I-3 - Taxation Act

Section 656.7 Disposition versions

2015-10-21

656.7. (Repealed).

1994, c. 22, s. 228; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 2015, c. 21, s. 215.

2006-03-01

656.7. For the purposes of section 656.5, a designated contributor in respect of a trust is

(a)  where the trust is described in subparagraph a of the first paragraph and in the second paragraph of section 653, or was, on 20 December 1991, a pre-1972 spousal trust, the individual who created, or whose will created, the trust;

(b)  where paragraph a does not apply and the trust is a testamentary trust at the end of the taxation year for which it makes an election under section 656.4, the individual as a consequence of whose death the trust was created; and

(c)  in the case of any other trust, the individual who was, or who was related to, an individual beneficially interested in the trust and who is designated by the trust in its election under section 656.4

i.  where, at each time in the relevant period in respect of the trust, the total amount of property transferred or loaned before that time by the designated individual, either directly or through another trust, to the trust

(1)  exceeded the total amount of property so transferred or loaned before that time by each other individual who was born before the designated individual and who, at any time, was related to any individual beneficially interested in the trust, and

(2)  was not less than the total amount of property so transferred or loaned before that time by each other individual who was born after the designated individual and who, at any time, was related to any individual beneficially interested in the trust,

ii.  where

(1)  no individual may be designated in respect of the trust because of subparagraph i,

(2)  the designated individual transferred or loaned property, either directly or through another trust, to the trust at any time before the end of the relevant period in respect of the trust, and

(3)  the designated individual was born before all other individuals who, at any time, were related to any individual beneficially interested in the trust or to any individual who transferred or loaned property to the trust before the end of the relevant period in respect of the trust, and who transferred or loaned property, either directly or through another trust, to the trust at any time before the end of the relevant period in respect of the trust, or

iii.  where throughout the relevant period in respect of the trust the property of the trust consisted primarily of

(1)  shares of the capital stock of a corporation controlled, on the day that the trust was created or at the beginning of the relevant period in respect of the trust, by the designated individual or by the designated individual and one or more other individuals born after, and related to, the designated individual, or all or substantially all of the value of which throughout the relevant period in respect of the trust derived from property transferred to the corporation by the designated individual or by the designated individual and one or more other individuals born after, and related to, the designated individual,

(2)  shares of the capital stock of a corporation all or substantially all of the value of which, throughout the part of the relevant period in respect of the trust throughout which the shares were held by the trust, derived from shares described in subparagraph 1,

(3)  property substituted for the shares described in subparagraph 1 or 2,

(4)  property attributable to profits, gains or distributions in respect of property described in subparagraphs 1 to 3, or

(5)  any combination of the properties described in subparagraphs 1 to 4.

1994, c. 22, s. 228; 1996, c. 39, s. 273; 1997, c. 3, s. 71.