I-3 - Taxation Act

Section 692.6 Disposition versions

2006-03-01

692.6. For the purposes of paragraph a of section 692.5, the following rules apply:

(a)  except where paragraph b applies, where a trust, in this paragraph and in section 692.7 referred to as the “transferor trust”, in a period that does not exceed one day, disposes of one or more properties in the period to one or more other trusts, there is deemed to be no resulting change in the beneficial ownership of those properties if

i.  the transferor trust receives no consideration for the disposition, and

ii.  as a consequence of the disposition, the value of each beneficiary’s beneficial ownership at the beginning of the period under the transferor trust in each particular property of the transferor trust, or group of two or more properties of the transferor trust that are identical to each other, is the same as the value of the beneficiary’s beneficial ownership at the end of the period under the transferor trust and the other trust or trusts in each particular property, or in property that was immediately before the disposition included in the group of identical properties referred to above; and

(b)  where a trust, in this paragraph referred to as the “transferor”, governed by a registered retirement savings plan or a registered retirement income fund transfers a property to a trust, in this paragraph referred to as the “transferee”, governed by a registered retirement savings plan or a registered retirement income fund, the transfer is deemed not to result in a change in the beneficial ownership of the property if the annuitant of the plan or fund that governs the transferor is also the annuitant of the plan or fund that governs the transferee.

2003, c. 2, s. 185.