I-3 - Taxation Act

Section 47.7 Disposition versions

2009-05-15

47.7. For the purposes of this division, “employee trust” means an arrangement in respect of which the trustee of the arrangement makes a valid election under paragraph c of the definition of “employee trust” in subsection 1 of section 248 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 and under which

(a)  payments are made by one or more employers to a trustee in trust solely to provide for the payment of benefits to employees or former employees of the employer or a person with whom the employer does not deal at arm’s length;

(b)  the right to a benefit referred to in subparagraph a vests only at the time of its payment;

(c)  the amount of a benefit referred to in subparagraph a does not depend on the individual’s position, performance or compensation as an employee; and

(d)  the trustee has, since the commencement of the arrangement, each year allocated to individuals who are beneficiaries under the trust, in such manner as is reasonable, an amount equal to the excess described in section 47.8.

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph c of the definition of “employee trust” in subsection 1 of section 248 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1982, c. 5, s. 19; 2009, c. 5, s. 45.

2006-03-01

47.7. For the purposes of this division, “employee trust” means an arrangement established after 1979, the trustee of which arrangement has elected to qualify it as an employee trust in the fiscal return filed within 90 days from the end of its first taxation year and under which

(a)  payments are made by one or more employers to a trustee in trust solely to provide for the payment of benefits to employees or former employees of the employer or a person with whom the employer does not deal at arm’s length;

(b)  the right to a benefit referred to in paragraph a vests only at the time of payment thereof;

(c)  the amount of a benefit referred to in paragraph a does not depend on the individual’s position, performance or compensation as an employee; and

(d)  the trustee has, since the commencement of the arrangement, each year allocated to individuals who are beneficiaries under the trust, in such manner as is reasonable, an amount equal to the excess contemplated in section 47.8.

1982, c. 5, s. 19.