I-3 - Taxation Act

Section 592.8 Disposition versions

2024-05-07

592.8. The rules of section 592.9 apply at any time, for the specified purpose provided for in section 592.10, in respect of a taxpayer resident in Canada in relation to a trust if

(a)  a corporation not resident in Canada is at that time beneficially interested in the trust;

(b)  the corporation not resident in Canada is at that time a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest, within the meaning of paragraph m of subsection 2 of section 95 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(c)  the trust is at that time a specified trust;

(d)  the total fair market value at that time of all fixed interests of a class in the trust held by the corporation not resident in Canada, or persons or partnerships that do not deal at arm’s length with the corporation, is equal to at least 10% of the fair market value at that time of all fixed interests of the class; and

(e)  unless the corporation not resident in Canada first acquires a beneficial interest in the trust at that time or first becomes a foreign affiliate of the taxpayer at that time, immediately before that time the rules of section 592.9 applied

i.  in respect of the taxpayer in relation to the trust, or

ii.  in respect of a corporation resident in Canada that, immediately before that time, did not deal at arm’s length with the taxpayer, in relation to the trust.

2017, c. 1, s. 146; 2024, c. 11, s. 55.

2017-02-08

592.8. The rules of section 592.9 apply at any time, for the specified purpose provided for in section 592.10, in respect of a taxpayer resident in Canada in relation to a trust if

(a)  a corporation not resident in Canada is at that time beneficially interested in the trust;

(b)  the corporation not resident in Canada is at that time a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest, within the meaning of paragraph m of subsection 2 of section 95 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(c)  the trust is at that time an Australian trust;

(d)  the total fair market value at that time of all fixed interests of a class in the trust held by the corporation not resident in Canada, or persons or partnerships that do not deal at arm’s length with the corporation, is equal to at least 10% of the fair market value at that time of all fixed interests of the class; and

(e)  unless the corporation not resident in Canada first acquires a beneficial interest in the trust at that time, immediately before that time section 592.9 applied

i.  to the taxpayer in relation to the trust, or

ii.  to a corporation resident in Canada that, immediately before that time, did not deal at arm’s length with the taxpayer, in relation to the trust.

2017, c. 1, s. 146.