Subsection 122(1) - Tax payable by inter vivos trust
Administrative Policy
9 March 1993 Memorandum (Tax Window, No. 29, p. 10, ¶2453)
Where the residuary beneficiaries of a non-spousal testamentary trust that provides for the distribution to a third beneficiary of all the...
Paragraph (c)
Paragraph 122(1)(c)
Articles
Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.
General effect of formula (p. 70)
[T]he amount: of the recovery tax is calculated in accordance with a complicated formula in paragraph 122(1) (c)...
Subsection 122(2) - Where subsection (1) does not apply
Cases
Robinson (Trustee Of) v. R., 98 DTC 6065, [1998] 1 CTC 272 (FCA)
An inter vivos trust that otherwise would have been grandfathered was found to be carrying on an active business in the year by virtue of being a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | limited partner carries on the active business of the partnership | 401 |
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust
A testator created a trust for the benefit of his mentally incapacitated son, with the trustees accorded the discretion to distribute income and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | potential liability of QDT trustee for s. 122(1)(c) recovery tax | 262 |
| Tax Topics - Income Tax Act - Section 122 - Subsection 122(3) - qualified disability trust | s. 122(1)(c) liability in year of death of disabled beneficiary | 55 |
Subsection 122(3)
qualified disability trust
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust
CRA confirmed that where the disabled beneficiary of a qualified disability trust dies during a year, this will result in the imposition of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 122 - Subsection 122(2) | recovery tax applies to undistributed income in a QDT at the time of the disabled beneficiary’s death | 213 |
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | potential liability of QDT trustee for s. 122(1)(c) recovery tax | 262 |
10 June 2016 STEP Roundtable Q. 4, 2016-0645801C6 - QDT & pref beneficiary election
Where, for example, four grandparents each established a trust for their mutual disabled grandchild under their wills, with one of the trusts...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(14) | preferred beneficiary election and qualified disability trust election potentially can coexist | 116 |
Finance
7 October 2016 APFF Financial Strategies and Instruments Roundtable, Q.7
[policy reasons for QDT graduated rates and requirement to distribute]
A...
Paragraph (a)
Subparagraph (a)(i)
Administrative Policy
7 June 2019 STEP Roundtable Q. 11, 2019-0805771C6 - Estate as Qualified Disability Trust
During its first 36 months, an estate with a single residuary beneficiary qualified as a graduated rate estate (GRE) and was not able to convert...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) | estate ceases to generate income when it is fully administered | 144 |
Paragraph (b)
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 6, 2016-0651741C6 F - Named beneficiary
Does a will designating the testator’s children or descendants as beneficiaries of the testamentary trust satisfy the “named as a...