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.
| |
June 21, 1990 |
| Assessing and Enquiries |
Rulings Directorate |
| Directorate |
Financial Industries Division |
| |
D.S. Delorey |
| Attention: G. Venner |
| Director General |
| |
File No. 5-900958 |
Subject: Family Allowance Benefits Paragraph 16 of Information Circular 79-9R
We have received an enquiry from a taxpayer concerning the administrative practice set out in paragraph 16(a) of Information Circular 79-9R. That paragraph states that where the recipient of family allowance benefits deposits the funds in a trust, the income earned on the deposited funds will be considered to be that of the relevant child provided the trust funds can be readily identified as property of the child. Relative to this practice, we seek clarification of your administrative position on the following two points:
1. Assuming that (a) a trust is involved, (b) trust funds originating from family allowance benefits can be readily identified as the property of the child on whose behalf the benefits were received and (c) the trust has no other source of funds, the trust would have no income at any time under the above-mentioned practice to flow through to a beneficiary; i.e., the income earned on the funds would be of the child. Given this scenario, would you nevertheless require that T3 returns be filed.
2. If the draft form submitted by the taxpayer (copy attached) were completed in all respects and were made available to the Department, would the completed form be sufficient to enable you to "readily identify" that the family allowance benefits invested in the insurance contract are the property of the named child.
Attached are copies of the taxpayer's enquiry and related correspondence with the Enquiries and Taxpayer Assistance Division. While we remain of the view, given the above mentioned practice, that the issues are primarily administrative rather than interpretive in nature, we are nevertheless prepared to reply to the taxpayer once your views on the above two points are received.
Director GeneralRulings Directorate
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, 1990
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, 1990
Email this Content