I-3 - Taxation Act

Section 595 Disposition versions

2020-09-24

595. Where, but for this section, a trust would not be resident in Canada at a specified time in a particular taxation year and, at that time, there is a resident contributor to the trust or a resident beneficiary under the trust, the following rules apply, unless the trust is an exempt foreign trust at that time:

(a)  the trust is deemed to be resident in Canada throughout the particular taxation year for the purpose of

i.  computing the trust’s income for the particular year,

ii.  applying Chapter V of Title XII (except sections 669.3 and 669.4) and section 688.1 in respect of the trust and a beneficiary under the trust,

iii.  applying subparagraph 3 of subparagraph i.1 of paragraph n of section 257, paragraph c of section 597.1, section 688.0.0.2 and Part II, in respect of a beneficiary under the trust,

iv.  applying section 733.1,

v.  determining the rights and obligations of the trust under Book IX, and

vi.  determining whether a foreign affiliate of a taxpayer (other than the trust) is a controlled foreign affiliate of the taxpayer;

(b)  no deduction is to be made under section 146 by the trust in computing its income for the particular taxation year, and for the purpose of applying section 146.1 and Chapter I of Title III of Book V to the trust for the particular taxation year, the following rules apply:

i.  in determining the non-business-income tax (within the meaning assigned by section 772.2 for the purposes of this section) paid by the trust for the particular taxation year, paragraph b of the definition of that expression does not apply, and

ii.  where, at that specified time, the trust is resident in a country other than Canada,

(1)  the trust’s income for the particular taxation year (other than income—not including dividends or interest—from sources in Canada) is deemed to be from sources in that country and not to be from any other source, and

(2)  the business-income tax (within the meaning assigned by section 772.2), and the non-business-income tax, paid by the trust for the particular taxation year are deemed to be paid by the trust to the government of that country and not to any other government;

(c)  where section 94 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) did not apply to deem, for the purposes of that Act, the trust to be resident in Canada throughout its taxation year (in this paragraph referred to as the “preceding year”) immediately preceding the particular taxation year, the trust is deemed to have

i.  immediately before the end of the preceding year, disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) held by the trust at that time for proceeds of disposition equal to its fair market value at that time, and

ii.  at the beginning of the particular taxation year, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(d)  where section 94 of the Income Tax Act applied to deem, for the purposes of that Act, the trust to be resident in Canada for its last taxation year that ended before 1 January 2007, the trust is deemed, from the particular taxation year, to have

i.  disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) at the time the trust is deemed to have disposed of the property under section 128.1 of the Income Tax Act, because of the application of that section 94, for proceeds of disposition equal to the proceeds determined at that time under that section 128.1, and

ii.  at the time the trust is deemed to have acquired the property under section 128.1 of the Income Tax Act, because of the application of that section 94, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(e)  if the trust (in this paragraph referred to as the “particular trust”) is an electing trust in respect of the particular taxation year, the following rules apply:

i.  an inter vivos trust (in this paragraph referred to as the “non-resident portion trust”) is deemed for the purposes of this Act (other than for the purposes of the first and second paragraphs of section 647) to be created at the first time at which the particular trust exists in its first taxation year in respect of which the particular trust is an electing trust and to continue in existence until the earliest of

(1)  the time at which the particular trust ceases to be resident in Canada because of section 597 or 597.0.1,

(2)  the time at which the particular trust ceases to exist, and

(3)  the time at which the particular trust becomes resident in Canada otherwise than because of this section,

ii.  all of the particular trust’s property that is part of the particular trust’s non-resident portion is deemed to be the property of the non-resident portion trust and not to be, except for the purposes of this paragraph and the definition of “electing trust” in the first paragraph of section 593, the particular trust’s property,

iii.  the terms and conditions of, and rights and obligations of beneficiaries under, the particular trust (determined with reference to all the circumstances including the terms of a trust, an intention, the laws of a country or the existence of an agreement, a memorandum, a letter of wishes or any other arrangement) are deemed to be the terms and conditions of, and rights and obligations of beneficiaries under, the non-resident portion trust,

