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I-3 - Taxation Act
Section 596
Disposition versions
596. For greater certainty, section 595 does not deem a trust to be resident in Canada
(a) for the purposes of subparagraph i of subparagraph b of the second paragraph of section 248;
(b) for the purposes of subparagraph i of paragraph b of the definition of “investment fund” in section 21.0.5, sections 440, 454 and 597.0.6, the definition of “Canadian partnership” in the first paragraph of section 599, paragraph c of section 692.5, the definition of “qualified disability trust” in the first paragraph of section 768.2, the definition of “eligible trust” in section 796.1 and paragraph a of section 1120;
(c) for the purpose of determining whether section 467 applies;
(d) for the purposes of the definitions of “arm’s length transfer” and “exempt foreign trust” in the first paragraph of section 593;
(e) for the purpose of determining whether section 692 applies in respect of a distribution of property to the trust after 17 July 2005;
(f) for the purpose of determining whether, in applying section 785.1, the trust becomes resident in Canada at a particular time; and
(g) for the purpose of determining whether, in applying section 785.2, the trust ceases to be resident in Canada at a particular time.
596. For greater certainty, section 595 does not deem a trust to be resident in Canada
(a) for the purposes of subparagraph i of subparagraph b of the second paragraph of section 248;
(b) for the purposes of subparagraph i of paragraph b of the definition of “investment fund” in section 21.0.5, sections 440, 454 and 597.0.6, the definition of “Canadian partnership” in the first paragraph of section 599, paragraph c of section 692.5, the definition of “qualified disability trust” in the first paragraph of section 768.2 and paragraph a of section 1120;
(c) for the purpose of determining whether section 467 applies;
(d) for the purposes of the definitions of “arm’s length transfer” and “exempt foreign trust” in the first paragraph of section 593;
(e) for the purpose of determining whether section 692 applies in respect of a distribution of property to the trust after 17 July 2005;
(f) for the purpose of determining whether, in applying section 785.1, the trust becomes resident in Canada at a particular time; and
(g) for the purpose of determining whether, in applying section 785.2, the trust ceases to be resident in Canada at a particular time.
596. For greater certainty, section 595 does not deem a trust to be resident in Canada
(a) for the purposes of subparagraph i of subparagraph b of the second paragraph of section 248;
(b) for the purposes of sections 440, 454 and 597.0.6, the definition of “Canadian partnership” in the first paragraph of section 599, paragraph c of section 692.5, the definition of “qualified disability trust” in the first paragraph of section 768.2 and paragraph a of section 1120;
(c) for the purpose of determining whether section 467 applies;
(d) for the purposes of the definitions of “arm’s length transfer” and “exempt foreign trust” in the first paragraph of section 593;
(e) for the purpose of determining whether section 692 applies in respect of a distribution of property to the trust after 17 July 2005;
(f) for the purpose of determining whether, in applying section 785.1, the trust becomes resident in Canada at a particular time; and
(g) for the purpose of determining whether, in applying section 785.2, the trust ceases to be resident in Canada at a particular time.
596. For greater certainty, section 595 does not deem a trust to be resident in Canada
(a) for the purposes of subparagraph i of subparagraph b of the second paragraph of section 248;
(b) for the purposes of sections 440, 454 and 597.0.6, the definition of “Canadian partnership” in the first paragraph of section 599, paragraph c of section 692.5 and paragraph a of section 1120;
(c) for the purpose of determining whether section 467 applies;
(d) for the purposes of the definitions of “arm’s length transfer” and “exempt foreign trust” in the first paragraph of section 593;
(e) for the purpose of determining whether section 692 applies in respect of a distribution of property to the trust after 17 July 2005;
(f) for the purpose of determining whether, in applying section 785.1, the trust becomes resident in Canada at a particular time; and
(g) for the purpose of determining whether, in applying section 785.2, the trust ceases to be resident in Canada at a particular time.
596. For the purposes of sections 571 to 576.1, 578 to 583 and 598, where the distribution of the income or capital to the beneficiary of a foreign trust to which this chapter applies for a taxation year of the trust does not depend upon the exercise of, or the failure to exercise, any discretionary power:
(a) the trust, with respect to any beneficiary the fair market value of whose beneficial interest in the trust is not less than 10% of the fair market value of all beneficial interests in the trust, is deemed to be a corporation not resident in Canada controlled by such beneficiary;
(b) the trust is deemed to be a corporation not resident in Canada having a capital stock of a single class of shares divided into 100 issued shares; and
(c) each beneficiary under the trust is deemed to own a percentage of such shares equal to the percentage that the fair market value of his beneficial interest in the trust is of the fair market value of all beneficial interests in the trust.
