CRA recognizes that a trust preserved s. 92(1) basis in shares of a CFA when it transitioned from old to new s. 94 trust rules

Where in its pre-2007 years a non-resident discretionary trust recognized FAPI under “old” s. 94(1)(c)(i)(C) from a CFA and then received a dividend from the CFA in 2007 while it was subject to “new” s. 94(3), CRA would recognize that the upward ACB adjustment to the CFA shares that occurred as a result of the FAPI recognized under the old rule could now be considered to be distributed under s. 91(5) notwithstanding the trust’s new status.

Neal Armstrong. Summary of 16 November 2015 Memorandum 2015-0598491I7 under s. 91(5).