iv.  the trustees of the particular trust are deemed to be the trustees of the non-resident portion trust,

v.  the beneficiaries under the particular trust are deemed to be the beneficiaries under the non-resident portion trust,

vi.  the non-resident portion trust is deemed not to have a resident contributor or connected contributor to it,

vii.  the non-resident portion trust is deemed to be, without affecting the liability of its trustees for their own income tax, in respect of its property an individual,

viii.  if all or part of property becomes at a particular time part of the particular trust’s non-resident portion and immediately before the particular time the property or that part of property was part of its resident portion, the particular trust is deemed to have transferred at the particular time the property or that part of property to the non-resident portion trust,

ix.  if all or part of property becomes at a particular time part of the particular trust’s resident portion and immediately before the particular time the property or that part of property was part of its non-resident portion, the non-resident portion trust is deemed to have transferred at the particular time the property or that part of property to the particular trust,

x.  the particular trust and the non-resident portion trust are deemed at all times to be affiliated with each other and to not deal with each other at arm’s length,

xi.  the particular trust has solidarily with the non-resident portion trust the rights and obligations of the non-resident portion trust in respect of any taxation year under Book IX, and the Tax Administration Act (chapter A-6.002) applies in respect of those rights and obligations, and

xii.  if the non-resident portion trust ceases to exist at a particular time determined in accordance with any of subparagraphs 1 to 3 of subparagraph i, the following rules apply:

(1)  the non-resident portion trust is deemed, at the time (in this subparagraph xii referred to as the “disposition time”) that is immediately before the time that is immediately before the particular time, to have disposed of each of its properties that is property described in any of subparagraphs i to iv of paragraph b of section 785.1 for proceeds of disposition equal to the cost amount to it of the property at the disposition time and of each of its other properties for proceeds of disposition equal to its fair market value of the property at the disposition time,

(2)  the particular trust is deemed to have acquired, at the time that is immediately before the particular time, each property described in subparagraph 1 at a cost equal to the proceeds of disposition determined under subparagraph 1 in respect of the property, and

(3)  each person or partnership that is at the time immediately before the particular time a beneficiary under the non-resident portion trust is deemed at the disposition time to have disposed of the beneficiary’s interest as a beneficiary under the non-resident portion trust for proceeds of disposition equal to the beneficiary’s cost amount in the interest at the disposition time and to have ceased to be, other than for purposes of this subparagraph 3, a beneficiary under the non-resident portion trust;

(f)  where there is, at that time, a resident contributor to the trust that is a tax-liable taxpayer in respect of the trust or a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust if a connected contributor to the trust at that time is a tax-liable taxpayer in respect of the trust at that time, the trust is deemed, for the purpose of applying Book II and determining the trust’s tax liability under this Part, to be resident in Québec on the last day of the particular year and, where the trust is, in respect of the particular year, an electing trust or a trust that does not meet the condition of paragraph a of the definition of “electing trust” in the first paragraph of section 593, its income for the particular year is deemed to be equal to the portion of that income, otherwise determined, that may reasonably be considered as being attributable to property that was contributed to the trust at or before that time by a contributor that is at that time a resident contributor to the trust and a tax-liable taxpayer in respect of the trust or, if there is at that time a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust, a connected contributor to the trust and a tax-liable taxpayer in respect of the trust; and

(g)  each person that at any time in the particular taxation year is a resident contributor to the trust (other than an electing contributor to the trust at the specified time) or a resident beneficiary under the trust and that is a tax-liable taxpayer in respect of the trust at any time has, solidarily with the trust and with each other such person that is such a resident contributor or such a resident beneficiary, the rights and obligations of the trust in respect of the particular taxation year under Book IX, and the Tax Administration Act applies in respect of those rights and obligations.

1975, c. 22, s. 164; 1997, c. 3, s. 71; 2015, c. 36, s. 28; 2019, c. 14, s. 158; 2020, c. 16, s. 86.

