27 July 1990 Income Tax Severed Letter 9009915 F - Residence of Trusts

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.

July 27, 1990

Dear Sirs:

Re:  Residence of Trusts Interpretation Bulletin IT-447

This is in reply to your letter dated May 28, 1990, in which you requested our opinion on a question of the residence of a trust and in particular on the application of the administrative position contained in paragraph 7 of Interpretation Bulletin IT-447, dated May 30, 1980, to a particular fact situation.  Your question involved a corporate trustee to be incorporated in Canada which would provide trustee services exclusively to trusts where both the settlor and the majority of the beneficiaries would be non-residents of Canada.

The determination of the residence of a trust at a particular time is a question of fact to be determined according to all the circumstances prevailing at that time.  A trust is generally considered to reside where the trustee, executor, administrator, heir or other legal representative who manages the trust or controls the trust assets resides.

Where the management and control of a trust is exercised by a branch office of a trust company outside of Canada, the Department's current administrative position is contained in paragraph 7 of Interpretation Bulletin IT-447, dated May 30, 1980.  In accordance with the position, a trust may be determined resident in the jurisdiction outside of Canada where the branch office of the trust company is located, even though the trust company is resident in Canada.  Taxpayers may rely on statements contained in interpretation bulletins  until they have been amended or changed by way of public statement.

The above comments are not an advance income tax ruling and accordingly are not binding on Revenue Canada, Taxation in respect of any particular taxpayer, as stated in paragraph 24 of Information Circular 70-6R.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate