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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Subsection 104(2) of the Income Tax Act ("Act")
This is in reply to your letter dated February 5, 1993 regarding subsection 104(2) of the Act.
In our opinion subsection 104(2) of the Act would not be applicable in the following circumstances:
1. A parent settles two trusts.
2. Each of the trusts has one of the settlor's children as the beneficiary.
3. Each trust holds different property.
4. Neither trust is revocable and the settlor has no powers after the settlement of the trusts concerning any aspect of either trust or the property held by the trusts.
As stated in paragraph 22 of Information Circular 70-6R2, the above 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 DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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