2019-06-19

595. Where, but for this section, a trust would not be resident in Canada at a specified time in a particular taxation year and, at that time, there is a resident contributor to the trust or a resident beneficiary under the trust, the following rules apply, unless the trust is an exempt foreign trust at that time:

(a)  the trust is deemed to be resident in Canada throughout the particular taxation year for the purpose of

i.  computing the trust’s income for the particular year,

ii.  applying Chapter V of Title XII (except sections 669.3 and 669.4) and section 688.1 in respect of the trust and a beneficiary under the trust,

iii.  applying subparagraph 3 of subparagraph i.1 of paragraph n of section 257, paragraph c of section 597.1, section 688.0.0.2 and Part II, in respect of a beneficiary under the trust,

iv.  applying section 733.1,

v.  determining the rights and obligations of the trust under Book IX, and

vi.  determining whether a foreign affiliate of a taxpayer (other than the trust) is a controlled foreign affiliate of the taxpayer;

(b)  no deduction is to be made under section 146 by the trust in computing its income for the particular taxation year, and for the purpose of applying section 146.1 and Chapter I of Title III of Book V to the trust for the particular taxation year, the following rules apply:

i.  in determining the non-business-income tax (within the meaning assigned by section 772.2 for the purposes of this section) paid by the trust for the particular taxation year, paragraph b of the definition of that expression does not apply, and

ii.  where, at that specified time, the trust is resident in a country other than Canada,

(1)  the trust’s income for the particular taxation year is deemed to be from sources in that country and not to be from any other source, and

(2)  the business-income tax (within the meaning assigned by section 772.2), and the non-business-income tax, paid by the trust for the particular taxation year are deemed to be paid by the trust to the government of that country and not to any other government;

(c)  where section 94 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) did not apply to deem, for the purposes of that Act, the trust to be resident in Canada throughout its taxation year (in this paragraph referred to as the “preceding year”) immediately preceding the particular taxation year, the trust is deemed to have

i.  immediately before the end of the preceding year, disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) held by the trust at that time for proceeds of disposition equal to its fair market value at that time, and

ii.  at the beginning of the particular taxation year, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(d)  where section 94 of the Income Tax Act applied to deem, for the purposes of that Act, the trust to be resident in Canada for its last taxation year that ended before 1 January 2007, the trust is deemed, from the particular taxation year, to have

i.  disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) at the time the trust is deemed to have disposed of the property under section 128.1 of the Income Tax Act, because of the application of that section 94, for proceeds of disposition equal to the proceeds determined at that time under that section 128.1, and

ii.  at the time the trust is deemed to have acquired the property under section 128.1 of the Income Tax Act, because of the application of that section 94, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(e)  if the trust (in this paragraph referred to as the “particular trust”) is an electing trust in respect of the particular taxation year, the following rules apply:

i.  an inter vivos trust (in this paragraph referred to as the “non-resident portion trust”) is deemed for the purposes of this Act (other than for the purposes of the first and second paragraphs of section 647) to be created at the first time at which the particular trust exists in its first taxation year in respect of which the particular trust is an electing trust and to continue in existence until the earliest of

(1)  the time at which the particular trust ceases to be resident in Canada because of section 597 or 597.0.1,

(2)  the time at which the particular trust ceases to exist, and

(3)  the time at which the particular trust becomes resident in Canada otherwise than because of this section,

ii.  all of the particular trust’s property that is part of the particular trust’s non-resident portion is deemed to be the property of the non-resident portion trust and not to be, except for the purposes of this paragraph and the definition of “electing trust” in the first paragraph of section 593, the particular trust’s property,

iii.  the terms and conditions of, and rights and obligations of beneficiaries under, the particular trust (determined with reference to all the circumstances including the terms of a trust, an intention, the laws of a country or the existence of an agreement, a memorandum, a letter of wishes or any other arrangement) are deemed to be the terms and conditions of, and rights and obligations of beneficiaries under, the non-resident portion trust,

iv.  the trustees of the particular trust are deemed to be the trustees of the non-resident portion trust,

