Section 259

Subsection 259(3) - Election

Administrative Policy

2004 Ruling 2003-005206 -

A corporation that is an agent of a Province establishes wholly-owned corporations ("Investco's") that will qualify as s. 149(1)(o.2) corporations and which invest primarily in U.S. property (so that the Investcos rather than the pension plans which have placed funds with the Corporation for investment will be subject to U.S. tax filing obligations). Each Investco will be entitled to make the election under s. 259(3), and pursuant to s. 206(2.1) each Investco will be exempt from the application of s. 206(2).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 206 - Subsection 206(2.1) 80

26 April 2001 External T.I. 2001-007198 -

The election may be made by a master trust that does not meet the requirements of Regulation 5000(1.2). Once the election is made, it is not necessary for another election to be filed each time a unit of the trust is acquired by the taxpayer.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 259 - Subsection 259(4) 92

Subsection 259(4) - Requirement to provide information

Administrative Policy

26 April 2001 External T.I. 2001-007198 -

"The unitholders referred to in paragraph 259(4)(a) of the Act are those taxpayers who held units of the qualifying trust during the retroactive period covered by the election (up to 15 months prior to the day the election is filed) to the time that the election is revoked. However, because the notification must be filed not more than 30 days after making the election, this requirement is restricted to persons who held units during the period retroactively covered by the election up to a maximum of 30 days after the date the election is filed".

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 259 - Subsection 259(3) 44

Subsection 259(5) - Definitions

Administrative Policy

[1994] Tax Executives Institute Round Table, Q. 24 (C.T.O. "HAA7234-1 Look Through Trust Rules")

Re: application of definition where the percentage interests are determined under a dollar-allocation method rather than by explicit reference to units. "It may be possible to define a unit by using the dollar-allocation method, provided that it results in all of the interests of the beneficiaries under trust being identical to each other, except as to quantum."