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.
Question 4
Non-Resident Trust
If a non-resident trust was settled by a non-resident of Canada who later becomes a resident of Canada, is subsection 75(2) applicable to the settlor and the trust once the settlor takes up residence in Canada notwithstanding that the trust may be exempt from the application of subsection 94(1) by virtue of subclause 94(1)(b)(i)(A)(iii)?
Department's Position
Pursuant to subsection 75(2), any income or loss from property settled on the trust (or property substituted therefor) and any taxable capital gain or allowable capital loss from the disposition of the property (or property substituted therefor), will in certain circumstances be deemed to be that of the person from whom the trust property was directly or indirectly received.
Subsection 75(2) operates independently from the provisions of section 94. Consequently, if property is held on any of the conditions set out in subsection 75(2), it would apply to the settlor and the trust once the settlor takes up residence in Canada.
Institute of Chartered Accountants of Alberta
Round Table - May 12, 1994
Doug Watson
941090
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, 1994
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, 1994