I-3 - Taxation Act

Section 649 Disposition versions

2020-09-24

649. For the purposes of this Part, a trust is a unit trust if, at a particular time, it is an inter vivos trust in which the interest of each beneficiary is described by reference to units of the trust, and

(a)  the issued units of the trust representing a value of not less than 95% of the fair market value of all the issued units, determined without regard to any voting rights which may be attached to such units, are

i.  units which provide that the trust must accept, at the demand of the holder of such units and at prices determined and payable in accordance with the conditions attached to such units, the surrender, in whole or in part, of the fully paid units, and

ii.  units qualified in accordance with prescribed conditions relating to their redemption by the trust;

(b)  it meets the following conditions:

i.  throughout the taxation year in which the particular time occurs, in this paragraph referred to as the “current year”, the trust was resident in Canada,

ii.  throughout the period or periods, in this paragraph referred to as the “relevant periods”, that are in the current year and throughout which the conditions under paragraph a are not satisfied in respect of the trust, its only undertaking is

(1)  the investing of its funds in property, other than immovable property or a right in immovable property,

(2)  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or a right in immovable property, that is capital property of the trust, or

(3)  any combination of the activities described in subparagraphs 1 and 2,

iii.  throughout the relevant periods at least 80% of its property consists of any combination of

(1)  shares,

(2)  any property that, under the terms or conditions of which or under an agreement, is convertible into, is exchangeable for or confers a right to acquire, shares,

(3)  cash,

(4)  bonds, hypothecary claims, mortgages, debentures, notes and other similar obligations,

(5)  marketable securities,

(6)  immovable property situated in Canada and rights in such property, and

(7)  rights in or to any rental or royalty computed by reference to the volume or value of production from a natural accumulation of petroleum or natural gas in Canada, from an oil or gas well in Canada or from a mineral resource in Canada,

iv.  one of the following conditions is met:

(1)  not less than 95% of its income for the current year, determined without reference to sections 262 and 295.1 and paragraph a of section 657, is derived from, or from the disposition of, investments described in subparagraph iii, or

(2)  not less than 95% of its income for each of the relevant periods, determined without reference to sections 262 and 295.1 and paragraph a of section 657 and as though each of those periods were a taxation year, is derived from, or from the disposition of, investments described in subparagraph iii,

v.  throughout the relevant periods, not more than 10% of its property consists of bonds, securities or shares of capital stock of any one corporation or debtor other than the Government of Québec, the Government of Canada, the government of another province or a Canadian municipality, and

v.1.  where the trust would not be a unit trust at the particular time if this paragraph were read without reference to this subparagraph and subparagraph iii were read without reference to subparagraph 6, the units of the trust are listed at any time in the current year or in the following taxation year on a designated stock exchange located in Canada; or

vi.  (subparagraph repealed);

(c)  (paragraph repealed);

(d)  the following conditions are met:

i.  the fair market value of the property of the trust at the end of the year 1993 was primarily attributable to immovable property, or a right in immovable property,

ii.  the trust was a unit trust throughout any calendar year before the year 1994, and

iii.  the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph a or b of the definition of “qualified investment” in section 204 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), immovable property, or a right in immovable property, or any combination of those properties.

1972, c. 23, s. 486; 1973, c. 17, s. 71; 1987, c. 67, s. 128; 1993, c. 16, s. 242; 1996, c. 39, s. 173; 1997, c. 3, s. 71; 2000, c. 5, s. 140; 2001, c. 7, s. 68; 2003, c. 2, s. 151; 2005, c. 1, s. 127; 2010, c. 5, s. 53; 2015, c. 21, s. 213; 2020, c. 16, s. 96.

2015-10-21

649. For the purposes of this Part, a trust is a unit trust if, at a particular time, it is an inter vivos trust in which the interest of each beneficiary is described by reference to units of the trust, and

(a)  the issued units of the trust representing a value of not less than 95% of the fair market value of all the issued units, determined without regard to any voting rights which may be attached to such units, are

i.  units which provide that the trust must accept, at the demand of the holder of such units and at prices determined and payable in accordance with the conditions attached to such units, the surrender, in whole or in part, of the fully paid units, and

ii.  units qualified in accordance with prescribed conditions relating to their redemption by the trust;

(b)  it meets the following conditions:

i.  throughout the taxation year in which the particular time occurs, in this paragraph referred to as the “current year”, the trust was resident in Canada,

ii.  throughout the period or periods, in this paragraph referred to as the “relevant periods”, that are in the current year and throughout which the conditions under paragraph a are not satisfied in respect of the trust, its only undertaking is

(1)  the investing of its funds in property, other than immovable property or an interest in immovable property,

(2)  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or interest in immovable property, that is capital property of the trust, or

(3)  any combination of the activities described in subparagraphs 1 and 2,

iii.  throughout the relevant periods at least 80% of its property consists of any combination of

(1)  shares,

(2)  any property that, under the terms or conditions of which or under an agreement, is convertible into, is exchangeable for or confers a right to acquire, shares,

(3)  cash,

(4)  bonds, hypothecary claims, mortgages, debentures, notes and other similar obligations,

(5)  marketable securities,

(6)  immovable property situated in Canada and interests in such property, and

(7)  rights to and interests in any rental or royalty computed by reference to the volume or value of production from a natural accumulation of petroleum or natural gas in Canada, from an oil or gas well in Canada or from a mineral resource in Canada,

iv.  one of the following conditions is met:

(1)  not less than 95% of its income for the current year, determined without reference to sections 262 and 295.1 and paragraph a of section 657, is derived from, or from the disposition of, investments described in subparagraph iii, or

(2)  not less than 95% of its income for each of the relevant periods, determined without reference to sections 262 and 295.1 and paragraph a of section 657 and as though each of those periods were a taxation year, is derived from, or from the disposition of, investments described in subparagraph iii,

v.  throughout the relevant periods, not more than 10% of its property consists of bonds, securities or shares of capital stock of any one corporation or debtor other than the Government of Québec, the Government of Canada, the government of another province or a Canadian municipality, and

v.1.  where the trust would not be a unit trust at the particular time if this paragraph were read without reference to this subparagraph and subparagraph iii were read without reference to subparagraph 6, the units of the trust are listed at any time in the current year or in the following taxation year on a designated stock exchange located in Canada; or

vi.  (subparagraph repealed);

(c)  (paragraph repealed);

(d)  the following conditions are met:

i.  the fair market value of the property of the trust at the end of the year 1993 was primarily attributable to immovable property, or an interest in immovable property,

ii.  the trust was a unit trust throughout any calendar year before the year 1994, and

iii.  the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph a or b of the definition of “qualified investment” in section 204 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), immovable property, or an interest in immovable property, or any combination of those properties.

1972, c. 23, s. 486; 1973, c. 17, s. 71; 1987, c. 67, s. 128; 1993, c. 16, s. 242; 1996, c. 39, s. 173; 1997, c. 3, s. 71; 2000, c. 5, s. 140; 2001, c. 7, s. 68; 2003, c. 2, s. 151; 2005, c. 1, s. 127; 2010, c. 5, s. 53; 2015, c. 21, s. 213.

2010-04-20

649. For the purposes of this Part, a trust is a unit trust if, at a particular time, it is an inter vivos trust in which the interest of each beneficiary is described by reference to units of the trust, and

(a)  the issued units of the trust representing a value of not less than 95% of the fair market value of all the issued units, determined without regard to any voting rights which may be attached to such units, are

i.  units which provide that the trust must accept, at the demand of the holder of such units and at prices determined and payable in accordance with the conditions attached to such units, the surrender, in whole or in part, of the fully paid units, and

ii.  units qualified in accordance with prescribed conditions relating to their redemption by the trust;

(b)  it meets the following conditions:

i.  throughout the taxation year in which the particular time occurs, in this paragraph referred to as the “current year”, the trust was resident in Canada,

ii.  throughout the period or periods, in this paragraph referred to as the “relevant periods”, that are in the current year and throughout which the conditions under paragraph a are not satisfied in respect of the trust, its only undertaking is

(1)  the investing of its funds in property, other than immovable property or an interest in immovable property,

(2)  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or interest in immovable property, that is capital property of the trust, or

(3)  any combination of the activities described in subparagraphs 1 and 2,

iii.  throughout the relevant periods at least 80% of its property consists of any combination of

(1)  shares,

(2)  any property that, under the terms or conditions of which or under an agreement, is convertible into, is exchangeable for or confers a right to acquire, shares,

(3)  cash,

(4)  bonds, hypothecary claims, mortgages, debentures, notes and other similar obligations,

(5)  marketable securities,

(6)  immovable property situated in Canada and interests in such property, and

(7)  rights to and interests in any rental or royalty computed by reference to the volume or value of production from a natural accumulation of petroleum or natural gas in Canada, from an oil or gas well in Canada or from a mineral resource in Canada,

iv.  one of the following conditions is met:

(1)  not less than 95% of its income for the current year, determined without reference to section 295.1 and paragraph a of section 657, is derived from, or from the disposition of, investments described in subparagraph iii, or

(2)  not less than 95% of its income for each of the relevant periods, determined without reference to section 295.1 and paragraph a of section 657 and as though each of those periods were a taxation year, is derived from, or from the disposition of, investments described in subparagraph iii,

v.  throughout the relevant periods, not more than 10% of its property consists of bonds, securities or shares of capital stock of any one corporation or debtor other than the Government of Québec, the Government of Canada, the government of another province or a Canadian municipality, and

v.1.  where the trust would not be a unit trust at the particular time if this paragraph were read without reference to this subparagraph and subparagraph iii were read without reference to subparagraph 6, the units of the trust are listed at any time in the current year or in the following taxation year on a designated stock exchange located in Canada; or

vi.  (subparagraph repealed);

(c)  (paragraph repealed);

(d)  the following conditions are met:

i.  the fair market value of the property of the trust at the end of the year 1993 was primarily attributable to immovable property, or an interest in immovable property,

ii.  the trust was a unit trust throughout any calendar year before the year 1994, and

iii.  the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph a or b of the definition of “qualified investment” in section 204 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), immovable property, or an interest in immovable property, or any combination of those properties.

1972, c. 23, s. 486; 1973, c. 17, s. 71; 1987, c. 67, s. 128; 1993, c. 16, s. 242; 1996, c. 39, s. 173; 1997, c. 3, s. 71; 2000, c. 5, s. 140; 2001, c. 7, s. 68; 2003, c. 2, s. 151; 2005, c. 1, s. 127; 2010, c. 5, s. 53.

2006-03-01

649. For the purposes of this Part, a trust is a unit trust if, at a particular time, it is an inter vivos trust in which the interest of each beneficiary is described by reference to units of the trust, and:

(a)  the issued units of the trust representing a value of not less than 95% of the fair market value of all the issued units, determined without regard to any voting rights which may be attached to such units, are:

i.  units which provide that the trust must accept, at the demand of the holder of such units and at prices determined and payable in accordance with the conditions attached to such units, the surrender, in whole or in part, of the fully paid units, and

ii.  units qualified in accordance with prescribed conditions relating to their redemption by the trust;

(b)  it meets the following conditions:

i.  throughout the taxation year in which the particular time occurs, in this paragraph referred to as the “current year”, the trust was resident in Canada,

ii.  throughout the period or periods, in this paragraph referred to as the “relevant periods”, that are in the current year and throughout which the conditions under paragraph a are not satisfied in respect of the trust, its only undertaking is

(1)  the investing of its funds in property, other than immovable property or an interest in immovable property,

(2)  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or interest in immovable property, that is capital property of the trust, or

(3)  any combination of the activities described in subparagraphs 1 and 2,

iii.  throughout the relevant periods at least 80% of its property consists of any combination of

(1)  shares,

(2)  any property that, under the terms or conditions of which or under an agreement, is convertible into, is exchangeable for or confers a right to acquire, shares,

(3)  cash,

(4)  bonds, hypothecary claims, mortgages, debentures, notes and other similar obligations,

(5)  marketable securities,

(6)  immovable property situated in Canada and interests in such property, and

(7)  rights to and interests in any rental or royalty computed by reference to the volume or value of production from a natural accumulation of petroleum or natural gas in Canada, from an oil or gas well in Canada or from a mineral resource in Canada,

iv.  one of the following conditions is met:

(1)  not less than 95% of its income for the current year, determined without reference to section 295.1 and paragraph a of section 657, is derived from, or from the disposition of, investments described in subparagraph iii, or

(2)  not less than 95% of its income for each of the relevant periods, determined without reference to section 295.1 and paragraph a of section 657 and as though each of those periods were a taxation year, is derived from, or from the disposition of, investments described in subparagraph iii,

v.  throughout the relevant periods, not more than 10% of its property consists of bonds, securities or shares of capital stock of any one corporation or debtor other than the Government of Québec, the Government of Canada, the government of another province or a Canadian municipality,

v.1.  where the trust would not be a unit trust at the particular time if this paragraph were read without reference to this subparagraph and subparagraph iii were read without reference to subparagraph 6, the units of the trust are listed at any time in the current year or in the following taxation year on a Canadian stock exchange; and

vi.  (subparagraph repealed);

(c)  (paragraph repealed);

(d)  the following conditions are met:

i.  the fair market value of the property of the trust at the end of the year 1993 was primarily attributable to immovable property, or an interest in immovable property,

ii.  the trust was a unit trust throughout any calendar year before the year 1994, and

iii.  the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph a or b of the definition of “qualified investment” in section 204 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), immovable property, or an interest in immovable property, or any combination of those properties.

1972, c. 23, s. 486; 1973, c. 17, s. 71; 1987, c. 67, s. 128; 1993, c. 16, s. 242; 1996, c. 39, s. 173; 1997, c. 3, s. 71; 2000, c. 5, s. 140; 2001, c. 7, s. 68; 2003, c. 2, s. 151; 2005, c. 1, s. 127.