I-3 - Taxation Act

Section 688.0.0.2 Disposition versions

2009-05-15

688.0.0.2. If a trust that is not resident in Canada makes a distribution of a property, other than a property described in subparagraph b or c of the first paragraph of section 688.0.0.1, to a beneficiary under the trust in full or partial satisfaction of the beneficiary’s capital interest in the trust, and the beneficiary makes a valid election under subsection 2.002 of section 107 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of the distribution of property, the following rules apply:

(a)  section 688 does not apply to the distribution; and

(b)  for the purposes of subparagraph b of the first paragraph of section 686, the cost amount of the interest to the beneficiary is deemed to be nil.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 2.002 of section 107 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2003, c. 2, s. 173; 2009, c. 5, s. 218.

2006-03-01

688.0.0.2. Where a trust that is not resident in Canada makes a distribution of a property, other than a property described in paragraph b or c of section 688.0.0.1, to a beneficiary under the trust in full or partial satisfaction of the beneficiary’s capital interest in the trust and the beneficiary makes an election under this section in prescribed form filed with the Minister with the beneficiary’s fiscal return for the beneficiary’s taxation year in which the distribution occurs, the following rules apply:

(a)  section 688 does not apply to the distribution; and

(b)  for the purposes of subparagraph b of the first paragraph of section 686, the cost amount of the interest to the beneficiary is deemed to be nil.

2003, c. 2, s. 173.