 2009-0342081E5 F - Associé déterminé
Before going on to indicate that at trust could be considered to be actively engaged in the activities of a general partnership for purposes of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Specified Member | trust member of partnership can be actively engaged through the activities of its trustee | 176 |
18 September 2008 External T.I. 2008-0264381E5 F - Résidence d'une fiducie
Non-resident individuals entrusted the custody of certain funds to the Quebec office of a Canadian financial institution, which held the funds in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | holding of assets by Canadian securities depositary and custodian would not be relevant to trust residence | 220 |
11 October 2007 Internal T.I. 2007-0236981I7 - Pennsylvania Business Trust
Before finding that a Pennsylvania business trust (PBT) was a trust for ITA purposes, the Directorate stated:
Professor Waters suggests that the...
2006 Ruling 2006-0199741R3 - Irish Common Contractual Fund
CCF
A Common Contractual Fund ("CCF") is a type of collective investment undertaking under which Unitholders by contractual arrangement acquire,...
28 April 2004 Internal T.I. 2004-0071191I7 F - À quoi se rattache l'élément contrôle/propriété?
Regarding whether the reference to a trust or an estate in s. 104(1) is equivalent to a reference to an heir without having ownership or control...
2006 Ruling 2004-0106101R3 - Class of German Arrangement & Treaty Benefits
Ruling that an open-end real estate fund established under the Investment Companies Act (Germany) (and to be continued under the Investment Act...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | 26 |
2004 Ruling 2004-0067771R3 - Irish Common Contractual Fund
Ruling that an Irish Common Contractual Fund would be considered to constitute a co-ownership arrangement.
20 May 2002 External T.I. 2002-0117885 F - Lien de dépendance et application de 120.4
CCRA indicated that a trust is related to an individual if its trustee is so related:
Subsection 104(1) provides in part that, for the purposes of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(a) | trustee is related to individual if its trustee is so related | 99 |
| Tax Topics - Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) | split income definition applied on the basis that the business of a partnership is carried on by its partners and that a trust if related based on the relatedness of its trustee | 311 |
18 February 2002 External T.I. 2000-0046075 - Trust Affiliated with a Corporation
The purpose of the amendment to s. 104(1) adding "unless the context otherwise requires" was not to make a fundamental change. Although a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) | 30 |
20 February 2002 External T.I. 2001-0105695 F - Remboursement d'impôt d'une fiducie liquidée
In finding that the potential tax refund resulting from the Quebec abatement to which a mutual fund trust was entitled should be paid to the...
10 January 1996 External T.I. 9518515 - Transfers of property to revocable living trusts
Would a transfer of appreciated capital property to a revocable inter vivos trust (also referred to as a revocable living trust), which is not a...
IT-216 (Cancelled) "Corporation Holding Property as Agent for Shareholder" 20 May 1975
- A corporation may hold in trust, as agent for a shareholder, property that was acquired specifically to be held in this way. This situation,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | 85 |
Articles
Tina Korovilas, Drew Morier, "Non-Corporate Vehicles in the Foreign Affiliate Context", 2018 Conference Report (Canadian Tax Foundation), 20:1 – 114
Quaere whether beneficiary is beneficial owner (pp. 20:7-8)
Some commentators argue that a beneficiary of a trust is the beneficial owner of...
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.
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...
Donald G.H. Bowman (former Chief Justice of the Tax Court of Canada), "Bare Trusts and Nominee Corporations", Tax Topics (Wolters Kluwer), August 11, 2016, No. 2313, p. 1
Trustee cannot also be an agent (p.4)
My reason for thinking that a trustee holding property or carrying on a business for a beneficiary cannot at...
Jack Bernstein, "Trust Residence Question", Canadian Tax Highlights, Vol. 17, No. 7, July 2009, p. 1
Discussion of CRA audits of residence of inter-provincial trusts.