v.  the beneficiaries under the particular trust are deemed to be the beneficiaries under the non-resident portion trust,

vi.  the non-resident portion trust is deemed not to have a resident contributor or connected contributor to it,

vii.  the non-resident portion trust is deemed to be, without affecting the liability of its trustees for their own income tax, in respect of its property an individual,

viii.  if all or part of property becomes at a particular time part of the particular trust’s non-resident portion and immediately before the particular time the property or that part of property was part of its resident portion, the particular trust is deemed to have transferred at the particular time the property or that part of property to the non-resident portion trust,

ix.  if all or part of property becomes at a particular time part of the particular trust’s resident portion and immediately before the particular time the property or that part of property was part of its non-resident portion, the non-resident portion trust is deemed to have transferred at the particular time the property or that part of property to the particular trust,

x.  the particular trust and the non-resident portion trust are deemed at all times to be affiliated with each other and to not deal with each other at arm’s length,

xi.  the particular trust has solidarily with the non-resident portion trust the rights and obligations of the non-resident portion trust in respect of any taxation year under Book IX, and the Tax Administration Act (chapter A-6.002) applies in respect of those rights and obligations, and

xii.  if the non-resident portion trust ceases to exist at a particular time determined in accordance with any of subparagraphs 1 to 3 of subparagraph i, the following rules apply:

(1)  the non-resident portion trust is deemed, at the time (in this subparagraph xii referred to as the “disposition time”) that is immediately before the time that is immediately before the particular time, to have disposed of each of its properties that is property described in any of subparagraphs i to iv of paragraph b of section 785.1 for proceeds of disposition equal to the cost amount to it of the property at the disposition time and of each of its other properties for proceeds of disposition equal to its fair market value of the property at the disposition time,

(2)  the particular trust is deemed to have acquired, at the time that is immediately before the particular time, each property described in subparagraph 1 at a cost equal to the proceeds of disposition determined under subparagraph 1 in respect of the property, and

(3)  each person or partnership that is at the time immediately before the particular time a beneficiary under the non-resident portion trust is deemed at the disposition time to have disposed of the beneficiary’s interest as a beneficiary under the non-resident portion trust for proceeds of disposition equal to the beneficiary’s cost amount in the interest at the disposition time and to have ceased to be, other than for purposes of this subparagraph 3, a beneficiary under the non-resident portion trust;

(f)  where there is, at that time, a resident contributor to the trust that is a tax-liable taxpayer in respect of the trust or a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust if a connected contributor to the trust at that time is a tax-liable taxpayer in respect of the trust at that time, the trust is deemed, for the purpose of applying Book II and determining the trust’s tax liability under this Part, to be resident in Québec on the last day of the particular year and, where the trust is, in respect of the particular year, an electing trust or a trust that does not meet the condition of paragraph a of the definition of “electing trust” in the first paragraph of section 593, its income for the particular year is deemed to be equal to the portion of that income, otherwise determined, that may reasonably be considered as being attributable to property that was contributed to the trust at or before that time by a contributor that is at that time a resident contributor to the trust and a tax-liable taxpayer in respect of the trust or, if there is at that time a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust, a connected contributor to the trust and a tax-liable taxpayer in respect of the trust; and

(g)  each person that at any time in the particular taxation year is a resident contributor to the trust (other than an electing contributor to the trust at the specified time) or a resident beneficiary under the trust and that is a tax-liable taxpayer in respect of the trust at any time has, solidarily with the trust and with each other such person that is such a resident contributor or such a resident beneficiary, the rights and obligations of the trust in respect of the particular taxation year under Book IX, and the Tax Administration Act applies in respect of those rights and obligations.

1975, c. 22, s. 164; 1997, c. 3, s. 71; 2015, c. 36, s. 28; 2019, c. 14, s. 158.

