CRA reaffirms that winding-up an inter vivos trust does not shorten its taxation year

CRA considers that the taxation year end of an inter vivos trust is not shortened as a result of being wound-up in the year, so that the 90-day return filing deadline is still based on the calendar year.  This is generally consistent with s. 132(6.2), which can deem a mutual fund trust to exist in the portion of a year in which it did not in fact exist, and also is consistent with earlier positions (28 February 1998 T.I. 9714685 and 17 July 2000 Memorandum 2000-0012557).

Neal Armstrong.  Summary of 7 November 2012 T.I. 2012-0468101E5 under s. 249(1).