CRA Folio on trust residence does not apply a fully corporate model of central management and control

CRA’s Folio on trust residence recognizes that the touchstone for residence of a trust is the place of actual exercise of its central management and control rather than the trustees’ residence. Where trustees in different jurisdictions are involved in trust management, the trust will reside where "the more substantial central management and control actually takes place."  After noting that central management and control may rest with the settlor or beneficiaries, CRA states that it will review any decision-making limitations on the trustees and "the ability of a trustee and other persons to select and instruct trust advisors with respect to the overall management of the trust."

Application of the corporate central management and control test often focuses on where board meetings are held. The Folio contains no explicit references to where the trustees meet, which might have been helpful for those addressing issues of income fund or REIT residence.

Neal Armstrong. Summary of S6-F1-C1 under s. 2(1).