2015-12-04

595. Where, but for this section, a trust would not be resident in Canada at a specified time in a particular taxation year and, at that time, there is a resident contributor to the trust or a resident beneficiary under the trust, the following rules apply, unless the trust is an exempt foreign trust at that time:

(a)  the trust is deemed to be resident in Canada throughout the particular taxation year for the purpose of

i.  computing the trust’s income for the particular year,

ii.  applying Chapter V of Title XII (except sections 669.3 and 669.4) and section 688.1 in respect of the trust and a beneficiary under the trust,

iii.  applying subparagraph 3 of subparagraph i.1 of paragraph n of section 257, paragraph c of section 597.1, section 688.0.0.2 and Part II, in respect of a beneficiary under the trust,

iv.  applying section 733.1,

v.  determining the rights and obligations of the trust under Book IX, and

vi.  determining whether a foreign affiliate of a taxpayer (other than the trust) is a controlled foreign affiliate of the taxpayer;

(b)  no deduction is to be made under section 146 by the trust in computing its income for the particular taxation year, and for the purpose of applying section 146.1 and Chapter I of Title III of Book V to the trust for the particular taxation year, the following rules apply:

i.  in determining the non-business-income tax (within the meaning assigned by section 772.2 for the purposes of this section) paid by the trust for the particular taxation year, paragraph b of the definition of that expression does not apply, and

ii.  where, at that specified time, the trust is resident in a country other than Canada,

(1)  the trust’s income for the particular taxation year is deemed to be from sources in that country and not to be from any other source, and

(2)  the business-income tax (within the meaning assigned by section 772.2), and the non-business-income tax, paid by the trust for the particular taxation year are deemed to be paid by the trust to the government of that country and not to any other government;

(c)  where section 94 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) did not apply to deem, for the purposes of that Act, the trust to be resident in Canada throughout its taxation year (in this paragraph referred to as the “preceding year”) immediately preceding the particular taxation year, the trust is deemed to have

i.  immediately before the end of the preceding year, disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) held by the trust at that time for proceeds of disposition equal to its fair market value at that time, and

ii.  at the beginning of the particular taxation year, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(d)  where section 94 of the Income Tax Act applied to deem, for the purposes of that Act, the trust to be resident in Canada for its last taxation year that ended before 1 January 2007, the trust is deemed, from the particular taxation year, to have

i.  disposed of each property (other than property described in any of subparagraphs i to iv of paragraph b of section 785.1) at the time the trust is deemed to have disposed of the property under section 128.1 of the Income Tax Act, because of the application of that section 94, for proceeds of disposition equal to the proceeds determined at that time under that section 128.1, and

ii.  at the time the trust is deemed to have acquired the property under section 128.1 of the Income Tax Act, because of the application of that section 94, acquired each of the properties deemed to be disposed of in accordance with subparagraph i at a cost equal to the property’s proceeds of disposition determined under subparagraph i;

(e)  if the trust (in this paragraph referred to as the “particular trust”) is an electing trust in respect of the particular taxation year, the following rules apply:

i.  an inter vivos trust (in this paragraph referred to as the “non-resident portion trust”) is deemed for the purposes of this Act (other than for the purposes of the first and second paragraphs of section 647) to be created at the first time at which the particular trust exists in its first taxation year in respect of which the particular trust is an electing trust and to continue in existence until the earliest of

(1)  the time at which the particular trust ceases to be resident in Canada because of section 597 or 597.0.1,

(2)  the time at which the particular trust ceases to exist, and

(3)  the time at which the particular trust becomes resident in Canada otherwise than because of this section,

ii.  all of the particular trust’s property that is part of the particular trust’s non-resident portion is deemed to be the property of the non-resident portion trust and not to be, except for the purposes of this paragraph and the definition of “electing trust” in the first paragraph of section 593, the particular trust’s property,

iii.  the terms and conditions of, and rights and obligations of beneficiaries under, the particular trust (determined with reference to all the circumstances including the terms of a trust, an intention, the laws of a country or the existence of an agreement, a memorandum, a letter of wishes or any other arrangement) are deemed to be the terms and conditions of, and rights and obligations of beneficiaries under, the non-resident portion trust,

iv.  the trustees of the particular trust are deemed to be the trustees of the non-resident portion trust,

