I-3 - Taxation Act

Full text
7.9. For the purposes of this Part and the regulations, the following rules apply in respect of a property that is, at any time, subject to a usufruct, right of use or substitution:
(a)  the usufruct, right of use or substitution, as the case may be, is deemed to be at that time a trust or, if the usufruct, right of use or substitution, as the case may be, is created by will, a trust created by will;
(b)  the property is deemed
i.  if the usufruct, right of use or substitution, as the case may be, arises on the death of a testator, to have been transferred to the trust on and as a consequence of the death of the testator, and not otherwise, and
ii.  if the usufruct, right of use or substitution, as the case may be, arises otherwise, to have been transferred — at the time it first became subject to the usufruct, right of use or substitution, as the case may be — to the trust by the person who granted the usufruct, right of use or substitution; and
(c)  the property is deemed to be, throughout the period in which it is subject to the usufruct, right of use or substitution, as the case may be, held by the trust, and not otherwise.
1993, c. 16, s. 6; 1994, c. 22, s. 50; 2003, c. 9, s. 11; 2004, c. 8, s. 7; 2011, c. 1, s. 12.
7.9. For the purposes of this Part and the regulations, the following rules apply, subject to section 7.9.1:
(a)  a usufruct is deemed to be a trust, established by will where the usufruct was so established, and property subject to a usufruct is deemed to have been transferred to the trust and to be held in trust and not otherwise;
(b)  a right of use is deemed to be a trust, established by will where the right was so established, and property subject to such a right is deemed to have been transferred to the trust and to be held in trust and not otherwise;
(c)  a substitution is deemed to be a trust, established by will where the substitution was so established, and property subject to a substitution is deemed to have been transferred to the trust and to be held in trust and not otherwise;
(d)  property referred to in paragraphs a to c is deemed to have been transferred on the death of the testator and as a consequence thereof where the usufruct, the right of use or the substitution, as the case may be, was established by will.
1993, c. 16, s. 6; 1994, c. 22, s. 50; 2003, c. 9, s. 11; 2004, c. 8, s. 7.