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: Has the CRA modified its administrative position on whether the replacement of an executor, trustee or administrator of an estate as a consequence of death or inability to act may result in an acquisition of control?
Position: No.
Reasons: See below.
2024 STEP CRA Roundtable – June 4, 2024
QUESTION 4. Acquisition of Control of a Corporation
In archived document IT-302R3, the CRA adopted the administrative position that a change of executor, administrator or trustee of an estate does not result in an acquisition of control of a corporation controlled by the estate, if the replacement results from a death or inability to fulfill the function of an executor, administrator or trustee.
1) Can the CRA comment on whether this continues to be their position?
2) Would the position apply to a replacement trustee that is an independent trust company?
CRA Response:
1) It remains our administrative position that where the executor, administrator, or trustee of an estate is replaced as a result of that person's death or inability to fulfill their functions, control of the corporation would not, solely as a result such replacement, be acquired.
2) With respect to the replacement of a person as a consequence of their death or inability to fulfill the function of an executor, administrator or trustee of an estate, our administrative position is not conditional on the replacement trustee being related to or otherwise connected to the executor, administrator or trustee being replaced.
Ryan McPherson
2024-100346
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2024
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2024
Email this Content