I-3 - Taxation Act

Section 21.0.2 Disposition versions

2015-10-26

21.0.2. For the purposes of this chapter, the following rules apply:

(a)  persons are affiliated with themselves;

(b)  a person includes a partnership;

(c)  despite section 646, a trust does not include the trustee or other persons who own or control the trust property; and

(d)  for the purpose of determining whether a person is affiliated with a trust,

i.  if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be,

ii.  the interest of a person in a trust as a beneficiary is disregarded in determining whether the person deals at arm’s length with the trust if the person would, in the absence of the interest as a beneficiary, be considered to deal at arm’s length with the trust,

iii.  a trust is not a majority-interest beneficiary of another trust unless the trust has an interest as a beneficiary in the income or capital of the other trust, and

iv.  in determining whether a contributor to one trust is affiliated with a contributor to another trust, individuals connected by blood relationship, marriage or adoption are deemed to be affiliated with one another.

2000, c. 5, s. 11; 2005, c. 38, s. 48; 2015, c. 24, s. 13.

2006-03-01

21.0.2. For the purposes of this chapter, the following rules apply:

(a)  persons are affiliated with themselves;

(b)  a person includes a partnership;

(c)  despite section 646, a trust does not include the trustee or other persons who own or control the trust property; and

(d)  for the purpose of determining whether a person is affiliated with a trust,

i.  if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be,

ii.  the interest of a person in a trust as a beneficiary is disregarded in determining whether the person deals at arm’s length with the trust if the person would, in the absence of the interest as a beneficiary, be considered to deal at arm’s length with the trust,

iii.  a trust is not a majority-interest beneficiary of another trust unless the trust has an interest as a beneficiary in the income or capital of the other trust, and

iv.  in determining whether a contributor to one trust is affiliated with a contributor to another trust, individuals connected by blood, marriage or adoption are deemed to be affiliated with one another.

2000, c. 5, s. 11; 2005, c. 38, s. 48.