v.  the beneficiaries under the particular trust are deemed to be the beneficiaries under the non-resident portion trust,

vi.  the non-resident portion trust is deemed not to have a resident contributor or connected contributor to it,

vii.  the non-resident portion trust is deemed to be, without affecting the liability of its trustees for their own income tax, in respect of its property an individual,

viii.  if all or part of property becomes at a particular time part of the particular trust’s non-resident portion and immediately before the particular time the property or that part of property was part of its resident portion, the particular trust is deemed to have transferred at the particular time the property or that part of property to the non-resident portion trust,

ix.  if all or part of property becomes at a particular time part of the particular trust’s resident portion and immediately before the particular time the property or that part of property was part of its non-resident portion, the non-resident portion trust is deemed to have transferred at the particular time the property or that part of property to the particular trust,

x.  the particular trust and the non-resident portion trust are deemed at all times to be affiliated with each other and to not deal with each other at arm’s length,

xi.  the particular trust has solidarily with the non-resident portion trust the rights and obligations of the non-resident portion trust in respect of any taxation year under Book IX, and the Tax Administration Act (chapter A-6.002) applies in respect of those rights and obligations, and

xii.  if the non-resident portion trust ceases to exist at a particular time determined in accordance with any of subparagraphs 1 to 3 of subparagraph i, the following rules apply:

(1)  the non-resident portion trust is deemed, at the time (in this subparagraph xii referred to as the “disposition time”) that is immediately before the time that is immediately before the particular time, to have disposed of each of its properties that is property described in any of subparagraphs i to iv of paragraph b of section 785.1 for proceeds of disposition equal to the cost amount to it of the property at the disposition time and of each of its other properties for proceeds of disposition equal to its fair market value of the property at the disposition time,

(2)  the particular trust is deemed to have acquired, at the time that is immediately before the particular time, each property described in subparagraph 1 at a cost equal to the proceeds of disposition determined under subparagraph 1 in respect of the property, and

(3)  each person or partnership that is at the time immediately before the particular time a beneficiary under the non-resident portion trust is deemed at the disposition time to have disposed of the beneficiary’s interest as a beneficiary under the non-resident portion trust for proceeds of disposition equal to the beneficiary’s cost amount in the interest at the disposition time and to have ceased to be, other than for purposes of this subparagraph 3, a beneficiary under the non-resident portion trust;

(f)  where there is, at that time, a resident contributor to the trust that is a tax-liable taxpayer in respect of the trust or a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust if a connected contributor to the trust at that time is a tax-liable taxpayer in respect of the trust at that time, the trust is deemed, for the purpose of applying Book II and determining the trust’s tax liability under this Part, to be resident in Québec on the last day of the particular year and, where the trust is an electing trust in respect of the particular year, its income for the particular year is deemed to be equal to the portion of that income, otherwise determined, that may reasonably be considered as being attributable to property that was contributed to the trust on or before that time by a contributor that is at that time a resident contributor to the trust and a tax-liable taxpayer in respect of the trust, or, if there is at that time a resident beneficiary under the trust that is a tax-liable taxpayer in respect of the trust, a connected contributor to the trust and a tax-liable taxpayer in respect of the trust; and

(g)  each person that at any time in the particular taxation year is a resident contributor to the trust (other than an electing contributor to the trust at the specified time) or a resident beneficiary under the trust and that is a tax-liable taxpayer in respect of the trust at any time has, solidarily with the trust and with each other such person that is such a resident contributor or such a resident beneficiary, the rights and obligations of the trust in respect of the particular taxation year under Book IX, and the Tax Administration Act applies in respect of those rights and obligations.

1975, c. 22, s. 164; 1997, c. 3, s. 71; 2015, c. 36, s. 28.

2006-03-01

595. For the purposes of section 594, a trust or a corporation not resident in Canada is deemed to have acquired property from any person who has given a guarantee on its behalf or from whom it has received any other financial assistance.

1975, c. 22, s. 164; 1997, c. 3, s. 71.