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.
923634
XXXXXXXXXX G. Kauppinen
(613) 957-4363
Attention: XXXXXXXXXX
April 8, 1993
Dear Sirs:
Re: Subsection 104(13.1) of the Income Tax Act ("Act")
This is in reply to your letter dated December 1, 1992 wherein you requested a technical interpretation regarding subsection 104(13.1) of the Act. We apologize for the delay in responding to your request.
You have asked our opinion if, where a spouse is entitled to receive all of the income of a testamentary spousal trust but revokes in writing his or her right to receive all or part of the income of the trust in a given year, a valid designation may be made pursuant to subsection 104(13.1) of the Act.
Our Opinion
It is not necessary for the spouse to give up the right to receive actual distributions from trust income during the year in order for a designation pursuant to subsection 104(13.1) of the Act to be made. The designated amount will be taxable to the trust rather than to the spouse whether part or all of such amount is actually distributed to the spouse or not.
As stated in paragraph 22 of Information Circular 70-6R2, the foregoing comments constitute an expression of opinion only and are not binding on this Department.
We trust the foregoing is of assistance.
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, 1993
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