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.
922318
24(1) A.Y. Ho
(613) 957-4796
Attention: 19(1)
October 30, 1992
Dear Sirs:
This is in reply to your letter of July 28, 1992 wherein you requested our interpretation of proposed subparagraph 104(5.6)(c)(ii) of the Income Tax Act (the "Act") as contained in the Notice of Ways and Means Motion dated June 19, 1992. In particular, you asked us to comment on the phrase "transferred or loaned property (either directly or through another trust) to the trust" as they appear in proposed clause 104(5.6)(c)(ii)(B) of the Act in a situation where a sole beneficiary of a trust transfers property to the trust.
The situation you described appears to reflect a factual situation. As stated in paragraph 21 of the Information Circular 70-6R2, we do not provide opinions on factual situations. However, we can provide you with the following general comments.
Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
Our Comments
The phrase "transferred or loaned property (either directly or through another trust) to the trust" as contained in proposed clause 104(5.6)(c)(ii)(B) of the Act is not defined in the proposed legislation. Although we have not had occasion to consider the meaning to be ascribed to the phrase, it would seem that verbs used would be given their normal meaning, subject to the bracketed modifiers. In this connection the Webster's Ninth New Collegiate Dictionary has the following meaning for the word "transfer":
- "to convey from one person, place, or situation to another".
Judge Thorson made the following comments in the case of Fasken v. Minister of National Revenue, 4 DTC 491:
- "the word "transfer" is not a term of art and has not a technical meaning. It is not necessary to a transfer of property from a husband to his wife that it should be made in any particular form or that it should be made directly. All that is required is that the husband should so deal with the property as to divest himself of it and vest it in his wife, that is to say, pass the property from himself to her." (emphasis added)
We regret that we are unable to be of further assistance since it is ultimately a question of fact whether a property has been transferred from one person to another.
We trust the above comments are of assistance.
Yours truly,
for Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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, 1992
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, 1992
Email this Content