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27 June 2021- 11:23pm CRA confirms that a joint spousal (s. 73(1.01)(c)(iii)) trust can receive jointly or individually owned property from the spouses Email this Content CRA confirmed that it is possible for spouses (or common-law partners), both of them over 65, to jointly create a trust which meets the s. 73(1.01)(c)(iii) conditions with a contribution of property jointly-owned by them; and that it is possible for one or both of them to make subsequent contributions to the trust on a s. 73(1) rollover basis with property that is owned jointly by them, and other property that is owned individually. ...

CRA stated: [A]lthough the cash used to fund Spouse A’s initial share investment … was stated to be from cash that came from a joint account … the legal form of these transactions strongly suggests that Spouse B has not made any direct or indirect contribution of property to Opco. … [T]aking an overly broad interpretation that a specified individual has made an indirect financial contribution to a business such that the reasonable return exception in subparagraph (g)(ii) of the definition of excluded amount would apply to prevent the amount from being split income would appear to frustrate the underlying tax policy of the TOSI rules. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2009-11-06 16 October 2009 Internal T.I. 2009-0337721I7 F- Perte lors de fusion étrangère Income Tax Act- Section 87- Subsection 87(8) claiming of capital loss in promptly-filed amended return would be accepted as an election Income Tax Act- Section 40- Subsection 40(3.5)- Paragraph 40(3.5)(b) s. 40(3.4) not applicable to foreign triangular merger to which s. 87(8) was elected not to apply 2009-10-30 20 October 2009 External T.I. 2009-0328441E5 F- Fiducie testamentaire Income Tax Act- Section 248- Subsection 248(8)- Paragraph 248(8)(a) unlikely to have been a distribution as a consequence of death where mooted testamentary trust formed by beneficiaries by their own agreement Income Tax Act- Section 75- Subsection 75(2) s. 75(2) would apply if heirs form a trust to provide for their sister out of the residue, with the remainder to them on her death 23 October 2009 External T.I. 2009-0309861E5 F- Tax-free Savings Accounts Income Tax Act- Section 143.2- Subsection 143.2(2)- Paragraph 146.2(2)(c) contribution by spouse causes cessation as TFSA Income Tax Act- Section 74.5- Subsection 74.5(12)- Paragraph 74.5(12)(c) s. 74.5(12)(c) inapplicable to contribution of property to TFSA of contributor’s spouse followed by spouse’s withdrawal of property and investment of proceeds 20 October 2009 External T.I. 2009-0327911E5 F- Fiducie non-résidente Contribuant résidant Income Tax Act- Section 94- Subsection 94(1)- Resident Contributor any period of residence in Canada even if prior to a period when the person was non-resident in Canada is included in computing the 60-month period 2009-10-23 13 October 2009 External T.I. 2009-0342091E5 F- Revenu d'emploi exonéré par Conv.- frais de garde Treaties- Income Tax Conventions- Article 19 employment income that was Treaty-exempt was to be reported (on a separate line), with the s. 110(1)(f)(i) deduction then claimed Income Tax Act- Section 63- Subsection 63(2) child care expenses could only be claimed by the spouse with the lower net income, notwithstanding that her income was Treaty-exempt ...