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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Subject: TAX INSTALMENTS FOR AN INTER VIVOS TRUST Section(s): 156(1)]
913162
A.Y. Ho
(613) 957-4796
XXX
Attention: XXX
January 25, 1992
Dear Sirs:
Re: Tax Instalments for an Inter Vivos Trust
This is in reply to your letter of August 1, 1991 requesting confirmation that an inter vivos trust is not required to pay tax instalments in 1991. You report that in the Richard De Boo service "Taxation of Trusts and Beneficiaries" it states that, administratively, the Department does not require inter vivos trusts to make instalment payments.
Subsection 156(1) of the Income Tax Act (the "Act") requires every individual to pay quarterly instalments of tax except where the tax payable in respect of a taxation year is less than $1,000 or where the individual's income from which tax has been withheld at source is at least 75% of the individual's total income for the year. There are no other provisions in the Act that have the effect of relieving individuals from the obligation to pay instalments of income tax for a taxation year. The foregoing comments are relevant for an inter vivos trust which for income tax purposes is regarded as an individual.
Notwithstanding the above, it is the Department's current administrative practice which has effect in 1991 not to require an inter vivos trust to pay tax instalments. However, we understand that the Department will require all inter vivos trusts to pay instalments in the near future if the conditions in subsection 156(1) of the Act are met.
Should you require additional information on this matter please contact W. A. Mizuik, Head Office T2 & T3 Processing Division at (613) 957-9374.
Yours truly,
for Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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