I-3 - Taxation Act

Section 1121.7 Disposition versions

2017-12-07

1121.7. Despite any other provision of this Act and subject to the second paragraph, if a trust has made a valid election under subsection 1 of section 132.11 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), other than an election in respect of which the rules set out in subsection 1.1 of section 132.11 of that Act apply as a result of an application made by the trust under that subsection 1.1 and granted by the Minister of National Revenue before 20 December 2006, the following rules apply:

(a)  if a taxation year of the trust (determined for the purposes of the Income Tax Act) ends, because of paragraph a of subsection 1 of section 132.11 of that Act, on 15 December of a particular calendar year, the trust’s taxation year (determined for the purposes of this Act) that includes that date is deemed to end on that date; and

(b)  if a taxation year of the trust (determined for the purposes of the Income Tax Act) ends, because of paragraph a of subsection 1 of section 132.11 of that Act, on 15 December of a particular calendar year, each of its taxation years (determined for the purposes of this Act) that end after that date is deemed, subject to section 1121.7.1, to be the period that begins on 16 December of a calendar year and ends on 15 December of the following calendar year or at such earlier time as is determined under paragraph a or b of section 6.2, paragraph a.1 of section 785.1, paragraph b of section 785.5 or paragraph a.1 of section 851.22.23.

If, because of a particular election made under subsection 1 of section 132.11 of the Income Tax Act, a particular taxation year of a trust (determined for the purposes of that Act) ended on 15 December 2006 and if a taxation year of the trust (determined for the purposes of this Act) ended on 31 December 2005, the following rules apply:

(a)  if paragraph a of subsection 1.1 of section 132.11 of that Act does not apply in respect of the taxation year of the trust that follows the particular taxation year,

i.  subparagraph b of the first paragraph does not apply in respect of a taxation year of the trust (determined for the purposes of this Act) that began before 16 December 2007, and

ii.  the taxation year of the trust (determined for the purposes of this Act) that includes 15 December 2007 is deemed to end on that date and a new taxation year of the trust (determined for the purposes of this Act) is deemed to begin immediately after that date; and

(b)  if paragraph a of subsection 1.1 of section 132.11 of that Act applies in respect of the taxation year of the trust that follows the particular taxation year, the first paragraph applies as if the particular election had not been made.

Chapter V.2 of Title II of Book I of Part I applies in relation to an election made under subsection 1 of section 132.11 of the Income Tax Act.

2001, c. 53, s. 251; 2004, c. 8, s. 198; 2009, c. 5, s. 509; 2017, c. 29, s. 212.

2009-05-15

1121.7. Despite any other provision of this Act and subject to the second paragraph, if a trust has made a valid election under subsection 1 of section 132.11 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), other than an election in respect of which the rules set out in subsection 1.1 of section 132.11 of that Act apply as a result of an application made by the trust under that subsection 1.1 and granted by the Minister of National Revenue before 20 December 2006, the following rules apply:

(a)  if a taxation year of the trust (determined for the purposes of the Income Tax Act) ends, because of paragraph a of subsection 1 of section 132.11 of that Act, on 15 December of a particular calendar year, the trust’s taxation year (determined for the purposes of this Act) that includes that date is deemed to end on that date; and

(b)  if a taxation year of the trust (determined for the purposes of the Income Tax Act) ends, because of paragraph a of subsection 1 of section 132.11 of that Act, on 15 December of a particular calendar year, each of its taxation years (determined for the purposes of this Act) that end after that date is deemed, subject to section 1121.7.1, to be the period that begins on 16 December of a calendar year and ends on 15 December of the following calendar year or at such earlier time as is determined under paragraph b of section 785.5 or section 851.22.23.

If, because of a particular election made under subsection 1 of section 132.11 of the Income Tax Act, a particular taxation year of a trust (determined for the purposes of that Act) ended on 15 December 2006 and if a taxation year of the trust (determined for the purposes of this Act) ended on 31 December 2005, the following rules apply:

(a)  if paragraph a of subsection 1.1 of section 132.11 of that Act does not apply in respect of the taxation year of the trust that follows the particular taxation year,

i.  subparagraph b of the first paragraph does not apply in respect of a taxation year of the trust (determined for the purposes of this Act) that began before 16 December 2007, and

ii.  the taxation year of the trust (determined for the purposes of this Act) that includes 15 December 2007 is deemed to end on that date and a new taxation year of the trust (determined for the purposes of this Act) is deemed to begin immediately after that date; and

(b)  if paragraph a of subsection 1.1 of section 132.11 of that Act applies in respect of the taxation year of the trust that follows the particular taxation year, the first paragraph applies as if the particular election had not been made.

Chapter V.2 of Title II of Book I of Part I applies in relation to an election made under subsection 1 of section 132.11 of the Income Tax Act.

2001, c. 53, s. 251; 2004, c. 8, s. 198; 2009, c. 5, s. 509.

2006-03-01

1121.7. Notwithstanding any other provision of this Act, where a trust, other than a prescribed trust, that was a mutual fund trust on the 74th day after the end of a particular calendar year so elects in writing filed with the Minister with its fiscal return it is required to file for its taxation year that includes 15 December of the particular year, the following rules apply:

(a)  the trust’s taxation year that began before 16 December of the particular calendar year and, but for this paragraph, would have ended at the end of the particular calendar year or, where the first taxation year of the trust began after 15 December of the preceding calendar year and no fiscal return was filed for a taxation year of the trust that ended at the end of the preceding calendar year, at the end of the preceding calendar year, is deemed to end on 15 December of the particular calendar year;

(b)  where the trust’s taxation year ends on 15 December because of paragraph a, each subsequent taxation year of the trust is deemed, subject to section 1121.7.1, to be the period that begins on 16 December of a calendar year and ends on 15 December of the following calendar year or at such earlier time as is determined under paragraph b of section 785.5 or section 851.22.23; and

(c)  each fiscal period of a business or property of the trust that begins in a taxation year of the trust shall end no later than

i.  where the trust’s taxation year ends on 15 December because of paragraph a, at the end of that taxation year, and

ii.  where the trust’s taxation year is a taxation year subsequent to the taxation year referred to in subparagraph i, at the end of that subsequent taxation year.

2001, c. 53, s. 251; 2004, c. 8, s. 198.