I-3 - Taxation Act

Section 569.0.2 Disposition versions

2010-10-27

569.0.2. If the conditions in section 569.0.1 are met, in respect of a trust’s distribution of property to a taxpayer, Chapter VII, and Chapter VI and sections 21.2 to 21.3.1 as they apply for the purposes of Chapter VII, apply in respect of the distribution, with the necessary modifications, as if

(a)  the trust were a taxable Canadian corporation (in this section referred to as the “subsidiary”) other than a private corporation;

(b)  where the taxpayer is a SIFT wind-up entity, the taxpayer were a taxable Canadian corporation other than a private corporation;

(c)  the distribution were a winding-up of the subsidiary;

(d)  the taxpayer’s interest as a beneficiary under the trust were shares of a single class of shares of the capital stock of the subsidiary owned by the taxpayer;

(e)  section 558 deemed the taxpayer’s proceeds of disposition of the shares described in paragraph d and owned by the taxpayer immediately before the distribution to be equal to the adjusted cost base to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution;

(f)  each trust, a majority-interest beneficiary (within the meaning of section 21.0.1) of which is another trust that because of the application of this section is deemed to be a corporation, were a corporation; and

(g)  except for the purposes of sections 564.2 to 564.4.2, the taxpayer last acquired control of the subsidiary and of each corporation (including any trust that because of the application of this section is deemed to be a corporation) controlled by the subsidiary at the time at which the taxpayer last became a majority-interest beneficiary (within the meaning of section 21.0.1) of the trust.

2010, c. 25, s. 42.