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.
5-7770
G. Kauppinen
19(1) (613) 957-3495
July 26, 1989
Dear Sirs:
This is in reply to your letters dated March 22 and April 10, 1989 regarding bare trusts. In these letters you have indicated that, in your view, our position regarding the taxability of bare trusts as reflected in our response to Question 32 of the 1988 Round Table has created many practical problems.
As you may be aware, bare trusts were the subject of a paper given by C.B. Darling of Revenue Canada, Taxation at the 1989 Corporate Management Tax Conference. Copies of this paper may be obtained from the Canadian Tax Foundation.
In this paper it was indicated that we intend to review our position regarding the taxation of bare trusts and, until this review is completed, taxpayers may rely on our published position in IT-216 , IT-437 and 1 . In other words, where property is transferred to a bare trust the settlor will be considered to be the owner of the property for income tax purposes.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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