SERP that maintains the 18% RRSP contribution amount above the RRSP dollar limit (subject to overall 15% or 10% cap)
547
Principal Issues: Will the proposed Supplemental Plan be an SDA?
Position: No.
Reasons: The Supplemental Plan will provide for reasonable pension benefits and therefore none of the main purposes will be to postpone the payment of tax.
Submitted by narmstrong on Thu, 05/28/2020 - 03:03
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner
An individual resident in Canada settles and contributes capital property to a trust governed by the Civil Code of Québec (the "C.C.Q.") under...
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discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i)
Submitted by narmstrong on Thu, 05/28/2020 - 03:06
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i)
An individual resident in Canada settles and contributes capital property to a Quebec trust under which the settlor is one of the two trustees and...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i)
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i)
discretion of trustee to accumulate rather than distribute income to sole beneficiary did not detract from beneficial ownership
269
Principal Issues: In a situation where an individual transfers capital property to a trust governed by the Civil Code of Quebec, the individual is one of the co-trustees and the sole beneficiary of the trust and the trustees have discretion with respect to the timing of payment of the income and distribution of capital of the trust (1) whether the transfer of property would not result in a change in the beneficial ownership of the property as required by paragraph 107.4(1)(a)? (2) whether subsection 73(1) would not apply to the disposition as required by paragraph 107.4(1)(i)?
Position: (1) Yes. (2) Yes.
Reasons: (1) A discretionary power of the trustees with respect to the timing of payment of the income and distribution of capital to the beneficiary would not result, in and of itself, in a change in the beneficial ownership of the property for the purposes of paragraph 107.4(1)(a) as long as the beneficiary is, after the transfer of the property to the trust, the only person who is beneficially interested in the trust within the meaning of subsection 248(25). (2) If the trustees of a trust may, under the terms of the trust agreement, restrict the payment to the beneficiary of any portion of the trust's income, the beneficiary is not "entitled to receive" all the income of the trust within the meaning of subsection 73(1)(c)(ii). Therefore, subsection 73(1) would not apply to the disposition, as required in subsection 107.4(1)(i).
