Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: 1. Is the concept of mind and management from the Garron case fact specific, or representative of general principles? 2. Does CRA propose to apply the mind and management concept to Canadian resident trusts, for implications such as provincial tax?
Position: 1. & 2. The residence of a trust in Canada, or in a particular province, is a question of fact, to be determined based on the unique facts in each case.
Reasons: This is a longstanding CRA position, as is noted in IT-447.
2010 STEP National Conference
Question 15 -Residency of a Trust
The Garron case looked at the concept of mind and management with respect to determining the residency of a trust. This was relevant in the context of a non-resident trust. Does CRA confine these cases to their facts, or do they represent general principles? Does CRA propose to apply a similar concept in dealing with Canadian resident trusts, which might, for example, have provincial tax implications?
Response
It has been the longstanding position of the Canada Revenue Agency that, as is noted in Interpretation Bulletin IT-447 - Residence of a Trust or Estate, the residence of a trust or estate in Canada, or in a particular province or territory within Canada, is a question of fact to be determined according to the circumstances in each case. This continues to reflect the current position of the Agency.
Phil Kohnen
2010-036311
June 8, 2010
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