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.
Can multiple returns be filed under 104(23)(d) for one deceased
Wording of the paragraph refers to election to file "separate
return" including only income from the trust and also refers to
"that period" which may be interpreted to mean that several
returns are possible; the sole correspondence 1978 on this issue
EC4491 (not on mega text) states that separate elections may be
made for each testamentary trust of which the deceased was a
beneficiary - however this letter does not address the multiple
return issue i.e. while separate elections may be made it does
not directly follow that separate returns may be filed. Given
that the full personal tax credits may be claimed for each return
filed (they are not limited by 118.93) the reasonable position is
that only one return under subsection 104(23)(d) is permissable.
October 2, 1996
Ottawa Tax Services Office Trusts Section
Marie-Josée Martel L. Holloway
Assistant Director (613) 957-2104
Client Services Division
Attention: Bill Luhta
Estates & Trusts Division
4th Floor 962292
Subsection 104(23)(d) of the Act
This is in reply to your memorandum dated June 27, 1996,
concerning a letter received from XXXXXXXXXX
Where a taxpayer is a beneficiary under more than one
testamentary trust, it is our view that the election under
paragraph 104(23)(d) of the Act may be made separately in respect
of benefits under each trust. While elections may be made in
respect of each interest in a testamentary trust, this would not
preclude the filing of one paragraph 104(23)(d) return for the
deceased beneficiary, as all periods, for which elections were
made, end on the deceased's date of death. The argument in
favour of the possibility of filing more than one testamentary
return under paragraph 104(23)(d) is based on the fact that the
wording in that provision is in the singular and refers to
"a separate return of income" filed "as if that other person's
only income for the period were the individual's income from the
trust for that period."
However, given that personal credits are not limited by section
118.93, the multiplication of these credits, if more that one
paragraph 104(23)(d) return were available, would give an
advantage to those who are beneficiaries under multiple
testamentary trusts. Considering that if it were not for the
election to file a separate return under paragraph 104(23)(d),
income reported in the deceased's final return would be higher by
virtue of including the income for the "stub periods" of all
trust interests held by the deceased, the intent of the provision
would appear to be to permit a single return under paragraph
104(23)(d) on which would be reported income from stub periods
which would otherwise, had the deceased not died, been reported
in the subsequent year's income. Therefore, in our opinion, only
one paragraph 104(23)(d) return may be filed.
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
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, 1996
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, 1996