I-3 - Taxation Act

Section 688.0.0.1 Disposition versions

2019-06-19

688.0.0.1. If a trust makes a distribution of a property to a beneficiary under the trust in full or partial satisfaction of the beneficiary’s capital interest in the trust and makes a valid election under subsection 2.001 of section 107 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of the distribution of property, section 688 does not apply to the distribution if

(a)  the trust is resident in Canada at the time of the distribution;

(b)  the property is taxable Canadian property; or

(c)  the property is capital property used in, or property included in the inventory of, a business carried on by the trust through an establishment in Canada immediately before the time of the distribution.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 2.001 of section 107 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2003, c. 2, s. 173; 2005, c. 1, s. 134; 2009, c. 5, s. 217; 2019, c. 14, s. 176.

2009-05-15

688.0.0.1. If a trust makes a distribution of a property to a beneficiary under the trust in full or partial satisfaction of the beneficiary’s capital interest in the trust and makes a valid election under subsection 2.001 of section 107 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of the distribution of property, section 688 does not apply to the distribution if

(a)  the trust is resident in Canada at the time of the distribution;

(b)  the property is taxable Canadian property; or

(c)  the property is capital property used in, incorporeal capital property in respect of, or property included in the inventory of, a business carried on by the trust through an establishment in Canada immediately before the time of the distribution.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 2.001 of section 107 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2003, c. 2, s. 173; 2005, c. 1, s. 134; 2009, c. 5, s. 217.

2006-03-01

688.0.0.1. Where a trust makes a distribution of a property to a beneficiary under the trust in full or partial satisfaction of the beneficiary’s capital interest in the trust and so elects in prescribed form filed with the Minister with the trust’s fiscal return for the taxation year in which the distribution occurred, section 688 does not apply to the distribution if

(a)  the trust is resident in Canada at the time of the distribution;

(b)  the property is taxable Canadian property; or

(c)  the property is capital property used in, incorporeal capital property in respect of, or property included in the inventory of, a business carried on by the trust through an establishment in Canada immediately before the time of the distribution.

2003, c. 2, s. 173; 2005, c. 1, s. 134.