Section 233.2

Subsection 233.2(1) - Definitions

Exempt Trust

Administrative Policy

12 April 2016 External T.I. 2015-0595461E5 - Australian Super Fund & T1135

Australian Superannuation Fund not an exempt trust due to taxability

An Australian Superannuation Fund (or “Super Fund”) is a government-regulated trust that has been registered and approved by the Australian Government and is funded by contributions from employers and individuals over their working lives in order to provide retirement incomes. As the investment earnings within the Super Fund are subject to Australian tax (of 15%, or 10% on capital gains), it does not qualify as an “exempt trust,” so that a Canadian beneficiary’s interest is considered to be specified foreign property, and the individual is required to file T1135s reporting inter alia the “cost amount” of the individual’s interest in the fund.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (n) Australian pension fund subject to 10%-15% tax rate not an exempt fund 285
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (e) cost amount of pension rights includes future amounts to which legal entitlement 174
Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) no penalty for reasonably estimating an unknown amount, e.g., the “cost amount” of a pension interest 164

19 August 2014 External T.I. 2014-0527921E5 - "Exempt Trust" under s. 233.2(1)

Australian IPAC

An Australian "ipac select superwrap personal super plan" ("IPAC") was described as an Australian pension plan and the fund for which employer contributions, but not voluntary contributions, are taxed in the fund. Is an IPAC is considered an "exempt trust" such that it is exempt from being reported on Form T1135? After paraphrasing the exempt trust definition, CRA stated that "where the IPAC is a trust and meets all the conditions of an ‘exempt trust', then it would be exempt from the Form T1135 reporting."