CRA finds that a discretionary trust can wholly allocate each of an eligible and a non-eligible dividend to each of two recipient beneficiaries

A discretionary trust received an eligible dividend in a year and immediately allocated and distributed it to a beneficiary; and later in the same year, received an ordinary (non-eligible) dividend which it immediately allocated and distributed to a second beneficiary, also in accordance with the discretions accorded by the trust deed. CRA found that the two respective dividends could be designated under s. 104(19) exclusively to the respective beneficiaries rather than being required to be designated on a pro rata basis.

Neal Armstrong. Summary of 22 June 2023 External T.I. 2018-0746741E5 F under s. 104(19).