12 February 1990 Income Tax Severed Letter ACC9240 - Inter-vivos Gifts of Capital Property Through Spouse Trust

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.

19(1)

19(1)

February 12, 1990

Revenue Canada Taxation Publications Division Legislative and Government Affairs Branch 123 Slater Street Ottawa, Ontario K1P 5H2

Dear Sirs:

Attention: Mr. Roy Schultis

There seems to be a discrepancy between s. 73(1) of the Income Tax Act (the "Act") and paragraph 5(b) of the Interpretation Bulletin IT-209R concerning whether the beneficiary spouse needs to be a resident of Canada when an inter vivos spouse trust is created. Paragraph 5(b) of the Interpretation Bulletin IT-209R , states that both the taxpayer creating a spouse trust and his spouse must be resident in Canada at the time the trust is created.

However, my reading of s. 73(1) of the Act is that only the taxpayer and the transferee (i.e the trust ) need to be resident in Canada. It would be appreciated if you could send me some information clarifying this issue.

Yours very truly,

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