CRA confirms that an emigrating trust can elect to defer payment of the exit tax

Ss. 220(4.5)-(4.54) permit an “individual” to elect, on giving security acceptable to CRA, to defer payment of the emigration tax under s. 128.1(1)(b). Consistently with the ss. 104(2) and 248(1) extension of this quoted concept to trusts, CRA confirmed that these provisions apply to a trust which has ceased to be resident in Canada (as to which it referenced the Fundy Settlement test of central management and control), and did not intimate that any different security requirements would apply than for a “regular” emigrating individual.

Neal Armstrong. Summaries of 18 October 2016 External T.I. 2015-0608051E5 Tr under s. 220(4.5) and s. 2(1).