23 October 1989 Ministerial Correspondence 58724 F - Inclusion in Beneficiary's Income of Amount Payable in the Year by Non-resident Trust

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.

October 23, 1989

Dear Sirs:

This is in reply to your letter of September 25, 1989 wherein you requested our opinion in respect of paragraph 104(13)(c) of the Income Tax Act (the "Act").

Paragraph 104(13)(c) of the Act provides for the taxation of all amounts payable in the year by a non-resident trust to a Canadian beneficiary unless the amounts fall into the two exceptions noted therein.

You state that, as noted in Interpretation Bulletin 342, it is accepted treatment that income of a trust which is paid or payable to a beneficiary is considered to have been earned by the beneficiary on the last day of the trust's taxation year. You enquire as to whether this treatment will apply in respect of paragraph 104(13)(c) of the Act.

It is our opinion that, by virtue of subsection 104(24) of the Act, the amount payable in the year by the non-resident trust would be included in the beneficiary's income in the beneficiary's taxation year that he received it or was entitled to enforce payment thereof.

We trust the above comments will be of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate