CRA confirms the modified connected contributor rules applicable to pre-2000 non-resident contributions to a mooted s. 94 trust
Whether s. 94 applied to two factually non-resident trusts with beneficiaries who were the resident children of a non-resident contributor (Mr. X) turned on whether all the contributions by Mr. X were made at a “non-resident time.” CRA noted that a special version of this test applied to contributions made before June 23, 2000. That test (which Mr. X satisfied) was that he was non-resident in Canada for the period commencing 18 months before the trust year end for the year of the contribution and ending 60 months after the contribution. As all the contributions were pre-June 23, 2000 contributions that satisfied this test, the trusts were not caught by s. 94.
Neal Armstrong. Summary of 26 July 2018 Internal T.I. 2018-0768281I7 under s. 94(1) – non-resident time.