I-3 - Taxation Act

Section 677.1 Disposition versions

2019-06-19

677.1. For the purposes of section 677, property is not considered to be contributed to a trust as a result of

(a)  a qualifying expenditure (within the meaning of section 118.04 or 118.041 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) of a beneficiary under the trust; or

(b)  an amount paid to, or on behalf of, the trust by another trust where

i.  the trust is an individual’s succession that is a graduated rate estate (determined without regard to the amount paid and this section),

ii.  subparagraph b of the first paragraph of section 663.0.1 applies to the other trust, for a taxation year that ends at a time determined by reference to the death of the individual referred to in subparagraph i, because of an election referred to in subparagraph c of the second paragraph of section 663.0.1 and made by the other trust and the legal representative administering the individual’s succession,

iii.  the amount is paid on account of the tax payable by the individual referred to in subparagraph i, for the individual’s taxation year that includes the day on which the individual dies, under this Part, Part I of the Income Tax Act or the law of another province in which the individual was resident immediately before the individual’s death, that imposes a tax on the taxable income of individuals resident in that province, and

iv.  the amount paid does not exceed the amount by which the tax payable referred to in subparagraph iii exceeds the amount that would have been payable on account of that tax if subparagraph b of the first paragraph of section 663.0.1 had not applied to the other trust in respect of the taxation year referred to in subparagraph ii.

2010, c. 25, s. 51; 2017, c. 1, s. 160; 2019, c. 14, s. 173.

2017-02-08

677.1. For the purposes of section 677, a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04 or 118.041 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) of a beneficiary under the trust.

2010, c. 25, s. 51; 2017, c. 1, s. 160.

2010-10-27

677.1. For the purposes of section 677, a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) of a beneficiary under the trust.

2010, c. 25, s. 51.