CRA indicates that beneficial interests in discretionary trusts holding shares of a corporation with a mooted related business for TOSI purposes must be valued

The definition of “related business” of a specified individual in (c)(i)(B) in the s. 120.4 split income rules references a business of a corporation where a source individual owns property “that derives, directly or indirectly, all or part of its fair market value” from shares of the corporation. CRA indicated that such property would extend to an interest in a discretionary trust, and stated that the valuation of such an interest was a question of fact.

Neal Armstrong. Summary of 5 October 2018 APFF Roundtable, Q.10 under s. 120.4(1) – related business – s. (c)(i)(B).