Principal Issues: Whether the variation of a trust indenture to create and issue units in one or more classes and the re-designation of the existing units into units of a given class would result in (1) a disposition by the trust of its property or in the creation of a new trust for purposes of the Act, (2) a disposition by the existing unitholders of their existing units, and/or (3) the application of subsection 104(7.1).
Position: (1) No. (2) No. (3) No.
Reasons: (1) The changes are not considered sufficiently material or significant to result in the creation of a new trust for purposes of the Act and it is submitted that a new trust will not be created under the applicable provincial law. (2) No cash consideration or other proceeds of disposition will be received by the existing unitholders in respect of the re-designation and the attributes of the existing units and the new class F units will be substantially the same. Furthermore, the changes to the trust indenture in the given instance, when viewed as a whole, do not support the conclusion that there would be a disposition. (3) Consistent with previous rulings.