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.
This is in reply to your memorandum of July 26, 1989 concerning the eligibility of XXX to act as the trustee in respect of the application for certain funds to become registered investments under paragraph 204.4(2)(d) of the Act.
You indicated that the lawyers for XXX contend their client is authorized to be the trustee of a mutual fund trust for corporate and trust law Purposes under clause 213(3)(b) of the Loan and Trust Corporations Act, 1987 (Ontario) and under QSC Policy Statement No. 11.1, and should be Permitted to act as a trustee for a trust under Paragraph 2044(2)(d) of the Act. Further, A.L. Davidson Of Legal Service Taxation, verbally agreed with their Position. In his view if XXX meets the test for a trustee under paragraph 204.4(2)(a) of the Act then it should probably also qualify as such under Paragraph (d) therein. His other reasons are should probably outlined in a summary enclosed with your memorandum.
We concur with the view that where a taxpayer meets the test for a trustee under paragraph 204.4(a) of the Act then the taxpayer should also be accepted as a trustee under Paragraph (d) thereunder. Technically, we do not believe that we should a trustee test where the legislation does not require such a test.
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
© His Majesty the King in Right of Canada, 1989
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 le Roi du Chef du Canada, 1989
Email this Content