I-3 - Taxation Act

Section 597.7 Disposition versions

2015-12-04

597.7. Section 597.8 applies to a beneficiary under a trust, and to a particular person of which such a beneficiary is a controlled foreign affiliate, at a particular time if

(a)  the trust is at that time an exempt foreign trust (other than a trust described in any of paragraphs a to g of the definition of “exempt foreign trust” in the first paragraph of section 593);

(b)  either

i.  the total fair market value at that time of all fixed interests of a particular class in the trust held by the beneficiary, persons or partnerships not dealing at arm’s length with the beneficiary, or persons or partnerships that acquired their interests in the trust in exchange for consideration given to the trust by the beneficiary, is at least 10% of the total fair market value at that time of all fixed interests of the particular class, or

ii.  the beneficiary or the particular person has at or before that time contributed restricted property to the trust; and

(c)  the beneficiary is at that time a

i.  resident beneficiary,

ii.  mutual fund,

iii.  controlled foreign affiliate of the particular person, or

iv.  partnership of which a person listed in any of subparagraphs i to iii is a member.

2015, c. 36, s. 33.