Income Tax Severed Letters - 2020-09-09

Technical Interpretation - External

8 June 2020 External T.I. 2019-0822901E5 - Mutual Fund Trusts

Unedited CRA Tags
132(6)(c); Reg. 4801(b)
an individual and their registered plans can constitute multiple beneficiaries under the 150 MFT beneficiary test
individual's RRSP or TFSA counts as a separate beneficiary for 150-beneficiaries test purposes

Principal Issues: Whether an individual and each of their registered plans count as a separate beneficiary for purposes of satisfying the 150 beneficiary requirement in paragraph 4801(b) of the Regulations.

Position: Yes.

Reasons: There is no requirement to look through the registered plan trust.

Technical Interpretation - Internal

14 April 2020 Internal T.I. 2019-0834041I7 - Disability Tax Credit and non-resident individual

Unedited CRA Tags
118.3(1), 118.8

Principal Issues: Whether a non-resident individual is eligible to claim the Disability Tax Credit and transfer the unused credit to their Canadian resident spouse.

Position: No.

Reasons: A non-resident individual that does not have any Canadian source income would not be considered a “taxpayer” as it is defined in the Act and therefore would not be eligible for the Disability Tax Credit. Consequently, there would be no amount available for transfer to the Canadian resident spouse under section 118.8 of the Act.