I-3 - Taxation Act

Section 597.0.9 Disposition versions

2015-12-04

597.0.9. Sections 597.0.10 and 597.0.11 apply to a trust or a person in respect of a trust if

(a)  at any time property of a trust (in this section and sections 597.0.10 and 597.0.11 referred to as the “original trust”) is transferred or loaned, directly or indirectly, in any manner whatever, to another trust (in this section and sections 597.0.10 and 597.0.11 referred to as the “transferee trust”);

(b)  the original trust

i.  is deemed to be resident in Canada immediately before that time under paragraph a of section 595,

ii.  would be deemed to be resident in Canada immediately before that time under paragraph a of section 595 if this chapter, as it read in its application to the taxation year 2013, were read without reference to paragraph a of the definition of “connected contributor” in the first paragraph of section 593 and paragraph a of the definition of “resident contributor” in that first paragraph, or

iii.  is an original trust to which subparagraph iii or iv of paragraph b of subsection 11 of section 94 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) applies; and

(c)  it is reasonable to conclude that one of the reasons the transfer or loan is made is to reduce or avoid a liability under this Part, where the liability arose, or would otherwise have arisen, because of the application of this chapter, or under Part I of the Income Tax Act, where the liability arose, or would otherwise have arisen, because of the application of section 94 of that Act.

2015, c. 36, s. 29.