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.
00 06 62.3 B. Fioravanti
September 29, 1978
Dear XXXX
This will reply to your letter of September 11 concerning a situation where the income is accumulated in the spouse trust and the trust in effect pays tax on the accumulated sum. Your concern is whether the payment out of the trust to a spouse of the original income minus the income taxes paid on such income would contravene the definition of a spouse trust within the meaning of the Act.
It is our view that by virtue of subsection 108(4) of the Act, a trust is considered to be a spouse trust even though it is charged with payment of any income or profits tax in respect of any of its income for the purposes of the Act.
We have no objection to the relevant provisions in regard to the trust contained in the draft of the Will attached to your letter.
Yours sincerely
for Director Non-Corporate Rulings Division BF/dl s. 108(4)
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© Her Majesty the Queen in Right of Canada, 1978
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© Sa Majesté la Reine du Chef du Canada, 1978
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